What Happens If Someone Owes You Money And Files Bankruptcy?

Added: 2026-06-02

[00:00:00]So, this Reddit post is about someone that loaned someone money and that person ended up filing for bankruptcy.

[00:00:05]The best option that someone's going to have in this situation is to try to file what's called a adversary proceeding against this person to show that there was fraud. The big way to get a debt what's called non-discharge, meaning you're still going to owe money even after the bankruptcy, is to file what's called an adversary proceeding. The issue is the only way to prove that the debt's non-dischargeable is to show that there was fraud. Really, in bankruptcy, it's one of the reasons that it's a beautiful thing. There's not too many ways to keep your debt from being discharged, but showing that there was fraud in the agreement would be the way.