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Cheapo tells his good friend Gullible that he needs to borrow $10,000 right away so he can keep his Hummer SUV from being repossessed. Gullible
Cheapo tells his good friend Gullible that he needs to borrow $10,000 right away so he can keep his Hummer SUV from being repossessed. Gullible says he will do it provided Cheapo provides some information on his ability to pay back the money. Cheapo tells Gullible he has a weekly workers compensation payment of $500 that he will assign to Gullible, and that Joe Schmoe owes him $5,000 under a promissory note that he will assign also. Gullible based on these assignments being made in writing to him allows Cheapo to borrow the money and also has him sign a promissory note. Cheapo immediately defaults on payment and now Gullible learns that Cheapo also filed bankruptcy. Can Gullible sue Cheapo for the balance due? Can he enforce his rights to the assignments for the workers compensation benefits and to the Schmoe note? What if Schmoe tells him when contacted that Cheapo already assigned his payment to Bob? Explain the basis for your response.
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