Can someone still collect on a debt if they file bankruptcy?
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Can someone still collect on a debt if they file bankruptcy?
I have signed a promissory note for a personal loan and the people that I owed the loan to have filed bankruptcy twice. They did not report my debt to them either time. Am I still legally obligated to pay the promissory note?
Asked on September 25, 2011 under Bankruptcy Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Unfortunately for you, a bankruptcy filing has *no* effect whatsover on debts owed to the filer. Bankruptcy is a way for a person (or business) to discharge his or her own debts--that is, it affects the debts owed by the person who filed bankruptcy. It does not affect in any way the debts owed to that person. So regardless of how often these people have filed bankruptcy, you still owe the money to them, and they still have the right to take collection action--including filing a lawsuit--against you. If you filed bankruptcy, that might be different; the only way for you to affect debts owed by you to others would be by filing your own bankruptcy.
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