Paying a family member

[Stilltheone]

We actually had a legal contract that we had signed with my MIL. I think the total we had paid her about $125 with the total owed being $1500.

When we filed, we had to list her and our attorney said the likelihood of the trustee trying to get the $125 was slim.

To make a long story short, we listed her and now she doesn't speak to us. We never paid her back the remainder of what we owed her and she can't even ask us about it because it's illegal to talk to us about the "balance" LOL

Good luck to you!

[music12]

i wouldn't deposit anything in your bank account on the eve of filing; they may ask for the bank statement that includes the date of the filing, and then ask lots of questions.

[AngelinaCatHub]

Nothing has been filed yet and I have not met with the trustee at all. So, I guess I was thinking if my mom could give me some of it back and then I could deposit it into my account, then it would be like it never happened. Of course, that would all depend if my lawyer would allow me to change my paperwork before it got filed. This would be FRAUD and since you know that, the Trustee would not be to pleased. This would hurt you far above what you think. Listen to your lawyer, do NOTHING without his advice. I was unable to give the lawyer a call back today (my son had some minor surgery, so I was a little pre-occupied today), but I figured I'd bring the subject up and if he says no, then I'll have to pray that it works out with the trustee. I really need to get the filing process started now, because one, I have been served papers from one creditor (which I submitted some form to delay it in April) and two, I'm thinking of moving to another state if things work out with a new job. So, waiting a year from when I gave my mom money is not much of an option right now.

'ms' you already stated this. Several of us stated not to transfer anything as well as if you asked your Mother to give back what you paid her, it would not change a thing as a "preferential, insider" payment. They would only hold the money in your account against you and then you just may lose twice. 'Hub

[AngelinaCat]

I have to add to what 'Hub posted: Your lookback period is at least SIX (6) months, and is generally a year or more regarding 'preferential insider payments', depending on the district, the trustee, and the situation. That means you have to be able to present your bank statements for any period of time that you may be asked for. Switching all this money around is likely to raise 'red flags' everywhere.

If you are concerned about 'preferential insider' payments and how it will look, you need to seriously consider waiting at least one year from the date of the transaction before you file--and make NO OTHER TRANSACTION WITH MOTHER in the meantime.

One member is having to wait TWO years to file, because of some transactions her father did with her bank account w/o her knowledge until after the fact.

Good luck to you~~~

[pa308]

You could always wait to file until the lookback period for preferential payments has passed.

If you are sued, the judgement can be wiped out in BK, and you can always answer the complaint and stall the lawsuit a little.

I had the same type of issue and this is what we did, waited until the lookback had passed to file. Fortunately it wasnt long to wait and there were no suits in process.