Note: The DearEsq free 'ask a lawyer' site is offered as a free informational service to the public and is not intended as legal advice. Laws vary from state-to-state, and in addition every situation is unique, and relevant facts may not be known. The answer to the question posed below may not apply to in your state or to your situation. For legal advice in your state and your situation you should consult with an attorney in your state who is familiar with the rules and laws in your state.
I signed an agreement with another person that stated that I would pay him $3000. We had the agreement notarized. After making a few payments, I lost my job and I can no longer afford to pay him. I am in the process of filing for bankruptcy. What are my options and what can happen to me for not paying the debt?
You should contact the other party and see if you can renegotiate the agreement. The other party may agree to lower your payments, provide you with a temporary payment forbearance, or continue to enforce the established agreement. If you do not pay the debt, the other party may sue you in small claims court to collect the balance owed.
Alternatively, you can include the debt in your bankruptcy estate, but the other party will be able to challenge the requested debt discharge. Depending on the circumstances of your bankruptcy, the debt may be discharged, or you may be required to pay a reduced amount to the other party over a designated period of time.
