Preferred payment?

[cathywhite4495]

I have an odd situation and I don't know if it qualifies as a preferred payment. I was owed a stipend by my employer but it did not get put on the check I was expecting so my boss gave me the money I was owed as a personal check. The stipend was put on my next "official" paycheck and I paid her back. Does this count as a loan and do I have to report it as paying a preferred creditor?
Also, I can't wait 90 days because I have somebody starting garnishment proceedings and no way I can afford that. So, if it does count as a preferred payment, what happens? I don't want my boss dragged into my bankruptcy!
Thanks

[HHM]

Just to make sure I understand....

1. You had a stipened due...
2. Your boss gave you a personal check to cover the stipened because the payment did not hit when it was expected
3. On the next pay period, they withheld that amount...(or you voluntarily paid your boss back)

Is the transaction all said and done, you have paid your boss back, yes?

If so, don't list anything. You will be fine...

[CindyLou]

It also depends on how much money you are talking about?

[cathywhite4495]

You got it right. It was a $1000 - that's what's making me nervous.

[HHM]

Don't worry about it, worst case scenario, it is an payroll advance, and that is a not in the same class as other unsecured debts, you will be fine not to mention it.

[cathywhite4495]

Thanks for your advice! I think I'm ready to file this thing and get my life back.

[NewDawn]

I'm wondering if this situation would be considered a preferred payment. My husband had some steer tires that badly needed to be replaced on his tractor. They cost about $1,000, and his mom deposited this amount in our checking account and the next paycheck we paid her back in full.

Is that considered a preferred payment?

[HHM]

I'm wondering if this situation would be considered a preferred payment. My husband had some steer tires that badly needed to be replaced on his tractor. They cost about $1,000, and his mom deposited this amount in our checking account and the next paycheck we paid her back in full.

Is that considered a preferred payment?

Yep, that is without a doubt, a preferential payment. It might just be small enough that the trustee won't go to the effort, but it is large enough to require disclosure on your Statement of Financial Affiars.

[NewDawn]

Okay. I should have explained earlier a little bit more about our situation. The tires were for my husband's 18-wheeler truck that he owns and operates as an independent contractor. The company he has an operating lease with owns the 53-foot trailer and he supplies the truck in order to haul freight.

The tires were absolutely necessary for the safe operation of his truck. The tires he previously had on had no tread depth left on them, and it was critical he get the tires. I certainly don't think this would be considered a luxury purchase. In fact, this same $1,000 that his mom deposited into our checking account was also subsequently deducted from our checking account via debit card by a company called Meridian, which gives him a discount on the Bridgestone/Firestone tires. Our debit card is what they use to deduct the cost of the tires from his account. The money his mom gave him was simply to advance the money that he knew would be subsequently deducted by Meridian to pay for the tires. We do have the tire receipt as well.

I thought I read somewhere that loans in the ordinary course of business were outside the preferential payment laws. I am so confused now at this point. Would the trustee actually try to sue to get the money that was paid to Meridian for a tire purchase? Wouldn't that be considered theft of services?

We already filed and we truly didn't think retailers/merchants to whom we made purchases paid in full on a debit card would be considered a creditor in the first place. I guess our trustee is going to yell at us thoroughly. I don't know what to do now.

[AngelinaCatHub]

You can amend your schedules if you need to. It costs around $26.00 to amend--and I believe that is a one time payment no matter how many times you amend. Be sure to keep all the paperwork in case the trustee asks about it. If you aren't asked, don't volunteer the information. Do you have an attorney? If so explain the matter to him or her.

Good luck!

[NewDawn]

No, we don't have an attorney. We filed pro se. I hope bringing the receipts just in case he asks will help clarify the situation. We were still making minimum payments to credit cards until the end of November. We filed December 18. We weren't in any way trying to stiff creditors (credit cards). We just couldn't afford to maintain safe operation of the truck, household expenses and also make minimum payments on time anymore, hence the need to file.

Will it look better if we amend the statement of financial affairs or just explain it if he asks?

[NewDawn]