Debt Owed To Bankrupt Person
My friend borrowed $500 from a person who subsequently filed chapter 7 bankruptcy and had his debts discharged. What is the status of the $500 loan? The source of the loan was a credit card. When the person loaning the money had that debt discharged, doesn't that also let my friend off the hook?. Thanks.
Answer:
As I understand your post, A borrowed money from his credit card, loaned it to B, who filed for bankruptcy, listed the loan as a debt, and received a discharge. A can't go after B for the loan, since it was discharged. A is still obligated to pay the credit card bill for the money borrowed from the credit card, since his debt to the credit card company is unaffected by B's bankruptcy
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