going bankrupt - debts to friends and family

want2bmortgage3

i know somebody who may be filing for bankruptcy, as well as loans and credit card debts they have borrowed money off of a couple of friends and family members. what i want to know is there any way that this person can transfer these 'personal' debts elsewhere so they will be written off as part of going bankrupt? or should he just aim to pay them back once he gets sorted out???

skylight

Legally, all these debts will be included in his BR, so should be listed with his petition.

If he wants to pay them back for moral reasons after he has sorted himself out that is his business, but there is no-way he can be forced to.

want2bmortgage3

hi skylight
what about if they got a few pay day type loans out before actually doing any bankruptcy proceedings, and used that money to re pay the family and friends? then added the new loans onto the bankruptcy statment (or whatever forms you fill in)??

RAS

Taking on new debt just prior to going bankrupt would be questioned and could result in a BRO, unless he can demonstrate that he was in a postion to pay the debt back.

Also paying one creditor and not others is considered favouring a creditor and the OR can demand the money back..