payments to family

[frustrated7]

I'm sorry to be such a bother with the constant questions, but I really appreciate everyone's help. In October of last year, my parents loaned us $2,000 so we could pay our property taxes. In early December, we paid them back the entire amount. I don't want the trustee to try to go after my parents for that money, since they need it for their own bills. When I mentioned it to the BK attorney, he said that as long as we waited 90 days after paying them before filing (file in mid-March) we would be fine, since the trustee only looks at what was paid in the past 90 days. But everything I have read on here says that the lookback period for family members is much longer. Can anyone help clear this up? I would be really upset, not to mention have furious parents, if we filed and my parents were sued for the return of that money. Thanks.

[fltoo]

Look back period for family members (insiders) is one year. The trustee can avoid that payment.

How did pay them back? Cash, check?

[relief13035]

CASH should be your best friend from here on out.

[frustrated7]

They loaned me the money in the form of a check and I paid them back with a check a couple of months later. It would be horrible if the trustee went after them for the money, because they were just helping us out so we could pay our property taxes without getting late charges added on. My parents do okay, but they don't have a lot of money, and they would be really upset and furious if they were sued to return that $2,000. Why would my attorney have told me that as long as it was 90 days later the trustee wouldn't look at it? Is it different for different states? It makes me question my attorney, and we are supposed to officially retain him tomorrow.

[Trixie007]

Possibly your attorney's experience is that the Trustee doesn't look at any records going back more than 90 days in your area? Maybe that's his experience with the local Trustee, so he's essentially saying don't worry about it, cuz they won't even ask? Seems risky.

[StartingOver08]

I don't understand why your attorney did not explain about insider payments. The BK code is very specific about payments to family members/friends. It is one of the questions on the petition and also my Trustee specifically asked if I had paid any family members any money within the past year.

Also at the 341 my Trustee went down the list of creditors and asked "Who is this" if it was a personal name and wanted to know the relationship (family/friend etc). I would be careful with this attorney you are considering. Have you interviewed other BK attorney's?