66 East Main Street, 3rd Floor Little Falls, NJ 07424

Friends Become Enemies When $ Involved

Share on facebook
Facebook
Share on linkedin
LinkedIn

Background

  • Person alleged that his friend stole $2,000.00 from his backpack while hiking
  • Friend said she paid him back but the check was never cashed
  • He claimed he did not deposit the check because he knew there was never any money in account.
  • Chapter 7 was filed for all debts.
  • The $2,000.00 was inadvertently omitted.
  • Chapter 7 case amended to include the $2k and notice sent out to this creditor
  • Person continued to contact his friend and threaten criminal charges.
  • Calls continued and continued
  • Debtor filed motion for contempt

Court Ruling:

  • Court determined the creditor’s actions were significantly egregious and/or vindictive in nature.
  • Court awarded Debtor $170 for lost wages for Debtor to appear in court and $500 in punitive damages

Not only did the creditor not receive the $2k but now had to pay his “friend” $670.

Bankruptcy rules apply to everyone – you cannot continue to contact a debtor, even your “friends”