I left the meeting feeling very uneasy

[Lethargic]

I had just written a whole huge thing detailing my 341 meeting but figured that it would be too long for someone to read so I deleted it and am just going to try to chop it down.

We were about five minutes into it and all the questions had been standard up to this point. He started looking into the bank statements.. specifically the one leading up into the last month before the filing.

Everything seemed fine until he came across a payment that I had made a couple of weeks before filing where i had paid my gf for rent. I just moved in 5 months ago and my gf gave me a couple of months to get on my feet before starting to pay rent. I had paid her for nov (late), dec (current) and Jan (next month)

Anyway, he asked me about it... a little more than 2,000 bucks.

"So it's just a coincidence that your girlfriend started charging you rent and then you filed twelve days later?" - trustee

"Well... yeah... kind of. She was just giving me a chance to get back on my feet and the agreement was that I would pay when I was able." (I work a sales job and commissions vary wildly so I got a good paycheck and I paid her).

"No further questions. This meeting is concluded." said the trustee.

"Thanks..." as I got up and walked away with my lawyer.

That's all the trustee said. I'm left to wonder what was going on. My lawyer says that he doesn't expect to hear from the trustee but my spidey senses tell me that he seemed a little nervous about it all.

So what are the chances that I'm going to be hearing from the trustee in the near future? What is the worst case scenario?

This was in Texas by the way (take your pick between dallas, austin, san antonio, and houston it was one of the four).

I just hope I don't have to feel this queasy for 60 full days! I won't make it!

[BobMango]

Well, the worst case scenario that I can imagine would be for the trustee to declare those preferential payments and go after your girlfriend for the amount. I'd be prepared for that scenario. I don't think you'd have any problems like dismissal or other more serious issues. Paying it in one lump sum just before filing really did throw up a flare and with no written agreement (I assume) it looks like you were trying to transfer cash to save it.

[frogger]

Well, the worst case scenario that I can imagine would be for the trustee to declare those preferential payments and go after your girlfriend for the amount.

Looks to me like it was a preferential payment. Your girlfriend probably needs to be gathering up her money to repay the trustee....

[AngelinaCat]

It looks like a Preferential Insider payment. At the very least you need to let the GF know about this in case the trustee does decide to go after those funds. If this does get ruled as a Preferential Insider payment, you may be given an opportunity to make up that payment yourself, instead of the trustee going after the GF.

I am not saying that this WILL happen, I am just presenting this as a possible scenario. This happened with us and a payment to a SIL and god-daughter.

Did your attorney know of this rent payment before you filed, or did he learn of it at the 341?

[Lethargic]

He knew about it and said out want a big deal. I mean my girlfriend was giving me a ton of crap about not contributing rent and she had been giving me a chance to get on my feet again after getting back to work.

[Lethargic]

The payment was made after my lawyer said it would be ok and two weeks prior to filing.

[MrSmithster]

Im on a more positive opinion. I wouldn't worry about it. Check Pacer to see if anything shows up in the mean time.

[Lethargic]

Yeah, I've been checking Pacer like it's going out of style. Nothing has changed since 1/17/11... my 341 was 1/27/11.

Too bad it hasn't been updated yet though I think I still shouldn't worry about not seeing any update to it.

I will keep you all posted though.

[Lethargic]

FINALLY.... report of no distribution hit pacer today.

I guess that means in the clear right?

That guy had me sweating!

[free2breathe]

Report of No Distribution is a sweet thing indeed

[justbroke]

Yes, the report of no distribution means that you remain a "no asset" case! This means there's no assets, like a preference, that the Trustee is seeking to recover on behalf of the estate.

Sometimes we think too much into things...