new bedroom furniture

[violetcat65]

Back in October I purchased a new bedroom set from Rooms To Go for approx $1700 under my mom's RTG acct. I have been sending payments to the account, not to her directly. My attorney advised me to stop paying as this is considered an insider payment. Would this still be an insider payment even though I am not paying my mother directly?

I have switched to paying by money order so it does not show up on my bank statement for now

Also how would i figure out the value of it if I wait to file till after July 1st, the personal exemptions are changing to $4000 and I do not own a house.

I will be filing in Florida and I am holding off on filing also because work is a bit unstable and I may have to change jobs at the end of June due to our company not getting enough new work to keep things going. Right now I am so stressed out about work I don't even want to deal with the bk right now.

[lrprn]

My attorney advised me to stop paying as this is considered an insider payment. Would this still be an insider payment even though I am not paying my mother directly?

As far as I can tell with the info you've given us, all you are doing is paying one of your mother's bills for her. Is your Ch 13 case filed and confirmed already? Or are you in the pre-filing prior 90 days phase? If you are pre-filing, then I can see how your lawyer is interpreting this as an insider payment. You are paying your mother's bill for her instead of paying your other creditors. As long as you are not paying this credit card of your mom's more than $600 total over the last 90 days before you file, that 98% removes the suspicion of insider payments. Are you paying more than that?

Many filers owe money to their families when they file. In most cases, the debt is listed and discharged with an agreement to pay the family member back during the Ch 13 when the money is available and in full when the Ch 13 is over. Would that work in your situation?

Also how would i figure out the value of it if I wait to file till after July 1st, the personal exemptions are changing to $4000 and I do not own a house.

No matter when you file, you estimate the value of the bedroom set as how much you could get for it at a garage sale. The average American household has a total of $3-4,000 worth of goods, including furniture, appliances, clothes, kitchenware, etc. Don't make things harder for yourself by over-valuing your belongings and furniture unless your lawyer tells you to estimate the values higher than garage sale or eBay levels.

Right now I am so stressed out about work I don't even want to deal with the bk right now.

So sorry to hear about all your troubles, violet. Hang in there, and remember we're here any time you need to vent or need a virtual <hug>!

[violetcat65]

I haven't filed yet, I am in the process of getting the paperwork ready to give to the attorney. I want to hold off filing until after July 1st because I will at least have the work situation resolved one way or the other. Also the personal property exemption will increase to $4000 instead of $1000 after July 1st so every little thing will help.

[CindyLou]

If your mother purchased the bedroom set on her card, then she owns it not you. You are buying it from her, but you do not own it, therefore i would not consider it yours.

[DivorceRuinedMe]

If your mother purchased the bedroom set on her card, then she owns it not you. You are buying it from her, but you do not own it, therefore i would not consider it yours.

I was just going to post the same thing. I would think that it would be a good argument at least.

[SinkingFast]

I was thinking the same thing. Mom bought the furniture so technically it's her property. You could claim the furniture belongs to someone else that you are holding on their behalf. There's a place on the BK paperwork for you to disclose that information.

Depending on how much you're paying in monthly payments,......... You could cover the amount in other areas of your budget on Schedule J. Allow a little more for food, or clothes, or add in for work lunches, or extra on your medicals.