Is this True?

[frogger]

Believe me, I have been totally cured of the curse of generosity. The next time someone I know is 'desperate', all they will get from me is the suicide prevention hotline number.

I know that feeling. The only generosity that anyone will see from me anymore is to be fed if they're hungry.

Never another dime of money. Never.........

[researchnerd]

Also: take everything that looks like fraud (known sudden change in income, purchasing luxury items for herself in another person's name, etc) write it out clearly and concisely. Them mail a copy to the bankruptcy/panel trustee, the US Trustee, and the judge on the case. Then go to the 341 meeting and bring these same objections up there as well.

+1

Document everything you possibly can, including copies of your cancelled checks. Send your docs to the Trustee and bring them with you to the 341.

Showing up in person at her 341 in another state may be a huge PITA, but might be totally worth it just to see the expression on her face when you walk in. It will also show the Trustee that you are serious about your objections. You are a creditor and have the same rights every other creditor has.

Don't forget to file a claim for the full amount she owes you!

[Yellowsnow]

She is marrying the wealthy guy this next week. They aren't waiting for the BK to be done.

So what would happen if her case got thrown out? She would have to refile? As being married to the rich guy? In other words it would ruin the whole deal?

The whole thing is just wrong to me. I always thought BK meant you were really in trouble.

[researchnerd]

She is marrying the wealthy guy this next week. They aren't waiting for the BK to be done.

So what would happen if her case got thrown out? She would have to refile? As being married to the rich guy? In other words it would ruin the whole deal?

The whole thing is just wrong to me. I always thought BK meant you were really in trouble.

Not necessarily. If there are objections she will have a chance to amend and explain her original petition. She can do this without re-filing, and if she does it successfully, the case won't be thrown out. Or, since she's well over the median income for 1 person, she could be forced into a Ch13, where she'd have to pay back a portion of her debt. It could go a number of different ways.

Honestly though, it doesn't sound like the BK is a huge priority for her. If it gets too complicated she might just convince Sugar Daddy to pay everyone off. If he is marrying her before the BK is even confirmed, the whole thing may just be a formality.

[amalejko]

[mrskal]

I would not want to hurt anyone really, but I would want my 7K back if it were me!

[JackBondLove]

You are so right.......

Believe me, I have been totally cured of the curse of generosity. The next time someone I know is 'desperate', all they will get from me is the suicide prevention hotline number.

Darn....I was so hoping this was true. She needs to feel my pain. She will be wealthy and able to replace everything she lost....plus. She took 7K of my retirement money that I can't replace. She comes out of this smelling like a rose...a rich rose. And I lose.

Wait a minute! Are you saying that you took a $7K distribution of your retirement to loan to your friend? I'd love to hear the sob story that she laid out on you.

BTW, if you *really* want to get even, you should inform her fiance about her character.

[nc73]

Wait a minute! Are you saying that you took a $7K distribution of your retirement to loan to your friend? I'd love to hear the sob story that she laid out on you.

BTW, if you *really* want to get even, you should inform her fiance about her character.

I doubt the fiance would care. In any case unless I was getting something out of it nobody is getting 7k from me.

[JackBondLove]

This depends if you're married. If you're married, the engagement ring is FAIR territory for the Trustee. However, if you're not married, the engagement ring is part of a contract and is... and I'm laughing writing this... a secured debt since you must actually complete the contract -- marry -- in order to keep it.

The way you put that made me think about the way that the comedian Andrew Dice Clay would describe the use of an engagement ring for securitization.

[keptdigging]

BK is a matter of law not fairness.

But, as plenty of people on this board know first hand, her eligibility for a Ch 7 WILL be scrutinized by the US Trustee. The way you can affect this is simply make sure her filings are accurate (is that 80K job listed?) By all appearances, the US Trustee is very interested in hearing about people lying on their petitions.

Also at the 341 she may get asked "Has there been any material change in your financial circumstances since you filed?" You probably want to make sure the UST or panel trustee knows the answer to that one before they ask.

The "2K, disputed" is only relevant if she actually has assets. (Weird that she'd lie, though, since it won't affect her, only you.)

[ja181]

Interesting question here: What if she writes off the debt and sends the form xyz to the IRS before discharge. They get it, call it income, not debt, and it is included in year end tax filing. It just might work.......IRS will go for the option that nets the most tax dollars.

Tom

Lots of creditors do this, I believe it is a 1099-C, but there's an exemption for people who are insolvent (aka people who have filed bankruptcy) use when filing their taxes to not have to pay the taxes on the income

Won't do anything but waste your time.

[helpmeout]

Interesting question here: What if she writes off the debt and sends the form xyz to the IRS before discharge. They get it, call it income, not debt, and it is included in year end tax filing. It just might work.......IRS will go for the option that nets the most tax dollars.

Tom

No, they will go with the bankruptcy filing. All she would have to do is complete a form 942 and it's not counted as income.

[Yellowsnow]

Thanks everyone!

Here's what I have..... Is it enough to get her thrown into 13 rather than 7?

1) She has had a substantial financial change since she filed. She married a man who has a long term career with Microsoft as a software developer. She is no longer paying rent because she moved into his apartment. The man she married is most likely making well in excess of 6 figures.

2) She understated her debt to me. There were 2 loans. The first for 5K and a second for 2K. She noted the 2K loan as disputed. She has never discussed this with me. All I can say for sure is that she took the money and never paid me back.

3) She is currently underemployed and will get a higher paying job in the future. As recently as 2008 she was making almost 6 figures working for Hewlett Packard.

4) She has an unreported revenue stream. If her current and closed PayPal accounts are checked, you will find the money. She is a well known blogger and frequently discussed her financial problems and asked for donations on her blogs. I have no way of knowing how much money is involved but I have read many posts where she thanks people for their generous contributions or gifts.

[ForumReader]

"Don't be vindictive. Be smart. If you want to see what your options are, hire a bankruptcy attorney. Do not take any advice from non-bankruptcy attorneys."

Justbroke is correct. If I were you in your shoes, I would see a BK attorney and ask what my options would be. How long ago did you loan your friend the 7K? If she has listed you as a creditor, then you do have the right to show up at her 341 and ask questions and bring your documents to prove you gave her $7K. You can also file a claim for your loan and check to see what the trustee has to say about this.

[blockhead]

I'm on the other side of the whole BK issue. Sorry.

An exfriend filed for Ch 7 to skip out on paying me back on a 7K loan. Note, this is a truly questionable action on her part. She is doing this as a condition to marrying a wealthy man. She will be quite well off financially after the wedding. She got some beautiful diamonds, etc. So this isn't quite the same as what most of you are going through.

What I find is questionable is that she is filing BK as a condition for the marriage. A pity the totality of the circumstances doesn't lead to her
having her case dismissed - maybe unprovable but smacks of fraud to me.