College = preferential payment?

[Beeheery]

Hi everyone,
My summer tuition for school that starts next week is around 3K. If I withdraw that amount of my checking and pay the school directly with those funds and save the receipt, would that be OK? I will most likely receive half that back through financial aid. I am just not sure how this would be seen by the trustee since I could use that $ to pay my creditors but am instead using it for school. I would just hate it if the trustee tried to get the funds back from my school and then they dropped me or failed me because the money was given back. Anyone who has done this or knows how I should proceed, please let me know.

[keepmine]

This is no preference issue. The college is not a creditor.

[Beeheery]

But wouldn't the trustee look down on me saying how can I pay college when I cannot pay the creditors who I owe money too? I assume it would be OK since I am using my $ for education and not vacations etc, but it will be close to 6K total after Fall semester is paid for.

[Kkole425]

I just went to my lawyer today and we will be going into Chapter 7 soon. I am going to sign up for classes tomorrow. My lawyer told me to go for it. If I have the money or can find the money to pay for it do it.

[catleg]

I've got news for you, even if you went on vacation there isn't much they could do.

[keepmine]

You're not under the trustees control. As long as the payment isn't a preference or to an insider {family member or friend} there is no issue.

[Beeheery]

Wouldnt they say it was abuse if i spent all my checking on vacations?? isnt that fraud? or is it only if you charge it on a credit card? does anyone know if my financial aid is considered income even though it just cancels out what I paid? i didnt make a profit. I just break even. Thank you again.

[Beeheery]

Also, if I do happen to get any leftover money when my fall finaid is dispersed, do trustees have claim to that? I assume it would be considered income but since it is educational, i would think there might be some sort of an exclusion for it so they couldnt touch it.

[Sham11801]

check your states exemptions, your checking accounts (cash) might be exempt up to a certian amount anyway..the trustee wouldnt find it worthwihle to try to recover money that he'd have trouble with to begin with