OK, this is a bit of a mess. I use my boyfriend's mothers credit card to purchase business product. My supplier only accepts credit cards and I don't have one...I do have a check card, but often have to order product before the income from my credit card sales hit my account in order to have it in stock in time to sell it to the next person. You know, the old it takes money to make money hangup. I'm slowly moving out of that predicament and into better cash flow, but this situation has been a business saver and has kept me afloat.
Now I'm filing chapter 13, and have a history of writing her $2-3k/month in checks for this product. Giving this situation, how will the trustee see the payments to her? My fear is they will view it as a loan, and the payments as 'insider payments', which would be a HUGE MONGO GIGANTIC ISSUE for obvious reasons. These are legit ongoing business expenses, it's just that she's buying the product on my behalf to help me keep my business going.
Technically, the product is ordered in her name, comes to her house, I pick it up from there and I write her a check (or two) every month. I pay her off each month, so she won't be a creditor when I file. So one way to look at it is that I'm buying the product *from* her rather than reimbursing her.
Question is, will the Trustee see it that way? I'm going to run it by the attorney I am meeting next week to get the ball rolling, but was hoping for some input from the Bankruptcy Forum Brain Trust.
Thoughts? This is all so frustrating...you do what you can, and then all these little things creep up that show you've made even more bad decisions/mistakes. Ugh...
Now I'm filing chapter 13, and have a history of writing her $2-3k/month in checks for this product. Giving this situation, how will the trustee see the payments to her? My fear is they will view it as a loan, and the payments as 'insider payments', which would be a HUGE MONGO GIGANTIC ISSUE for obvious reasons. These are legit ongoing business expenses, it's just that she's buying the product on my behalf to help me keep my business going.
Technically, the product is ordered in her name, comes to her house, I pick it up from there and I write her a check (or two) every month. I pay her off each month, so she won't be a creditor when I file. So one way to look at it is that I'm buying the product *from* her rather than reimbursing her.
Question is, will the Trustee see it that way? I'm going to run it by the attorney I am meeting next week to get the ball rolling, but was hoping for some input from the Bankruptcy Forum Brain Trust.
Thoughts? This is all so frustrating...you do what you can, and then all these little things creep up that show you've made even more bad decisions/mistakes. Ugh...
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