Payday Loans

[kw1025]

I am getting upset. My attorney emailed me today and said that the money i borrowed from friends is concerning. I borrowed $15,000 and paid back $18,000 with 5 months, with my tax return. He is concerned about a "usary" issue, meaning that the trustee could go after my friend for the money due to loansharking type interest rates that are illegal. Anyone have any experience with this?

[kw1025]

By the way, i have NOT filed yet. My attorney is just anticipating things that may come up based on the background i gave him. I think he wants to play it safe.

[music12]

well, that's some friend who gives you $15,000 and gets $18,000 back in 5 months. with friends like this who needs enemies?? i wouldn't mind if the trustee went after this so-called friend for the $3000 difference.

[justbroke]

Forget the whole loan sharking issue. If you paid your friend $15K on $15K loaned (just to make it nice)... and you didn't pay your unsecured creditors... it is a preferential payment. The Trustee would go after your friend for it, if this was done within 90 days of filing (the payback). Now, if this is a very close friend, roommate, or you ever had business with this friend, or this was a business "type" loan, you could get one of those Trustees who go after your friend as an "insider". Insider payments can be recovered by the Trustee for transactions up to one year before you file.

When did you borrow this money and when did you pay it back? How close is this friend? Did you live together (as a couple or otherwise)? Did you ever have any business relations with this friend? Was this business related?

Usury rates... LOL... maybe someone should talk to those guys at the PayDay loan companies (245%+ interest) or those guys in Wilmington Delaware with 33% interest (APR).