Quote:
Originally Posted by BarTopDancer
Does anyone know if an individual who has borrowed money from a sibling can claim the sibling as a creditor in their bankruptcy and essentially write the debt off?
(let's try to avoid the debate of lending money you can't afford to lose/lending money to family.)
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Yes. In fact, you MUST list all money owed in a bankruptcy. This doesn't mean that the familly member couldn't still pay it back later once they get on their feet.
On the flip side, with a little documentation, you can claim a bad debt write-off on taxes for money loaned and not repayed.