Can bankruptcy help me?

Letter to “Ask Leon”

Dear Leon:
I was in dire need of a loan to pay off other bills. I turned to a friend who agreed to wire money into my account. I’ve known this person for quite some time and trusted that she wouldn’t do anything to harm me. In a few days she deposited a check into my account. I withdrew some money out of my account and gave her some money from what she deposited. A few days later I got a statement from my bank saying that I was almost $5,000 negative in my account. It turned out the check she deposited in my account was stolen and a friend of hers forged my name onto the check and deposited it into my account. I went to my bank and asked them if there was anything I could do. They told me that the only thing I could do is pay off the $5,000 within a week, or else my credit would be ruined for life. I have evidence that the check that was deposited into my account isn’t signed by me. The bank said that since I withdrew money, nothing could be done to help, and now I owe the bank $5000.
I am curious to know if filing bankruptcy would help me in this situation or not. I do not have the money to pay off the account my self, so I am looking for a way to help myself. I am behind with other bills and they are all piling up on top of me. Please give me your advice on what you think would be best. I would greatly appreciate it.

Sincerely,
Christie

Leon Says…

Dear Christie,
In my opinion a bankruptcy will probably get rid of this debt, provided that you were not involved in the fraud scheme. The bank can prevent you from discharging a debt that you made under fraudulent circumstances. Have you shared the info with the bank as to the identity of your friend and her whereabouts? It sounds like she is part of the fraud ring, and she may have taken advantage of you. Keep in mind that the bank is the real victim here, not you, because the bank lost $5K in this scheme. Didn’t you find it curious that your “friend” is depositing a check into your account, and then taking back some of that money? It sure sounds “funny” to me.