Legal Question in Bankruptcy in Indiana

Re: Losing an unsecured loan in bankruptcy

If you loaned him the money and didn't secure the debt in some fashion and if he lists you as a creditor in a chapter 7 BK, then you cannot get your money back -- and you cannot pursue collections.

If your name was on the title of the truck, you could.

Now, I think you have some valid arguments that you are a secured creditor -- if he doesn't pay, he gives you the rig back, but without a contract, that's going to be tough to prove.

I do advise you to consult an attorney who does a lot of bankruptcy law. It's worth it to see if there's any way to protect your rights here, though from what you've stated, I suspect there isn't.

Re: Losing an unsecured loan in bankruptcy

The general rule is that an unsecured loan ( one without collateral) is dischargeable. Since you dont have the title, you are unsecured. What's more, the bankruptcy trustee has a statutory lien which could result in the truck being sold with the moneies from the sale being distributed to creditors, including you.

All is not without hope. There are exceptions to dsicharge and depending on the facts and circumstances surrounding your loan to your ex son-in-law, you may have some options.

However, the time limits are very short-you should consult a bankruptcy attorney-preferably one who represents creditors only.

Your daughter is only legally obligated to repay you if she agreed to do so, preferably in writing. Otherwise, even though the divorce decree provides that he must pay and hold her harmles, it still may be discharged although there are exceptions for some marital debts.

Again, seek a consultation asap-most attorneys do not charge for the intitial consultation.

John E Bator

Bator Redman and Shive, P.C.

317-685-2426