Legal Question in Bankruptcy in Illinois

I have a noterized contract with someone with the price of $10,000 and I was wondering if there is any way that they won't have to pay me if I took them to court. Can they file for bankruptcy and then I'm out $10,000? Can they get an extension even though they have had a year to make a payment?


Asked on 4/15/14, 11:37 pm

1 Answer from Attorneys
Henry Repay Law Offices of Henry Repay

The debt can be included in a bankruptcy if the debtors qualify to file. Most people unable to pay their bills would qualify for some type of bankruptcy.

If you have a security interest that is properly documented, such as a recorded mortgage or a lien showing on the title of their car, that would at least give you something in the event of a bankruptcy, subject to earlier liens.

Absent any terms in the contract, there is not a right to an extension, but effectively if you are forced to get a judgment that itself will add time and the collection of the judgment can take a long time. Limitations on how you can collect may mean that this will be paid over more time than was expected by the contract.

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Answered on 4/16/14, 5:29 am


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