My husband and I are just starting the process of BK (talking to attorneys, etc) and I have a question about insider payments. My husband lost his job last year and after taking a significant pay cut we were forced to give back our boat to the bank. Of course when they auctioned it off we ended up owing the difference. When the bank (Wells Fargo) gave us a settlement option we were not planning on filing for bankruptcy. We just found out it was an option for us due to some changes in requirements for husband's new job. Thinking we were doing the right thing in taking the settlement we borrowed the money from my mom to pay the settlement. This was wired from her account to ours and then directly out to Wells Fargo. I have the paper trail to prove amounts, etc. This took place in December 2008. We have made one payment to them so far for $300. How will this affect us in filing?
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Do not pay them any more money. The 300. is nothing to worry about.
So far, you are okay. File, then pay mom back after closing.
The money she gave you will be considered a gift and used for income. No big deal. -
Exactly right. Make sure to have the entire transaction handy in case the Trustee asks where you got the funds to settle with Wells Fargo.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..Comment
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