For many who find themselves in dire financial straits, borrowing money from friends and family becomes a last resort. It can be humbling – even humiliating – and the last thing we want to do is stiff our relatives when filing for bankruptcy.
The Denver bankruptcy lawyers at George T. Carlson & Associates have helped countless clients reclaim their financial freedom and independence. We understand the mounting stress and pressure that comes with financial problems. We know about the reduced quality of life and the sometimes strained relationships with friends and family.
Typically, debt owed to family should be included in a bankruptcy filing – and you should stop making payments. The court has the ability to reclaim significant amounts of money paid immediately before filing, and drawing a family member or friend into your court action is the last thing you want to do.
Repaying Friends amid a Colorado Bankruptcy Filing
- A formal contract can be written to deal with a friend or family members ownership interest in real property.
- You cannot pick and choose who you pay. Payments to friends and family members made in the year before filing bankruptcy could raise questions.
- The law does not permit you to show preference toward creditors.
- Repayment of a loan within 30 days or when the total value is less than $500 can be permissible.
- Payments for secured debt – such as when a relative or friend loans money for a car loan – may be permissible.
- A family member or friend can obtain a lien against real property before bankruptcy filing, which can secure their rights to repayment.
Having family members or friends who are creditors is always tricky. This is never more true than when you are contemplating filing for bankruptcy protection. Each case is unique. Consulting a Colorado bankruptcy attorney is the best course of action to protect yourself, your relationships with family and friends and your current and future financial well-being.
Contact a Colorado Bankruptcy Attorney Today
If you need bankruptcy assistance in Denver or would like more information, call George T. Carlson & Associates today at 303-789-1313 for a free consultation or contact us online. We are a debt relief agency. We help people file for bankruptcy under the Bankruptcy Code. Serving clients in Denver and throughout Colorado, including Aurora, Englewood, Lakewood and Boulder.
Denver Bankruptcy Help – 303-789-1313 – Free Consultation
