Legal Question in Bankruptcy in New York

Write a loan not contingent upon bankruptcy

Can I legally write a statement in a loan that states the loan MUST be repaid even if bankruptcy is declaired?


Asked on 11/10/03, 9:08 am

2 Answers from Attorneys
Andrew Nitzberg Andrew Nitzberg & Associates

Re: Write a loan not contingent upon bankruptcy

Yes you may include that statement (clause) in a loan agreement. It will be ineffective. The debtor's rights in Bankruptcy will not be affected at all. You cannot contract around Bankruptcy in this way.

However, there are ways to contract around Bankruptcy - a secured transaction is the answer. You are welcome to a consultation with me for no fee at my offices at 42 West 44th Street. Please call for an appointment first, (646) 591-5786.

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Answered on 11/10/03, 1:13 pm
Eric Kochel The Law Office of Eric David Kochel, Esq., P.C.

Re: Write a loan not contingent upon bankruptcy

No, you cannot provide a term in a loan that overides the Federal Bankruptcy law. All citizens have there rights under this law against any creditor - secured or unsecured - after all - that's the purpose of Bankruptcy. If it is a securd loan it will offer you some protection - i.e you may be able to get your collateral back - but there are ways for a debtor to ptotect himself against that also in Bankruptcy to some extent.

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Answered on 11/10/03, 2:11 pm


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