Personal loan and signed Note

November 30th, 2007 by Questions

I loaned and had signed a promissory note with payments until 2011 from someone who just filed bankrupty. I know I loose the arrears that I have a judgement on, but what about future payments Can I not garnishment his wages to get future payments.


One Response to “Personal loan and signed Note”

, Barton Goth GCO Bankruptcy Trustees said:

Unless you have taken security on any of the debtor’s assets, from what you have described this is likely a claim that will be cleared by a bankruptcy (the full amount, not just the arrears).

In line with this there is a stay of proceeding that is in place as soon as someone files a bankrutpcy that prevents any type of collection attempt. So at this point you will likely need to file a proof of claim with the trustee in question to preserve any of your rights to potential dividends.

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