I loaned a friend (I know, bad idea) some money several years ago and we've gone through a few repayment arrangements, but he hasn't been able to pay me recently (owes me about $40K). He's recently told me he's going to file chapter 7 bankruptcy and include the debt he owes me. He says he has a condo project he is including in the bankruptcy as an asset that has about $2M in equity and he thinks he can pay off most of his creditors. My friend is an honest person, so I don't think he would intentionally screw me over, but I don't want to get blindsided by something that leaves me with nothing. Anyone ever gone through something like this and can offer any advice? Obviously 'get a lawyer' would be the first advice someone would give, but I want to be informed as much as possible on the matter so when/if I do decide to get an attorney, I know what questions to ask. And I don't want to get a lawyer and pay several thousand dollars to only get a few thousand dollars (or nothing) in the bankruptcy and end up worse off.
