Paying back family question

[crescentmoon]

In early January, my mother took out a cash advance on a credit card in order to loan us some money so that we could make our mortgage payment that month. We agreed to pay her back over a period of time, and we pay her back, and she sends a check to her credit card company for the full amount that we give her each month.

When we got our tax return, we gave her a larger amount than usual ($500), and continued with our regular payments of $100. When I met with the attorney yesterday, he mentioned that I would have to list her as having given insider payment, which I understand. However, is the trustee going to come after my mother for this money? It wasn't like we paid her and didn't pay any other creditors. We were paying everyone the same as we always had been.

My parents are on disability and she took out this cash advance just in order to make sure we were able to make our mortgage payment. She doesn't exactly have all this money lying around. Any money I've given to her went straight to the credit card company. Any thoughts?

KBB

[keepmine]

Payments to an insider within a year of filing can be recaptured by the trustee.
If you were paying a $100/month for less than a year, it may not be worth the trustees time. Ask your lawyer how this may play out in your district.

[shabam]

What amount in total did you pay back to her?

If it's under $1k, I don't think the trustee would waste their time.

[crescentmoon]

We've paid back $1500.

KBB

[OhioFiler]

You were paying here just as you were paying your other creditors. I doubt the TT will be concerned.

[music12]

right, if you didn't pay much more to your mother than you paid to other creditors, there would be little point for the TT to go after her. and $1500 is small and not worth going after (unless you get an especially nasty trustee; i think that happens rarely).

[Pizza]

From what I understand, the trustees are more interested in LARGE transfers, for example, cleaning out your checking account, loading up major appliances and jewelry, and giving it to someone else. The presumption of abuse would arise because a sly filer could 'give' it to someone else to hold for them until the BK is over, which if proven, would be a definite red flag for fraud/abuse.