There is the issues of repayment of loans to family members during bankruptcy. Prior to filing bankruptcy, avoid repaying loans to family members.  It is not fair to pay your mother back for making a mortgage payment for you must before you file bankruptcy when other creditors are unpaid.  The court may take that money back from your mother and distribute it to other creditors.  As such, if you do repay family, you may be doing more harm than good.

This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice regarding Repayment of Loans to Family Members During Bankruptcy, or any other Bankruptcy matters, please feel free to contact Joel E. Sannes at 480.461.5307, or log on to,  or contact an attorney in your area. Udall Shumway PLC is located in Mesa, Arizona and is a full service law firm. We assist Individuals, families, businesses, schools and municipalities in Mesa and the Phoenix/East Valley.