Credit Help Forums

crabbycredit · #1 10-27-2005, 01:16 PM

One of my debtors just filed BK, and used my cancelled checks in his filing. Does that mean he is legally defended from having to pay me? Will the IRS acknowledge this as a bad debt that's uncollectible?

bct · #2 10-27-2005, 04:57 PM

Id say he still has to pay you... its kinda illegal not to.

Killian · #3 10-29-2005, 12:58 PM

Unfortunately I think that you aren't going to see that money. Any debts are covered under a bankruptcy except student loans and taxes. That is why he used those checks.

bct · #4 10-31-2005, 02:32 PM

Quote:

Originally Posted by Killian

Unfortunately I think that you aren't going to see that money. Any debts are covered under a bankruptcy except student loans and taxes. That is why he used those checks.

you are probably right... thats a real shame

taiarain · #5 07-28-2006, 07:57 AM

I think you'll probably never see this money. Talk to your accountant about the deductibility of the debt.

Taia

Mrs Wolfie · #6 08-07-2006, 08:50 PM

BK is a way of cleaning the slate. Unless they file debts seperately as ones they are willing to pay, which folks do in case of cars for example, you will not see that money. It is sad, so sorry. BK is a way out of debt, bottom line.

Zanzi · #7 08-09-2006, 09:27 AM

Mrs. W. is correct. Unless the money that is owed to you is because of a court settlement, then it cannot be dismissed. The same is true for alimony and child support. But if your debtor just owes you money because you lent it to him, or because he did business with you, then you are pretty much out of luck.

Avian · #8 09-03-2006, 02:05 PM

That's one of the problems with bankruptcy. The creditors are pretty much out of luck.

r8rpwr · #9 09-04-2006, 08:24 AM

The amount of bad debt is deductible if you keep your books on an accrual basis only.

If you are on a cash basis, then you never picked up the income so logically you don't deduct it when there is a bad debt either.

Either way, the net effect is zero, which is as it should be.

barbiedoll1973_tn · #10 09-14-2006, 05:32 AM

Quote:

Originally Posted by Killian

Unfortunately I think that you aren't going to see that money. Any debts are covered under a bankruptcy except student loans and taxes. That is why he used those checks.

I think that this is true of this is what I have been told so I am sorry you will probably never get a dime out of him sorry.