Legal Question in Bankruptcy in California

My husbands brother has named us and his mother as a creditor in his most recent bankruptcy. He borrowed $8000 from my husband and us so he could buy a double burial site a very nice cemetery when is wife passed away two years ago. He said he would pay it back when he got the money from his wife's life insurance that actually went to his wife's daughter. This brother also had his name on one of his mother's credit card (limit $5K) that he would use and pay $200/mth so his mom had no financial obligation. A year ago he stopped paying and maxed the card out, so his mom of 88years and limited means has been forced to pay the card payments each month as her savings dwindles away. What can we do. Can we have good grounds to argue for removal from the Bankrupcy? Thank you - Susan

Asked on 12/04/18, 10:31 am

1 Answer from Attorneys

Stanley Zlotoff Law Offices of Stanley A. Zlotoff

Fraud is an exception to a debt's discharge in bankruptcy. However, it would require proving that at the time when the son made the charges he intended not to repay them. The procedure would require that a formal lawsuit--called and adversary proceeding--be filed in the bankruptcy court, by the mother, within a short specified period of time-- 60 days from the first Meeting of Creditors

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Answered on 12/04/18, 10:45 am

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