Transferred money explanations

[jtindisguise]

Greetings all,

I met with my attorney today regarding proceeding with my 7 and there are some problems. The biggest problem is I cannot explain why there are two large transactions between my bank accounts and my mothers. In Jan 07 I transferred 16K to here and then in Feb 08 I transferred 50K to her account. She is retired and I gave her large amounts of money to live off of because at the time I had it. Now, if I disclose or not disclose the money went to her I'm sure it will be reflected to a trustee in my back records. She does not have this money to pay back. Any advice?

[ansky0007]

I am no laywer but it would look like fraud to me. I would drag filing out as long as possible.

[Tbornetun]

It would look to a trustee that you were trying to hide money. 50k in February, a pretty big chunk of cash. They would file an adversary case against your mother to recover the funds. I would say wait as long as possible.

[HHM]

The 07 transaction is clear, the 08 "may" be problematic. If as you say, you had the money and were paying your creditors etc, you should be ok. However, far more information is needed. Feb 08 is not that long ago, what changed between then and now such that you had no problem giving your mother $50K and now you are on the verge of BK.

[jtindisguise]

That is pretty much what I thought. I spoke to her and she has some money but not all of it. What does waiting to file provide me?

[Tbornetun]

Time for the transfer to come off the radar. Meaning, the further back the transfer, the better for you. I have had trustees ask for 2 years of bank statements before. If by chance they should do that to you, you will have to explain and they could go after your mother for the money.

[magyar123]

February - your last transfer was 8 months ago. Hope and pray that you run into a trustee who wants to see only 6 months worth of bank statements.

[fltoo]

Least of your worries would be the trustee suspecting a preferential payment. You owed your mom money and paid her back. A look back of one year.

Worst case is a fraudulent transfer. You tried to get $50,000 out of your name.

I had the same scenario. Two lawyer consults recommended a two year wait for me.

You are asked if you transferred anything of value in the past two years and $50,000 is a transfer, so they will ask for more than 6 months of bank accounts if they suspect anything.

You could always take a chance, but I knew I could not lie out of pure fear.

[jtindisguise]

HHM The 07 transaction is clear, the 08 "may" be problematic. If as you say, you had the money and were paying your creditors etc, you should be ok. However, far more information is needed. Feb 08 is not that long ago, what changed between then and now such that you had no problem giving your mother $50K and now you are on the verge of BK.

I know that the February transaction would become an issue. You asked what has changed since February. At the time I was sitting on some savings. My mother retired early due to health reasons and I couldn't not help her. I still work and have earning potential and she does not. The payment to her is where my financial issues began. I could wait to file but how long do I have to wait till this 50K transaction is old news because I dont want my mother drug in on my problems?

[Tbornetun]

I would wait until March 2010, but that is just me. It is up to you on whether or not you want to take the chance. You could file tomorrow and the Trustee may not even ask for other bank statements. You will have to decide.

[debtmonster]

I would wait until March 2010, but that is just me. It is up to you on whether or not you want to take the chance. You could file tomorrow and the Trustee may not even ask for other bank statements. You will have to decide.

I agree. I would wait. Time is on your side. There's no rush to do a BK. Look at me and how long I've been wanting to do it and haven't.

I've had problems mounting for years and years. I still will probably not be able to file for at least 6 months as it is now.

[Tbornetun]

I tell people all the time, waiting won't hurt much, the debt isn't going anywhere. It will always be there waiting for you. It is always best to wait for the right time.

[jtindisguise]

Great advice everyone, thanks. The only thing I'm worried about is the law suit from Ford for my repossessed vehicle. If it were not for that I'd be in no hurry at all.

[NowImDownInIt]

What state are you in?

[jtindisguise]

Arizona