QUESTION

Can a promissory note loan be discharged in bankruptcy?

Asked on May 09th, 2011 on Bankruptcy - Western Australia
More details to this question:
I married my husband before the sale of my home that I had for 12 years. I met him when my house was for sale and married him after the sale of my home. It was my separate property and he sign paper work that states that. After marrying he borrowed a large chunk of money and wrote me a promissory note for the loan. We are separated, not legally and he said he filed bankruptcy on the loan I gave to him. Can he do that?
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judith runyon
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Answered on Jun 10th, 2013 at 11:16 PM
Yes.

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Mr. Eric C. Lewis
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Answered on May 12th, 2011 at 11:46 AM
If the loan is not secured, it is quite likely that it has been discharged in bankruptcy.

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Answered on May 11th, 2011 at 9:51 AM
A promissory note, unless incurred by fraud or misrepresentation, is dischargeable in bankruptcy. If the note is secured by real estate the security interest survives the bankruptcy.

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Answered on May 11th, 2011 at 8:58 AM
Yes. The loan you describe is a dischargeable debt. That said, you may be able to get reimbursement through the family law court through an unequal distribution of community assets. If you are in my area and are looking for an attorney, please contact me for a free consultation.

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Answered on May 10th, 2011 at 12:43 PM
Yes, you made him a personal loan with your separate funds and he can discharge that debt as any other personal loan.

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Spencer Hale
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Answered on May 10th, 2011 at 11:59 AM
Unfortunately, he can discharge the loan you gave to him. However, you may have an ownership claim in whatever property (real estate or personal property) he bought with the money loaned to him. You should speak with a family law attorney to discuss the community property issues in your case.

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Answered on May 10th, 2011 at 11:55 AM
A promissory note can be discharged as long as there was no collateral on the loan, that is, as long as nothing was pledged as collateral for the loan. If the note was standing alone without any form of security attached, ( eg house, car , etc), then your husband sure can discharge the debt in a bankruptcy.

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