Preferential Payment

[vrspartak]

Hello,

Been reading about preference payments 90 days before filing ch7 bk. I'm filing, but my wife is not. My wife recently paid off a CC for $675. It was her debt and not in my schedules. However, it will show up on my bank statements as a payment of more than $600 to a creditor. Is that considered a preferential payment? I assumed it only meant payments I made to My creditors, no? Thanks

[despritfreya]

Sorry, but it is your debt. You are in a community property state. You need to disclose the payment on the Statement of Financial Affairs. The trustee may or may not go after it.

As a "warning". . . In addition to the debt you think is yours alone, you need to list ALL debt incurred and still owed since you got married regardless of who signed on the dotted line (there are a few exceptions to this - talk to an attny). You need to disclose ALL asset you personally own and/or you or your wife acquired since you got married (there are a few exceptions - talk to an attny). Lastly, if you do not have an attny, you really should get one.

Des.

[vrspartak]

Thanks for the response. had a consult with the attorney today and got a little confusing. Attorney said spouses income and assets do need to be included (which is next to zero as she is a homemaker) to determine the estate and for means test purposes. However, she said her CC debt does not need to be listed on my schedule as the accounts do not have my name on them. I asked if my wife can continue to use/pay off her CC, she said yes, so long as she is not filing with me....guess I'll get a 2nd opinion?

[despritfreya]

she said her CC debt does not need to be listed on my schedule as the accounts do not have my name on them. ....guess I'll get a 2nd opinion?

I strongly recommend that you do that - get another opinion. Again, community debt and community assets must be listed. Now, if you have a valid pre/post nuptial agreement such would change the analysis.

Des.