I have a couple house/mortgage questions...

[indebt00]

Payment to a family member in the past...what happens?

more questions for my family member...

they paid thier inlaws $10,000 back 3-4 months ago for money they gave them to put a down payment on their house. they bought the house last year.

they are still in the "we are thinking about it" stages of bk planning and would not file until Feb or March.

will this be looked at as a preferred payment or preferential?

thanks you guys !!!

[justbroke]

so....if they are giving it up....are they ok as far as not having to worry about additional income being used to figure out their payment??? the 6 month look back??

No. However, their attorney may need to explain their plan. When they file, their six-month lookback will include any income from the rental (if it's negative, then it won't impact the calculation of current monthly income (CMI)).

The disposable monthly income (DMI) would be calculated normally. Their attorney would probably not include the rental on line 47 (Form B22C) towards future secured debt (service).

I had an issue with mine. I didn't include the rental on Line 47 (Form B22C/Means Test), but did include the positive income from my rental (+$400). This messed up my DMI as I was actually negative DMI because my circumstances changed (I surrendered the rental). Even though i proposed paying $0 to the unsecured creditors, the trustee used my DMI from my submitted B22C Form!!! That's why I'm in dispute over my monthly payment. I should be paying nothing to the unsecured, but currently the Trustee is expecting to pay $3,600 over 60 months to them.

[indebt00]

thanks for the help and ignore the post before...I meant that to be its own thread...and I don't know how to edit it or delete it.