A former friend loaned me $2,750, 6 years ago in Illinois.
My wife and I ended up declaring Chapter 7 bankruptcy, Discharged...3 years ago.
I'm working part time and not able to pay all our bills and now this person is threatening me with getting a judgement from Cook County.
1) Am I covered by the Chapter 7 Bankruptcy Discharge? I forgot to list this person at the time.
2) Is there a statue of limitations for a personal loan in Illinois and is it possible to beat a judgement for a personal loan?
1 Answer from Attorneys
In theory, failing to list the debt could impact the discharge of the debt, but you could also argue that the debt qualified for discharge or try to jump some hurdles to reopen and add the debt. So, perhaps your best course would be to reach a full and final settlement as both sides stand to lose paying court costs and attorney fees. I suggest speaking with your bankruptcy attorney. If you think it would work to send a letter from the attorney stating that the debt was discharged regardless whether it was listed and suggesting that collection attempts violate the discharge stay, that is an arguable position and may put an end to the situation.
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