paid brother to fix bath tub

[luvu283]

I paid my brother to fix my bath tub 400 dollars. He works for my dads construction company but i paid with check under the table directly to him, is that going to cause problems when i file in beginning of may?

[kathy4530050]

I hope not! because I did something similar. I paid my sister $1,000 to do my bookkeeping over a period of several months. She has a regular, non-bookkeeping job, but knows Quickbooks and does this on the side. Just like your brother, I hired my sister because she knew what she was doing and I trust her. And, just like you, I HAD to hire someone, right?

[relief13035]

$400 shouldn't be a problem. Not so sure about the $1000

[lrprn]

Luv, the $400 to fix the bathtub should be fine - it isn't paying an existing debt, it's paying so necessary household repairs can be performed.

Kathy, the $1000 for bookkeeping should also be fine - it's paying for a business service, not giving preferential payment on an existing debt owed to an insider family member. If you and your sister have a written and witnessed agreement for her professional services, that would be best just in case your trustee does ask about it.

If both of you can prove the repair and bookkeeping services were performed and were the going rate for this type of service in your area, then it's very unlikely your trustee is going to care. Still, please discuss this with your individual lawyers or during your intial consultations with bk lawyers to ensure this is the case in your situation.

[kathy4530050]

IRPRN, my sister and I have not had a written and witnessed agreement--any way to amend that now?

[lrprn]

IRPRN, my sister and I have not had a written and witnessed agreement--any way to amend that now?

Can you prove three things:
- She performed the bookkeeping services in question.
- No matter what bookkeeper you hired, you would have paid that person the same (or more).
- She did not officially bill you for her services creating a debt that you paid with the $1K while you weren't paying other creditors.

If you can prove all three, then that should show that this wasn't an insider preferential payment to your sister if this $1K payment ever gets questioned.

[kathy4530050]

The only thing I don't know if I could prove is that SHE performed the services. How do I prove that? I gave her a huge box of records and receipts and she entered everything into QuickBooks, but she didn't have to log in with an id or anything. Do you have any idea how could I prove that she actually did the work?

[OhioFiler]

The only thing I don't know if I could prove is that SHE performed the services. How do I prove that? I gave her a huge box of records and receipts and she entered everything into QuickBooks, but she didn't have to log in with an id or anything. Do you have any idea how could I prove that she actually did the work?

Just be truthful with your attorney and the trustee and you'll have no problem. Your sworn testimony will satisfy thr trustee if you're honest.

[kathy4530050]

Great. That works. Thanks.