Re: does friend owe me?

I think I started to answer this same question a few days ago, though I see that new information has now been provided. There is important practical advice that you need to hear which would best be heard in a privileged conversation between you and an attorney who really knows this area of law.

Technically, since the debt to you preceded the bankruptcy, it has been discharged in the chapter 7 case and the seller doesn't have to pay you anything.

Also technically, if you have actual knowlege of the discharge and attempt to collect the debt anyway, then you are in violation of either the stay of bankruptcy or the permanant injunction (depending on whether the chapter 7 is already finalized).

Had you been notified of the bankruptcy you would have been able to file a motion to object to discharge seeking to have your debt determined to be non-dischargeable as procured by fraud.

Since you were not listed as a creditor, you would have the right to reopen the bankruptcy case now and file that motion to object to discharge (which would involved going through litigation and a trial to prove that the obligation was procured by fraud).

If you prevaiil on dischargeability in the bankruptcy court then you could go to state court and sue to get a judgment, which you then would try to enforce by getting attachments, garnishments, levies, etc.

So, you can see that there are risks and costs in your available options. If you accept the offer, and the offer itself was based on your attempts to collect the debt in violation of the code, then you could theoretically wind up with problems.

On the other hand, if you go to court on dischargeabiilty, you will spend a bunch of money on lawyers and while you may get a judgment, you may never collect on it.

So, you need to makea business judgment on what to do.

Again, in order to properly weigh the risks and benefits of the available courses of action, you should consult with and have a privileged conversation with a bankruptcy attorney.

Re: does friend owe me?

I think I started to answer this same question a few days ago, though I see that new information has now been provided. There is important practical advice that you need to hear which would best be heard in a privileged conversation between you and an attorney who really knows this area of law.

Technically, since the debt to you preceded the bankruptcy, it has been discharged in the chapter 7 case and the seller doesn't have to pay you anything.

Also technically, if you have actual knowlege of the discharge and attempt to collect the debt anyway, then you are in violation of either the stay of bankruptcy or the permanant injunction (depending on whether the chapter 7 is already finalized).

Had you been notified of the bankruptcy you would have been able to file a motion to object to discharge seeking to have your debt determined to be non-dischargeable as procured by fraud.

Since you were not listed as a creditor, you would have the right to reopen the bankruptcy case now and file that motion to object to discharge (which would involved going through litigation and a trial to prove that the obligation was procured by fraud).

If you prevaiil on dischargeability in the bankruptcy court then you could go to state court and sue to get a judgment, which you then would try to enforce by getting attachments, garnishments, levies, etc.

So, you can see that there are risks and costs in your available options. If you accept the offer, and the offer itself was based on your attempts to collect the debt in violation of the code, then you could theoretically wind up with problems.

On the other hand, if you go to court on dischargeabiilty, you will spend a bunch of money on lawyers and while you may get a judgment, you may never collect on it.

So, you need to makea business judgment on what to do.

Again, in order to properly weigh the risks and benefits of the available courses of action, you should consult with and have a privileged conversation with a bankruptcy attorney.