Originally Posted by madlondoner
Of course bankruptcy has everything to do with it. He has no money; he is busto. No one would go bankrupt to avoid paying a 20k non-legally binding bet. They would just come up with excuses to avoid paying it as shown by Lindgrun. I don't think you understand how much of a headache going bankrupt is.
Of course in an ideal world he would have the money and be able to pay, but he doesn't and there is no reason why his debt to Mizrachi should be ahead of his presumed debt to banks, credit card companies etc. A personal debt such as this shouldn't have priority over the no doubt much bigger sums he owes.
You're missing the point. DeMedici doesn't have to declare bankruptcy to avoid the debt to Mizrachi; he can just avoid it. There's no legal remedy for Grinder. If DeMedici doesn't want to pay, he just doesn't pay (see Lindgen, Eric). The bankruptcy is to avoid his legal debts. There's nothing to "get out of" when it comes to Grinder.
DeMedici is probably telling Grinder that to avoid an ass-kicking. "Look Mike, you're listed as an unsecured creditor - you're in line!". He was probably just hoping Grinder was dumb enough to fall for it. (A good bet, actually).