Money borrowed from a family member

November 4th, 2005 by Questions

A family member lent us a large sum of money to start a business. She would forgive our debt if we were unable to pay, yet it was a loan. Should she be named as creditor and what would this mean to her?

Questions

One Response to “Money borrowed from a family member”



, A licensed trustee said:

If she loaned you money, and there is a written loan agreement, she would be named as a creditor if you went bankrupt, and she would be entitled to any proceeds that were distributed to your creditors in your bankruptcy.

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