Large Deposit Before Filing

[fltoo]

Fraudulent transfers, whether intentional or not, are not pretty.

I am in the same situation due to an innocent family transfer of funds. The look back period for an insider (family member) is two years, not one year as some of the internet sites state. If the trustee suspects fraud, the look back period can even be more than two years. Reversing the transfer does not fix the situation. In essence, you are reversing the transfer when your dad takes the money back.

I was in shock at first, to say the least, but having to wait the two years was really not that bad. My two years is up in Oct. of this year.

There are others here having to wait out the two years. Maybe they will chime in.

If your lawyer does not figure out a way around this, you are looking at waiting two years to file.

I am hoping that your lawyer finds a way out of this for you, but then, your father having to explain why he did this for business purposes might be the worse scenario.

But, calm down and do what you have to do. This is only a financial problem and not life threatening. Life is way too short. There are ways to hold off for two years. Although many bk's are quick and dirty, many people have to face the two year wait.

[Flamingo]

Sorry for the confusion everyone, I was typing in jumbles probably cause I'm freaking out.

Here's the story in one paragraph. Since January 2008, I knew I was going to file. I stopped using my credit cards as suggested & just made payments. Now I'm late about 2 months. My dad doesn't know about my financial troubles & will not help anyway.

He had some proceeds or something to do with his business going into a 1 month cd using my social & name. It is NOT a gift to me, he is taking it out end of July (corrected my post above) & will be using it for his business.

I went to the bank & signed the papers. I came up with excuses for reasons why I can't get a deposit on my account but my dad talked to an accountant & said I didn't have to worry legally. I made up some excuse about some loans & stuff. I can't tell him I'm filing bankruptcy!

So I never had this money. It's just sitting under my name right now. I am worried sick because I was told I can never file now, or at least for a few years!

I will call the lawyer I had a consultation with a few months ago & ask for his advice. I'm really freaking out & with these creditors calling me, it's not helping.

What's done is done and what is happening right now is that you have $100,000 sitting in your name even though you state it is your father's money. It is not your father's money right now it is in your name. For whatever reason he transferred that money to you (I am assuming he is trying to hide profits or something from his business by putting them temporarily in your name). That action has now put you in a whole heap of trouble because of your present situation. If you had already retained an attorney for your filing, you could have consulted with that attorney before signing those papers or you could have come on here prior to signing and got some advice as to what you could have done. We all make mistakes but sometimes there comes a time where you just have to open your mouth to protect yourself. We are all adults on here who either are or have been in a bad financial way and we all make mistakes; but family is always family and while they may not like it at first if you are in financial trouble and have to file bankruptcy, they will not hate or disown you for it. I feel from what you have posted that you are afraid of your dad and that he does well in his business and that you feel like a failure in his eyes because of your situation and cannot tell him. If he loves you, he will not care.

Best of luck to you - I hope you can get this resolved after speaking with an attorney.

[banca rotta]

Fraudulent transfers, whether intentional or not, are not pretty.

I am in the same situation due to an innocent family transfer of funds. The look back period for an insider (family member) is two years, not one year as some of the internet sites state. If the trustee suspects fraud, the look back period can even be more than two years. Reversing the transfer does not fix the situation. In essence, you are reversing the transfer when your dad takes the money back.

I was in shock at first, to say the least, but having to wait the two years was really not that bad. My two years is up in Oct. of this year.

There are others here having to wait out the two years. Maybe they will chime in.

If your lawyer does not figure out a way around this, you are looking at waiting two years to file.

I am hoping that your lawyer finds a way out of this for you, but then, your father having to explain why he did this for business purposes might be the worse scenario.

But, calm down and do what you have to do. This is only a financial problem and not life threatening. Life is way too short. There are ways to hold off for two years. Although many bk's are quick and dirty, many people have to face the two year wait.

That is correct. I was thinking about a preferential transfer which is only 1 year. Thanks

http://www.bankruptcylawblog.com/other-nationally-significant-cases-effective-dates-for-the-bankruptcy-abuse-prevention-and-consumer-protection-act-of-2005.html

Amendment expanding the look-back period for fraudulent transfers from 1 to 2 years and expanding the definition of fraudulent transfers to include certain transfers to insiders not in the ordinary course of business: section 1402.

[danaf]

Wow - really strange that he asked you to do this. But now it's done (and if I were you or anyone else reading this) - I would suggest not doing this ever. It's not your fault. He's your Dad, and I know it is hard to say no to parents. BUT - if he's doing something illegal, not saying he is but why else would he have asked you to do this?....now you are implicated. Not to mention, it screwed up your plans to file. Two years is not so long to wait out. Can you move to Texas? Wages can't be garnished in Texas. You can easily wait out 2 yrs there.

[banca rotta]

Sorry to keep jumping in but this is a rare situation.

Despite what the accountant said won't you and your father also be looked at by the IRS? Everything over 10k deposited is reported to them especially with the patriot act.

Sorry, don't mean to scare you, I'm just curious as to how they will look at this even without the bankruptcy.

[krispy12]

This is the decision I put myself into. I honestly didn't know it was going to be such a big deal when I did this.

Is it always definitely 2 years? Yikes, what do I do about cc payments meanwhile? Do they still report you if you keep making at least 1/4 of the minimum payment?

I have at least 6 credit cards. If I'm going to make a payment I want to pay them all so I'd have to pay each one a little than just pay one company my whole payment.

[banca rotta]

This is the decision I put myself into. I honestly didn't know it was going to be such a big deal when I did this.

Is it always definitely 2 years? Yikes, what do I do about cc payments meanwhile? Do they still report you if you keep making at least 1/4 of the minimum payment?

I have at least 6 credit cards. If I'm going to make a payment I want to pay them all so I'd have to pay each one a little than just pay one company my whole payment.

It's 2 years if it's a transfer such as you giving an asset away to an insider. It could be more in rare cases.

This is only my opinion, but your case sounds more like a preferential transfer. Your father simply loaned you 100k and you paid him back! If you pay back any insiders within a year of filing the trustee will go after it. It's not illegal though.

You need to consult several GOOD attorneys and see if your paying your father back is a preferential transfer which will require waiting just over a year or a potential fraudulent transfer.

As for the creditors your phone will ring for a while and probably within a year they may sue you depending on the balances.

[krispy12]

Wow - really strange that he asked you to do this. But now it's done (and if I were you or anyone else reading this) - I would suggest not doing this ever. It's not your fault. He's your Dad, and I know it is hard to say no to parents. BUT - if he's doing something illegal, not saying he is but why else would he have asked you to do this?....now you are implicated. Not to mention, it screwed up your plans to file. Two years is not so long to wait out. Can you move to Texas? Wages can't be garnished in Texas. You can easily wait out 2 yrs there.

I am in Texas already. So when I get a job, they won't be able to garnish wages in Texas?

I'm confused about judgement proof right now...reading up on that.

Also this preferential transfer? I'ma be up all night reading now.

[danaf]

I can't answer all your questions but what I do know that Texas is one of the best states to be in if you're gonna file bk ie, most debtor friendly. So Yahooo! that you already live there. I wish you the best of luck. (and am sure this will turn out fine for you so don't stress).

[epiphany]

Anyways, other than your relationship with your dad, you don't really have a lot to worry about. Just completely disclose everything to your attorney and the trustee and let the chips fall where they may

How can you possibly say that without knowing all the facts?

Bottom line is, the OP needs to find out why her Dad put that in her account, instead of his. It doesn't sound likely that her Dad would sign an affidavit saying that he put that in her account because of anything illegal. If there is something shady there, and it certainly sounds like there is, then that has to be considered.

Technically, it is her money at this moment in time, whether or not she knew of any possible crime...

Ignorance can be a hard thing to prove. I'd think it would be even more difficult since the depositer was family member. The OP may have to look into a criminal attorney before looking into a BK attorney. The first thing she needs to figure out is why that transfer was made and whether or not it was legal. Her BK considerations are secondary to the possibility of being accused of fraud or money laundering.

Sorry Krispy, to sound so harsh, but I really do think you need to cover your butt. I really do wish you the best of luck and hope you can straighten this out, but you are going to have to be rapidly proactive. It really does sound like you've been used and you need details.

I hope you come back soon and tell me I was wrong and to go pound sand. I really would like that.

ep

[Flamingo]

I agree with Ephiphany. As in any legal situation, what is the issue (here I go back to Paralegal class - LOL!). I am just trying to knock out all the guesswork that comes with any situation...you go for the core. The issue is will the $100,000 transfer between family members (to the OP and back to the father) prevent the OP from filing BK? IT's not about the father and his financial situation. The OP needs to consult with an attorney and for that appointment needs to find out exactly why she was asked to put that money in her name for a certain time and return it to her father. The answer to all that will determine her outcome. I believe the OP knows exactly what is going on (and can't say no to dad) and doesn't want to discuss it on here but is trying to find out if the monetary transfer can hurt her filing. Expert legal advice is the only thing that can help her now.

[Flamingo]

This entire thread has become overblown, now bordering on criminal issues....read my previous post which sums it up for the OP.

[fltoo]

Overblown? Got that right, LOL.

OP, go see a BK attorney and tell him about the deposit. He will either come up with a solution or advise you to wait. Your dad does not have to be involved at all.

If you have to wait and have no assets (money in bank, etc.) just stop paying cc's and prepare yourself not to let the phone calls bother you.
Worse that can happen in your case is a judgement, but happily TX cannot garnish wages. Believe it or not, judgements rarely happen. When you do file, the judgement will be wiped out along with the debt anyway.

Keep the emotions that lead to stress under check and you will be fine. Time will heal all.

[krispy12]

My dad sold something in his business & I believe the person who bought it just transferred the money into my account that I opened up for my dad. I believe my dad is trying to save some money on taxes, he has a legit business.

I will let you guys know if I get to talk with the bankruptcy lawyer. Hopefully he's working today.

I appreciate all the help you guys are giving me. It means alot, thanks.

[ssdsco]

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