Should I leave gf before she files?

[teddyselkirk]

I have lived with my girlfriend for 2 years or so. She had a job as an airline counter person which she lost and exhausted those benefits a long time ago. We also had a small business together in the past that was unprofitable, so we ended that about 6 months ago.

She owes a great deal of money to two ex-friends who basically hate her b/c of it seeing they lent her about $40,000.

Anyway, she is about to file Chapter 7.

On the other hand, I recently started another business venture that is showing some promise. The girlfriend is not involved.

My fear is that I am positive one of these friends will object to the bankruptcy and claim my girlfriend is either hiding money/ assets with me. While angry, one of them already accused her of this. (Not true).

What can the trustee or this person do? I don't want people poking around in my life and finances. I'm not involved in this. On the other hand, I do live with her. We know what I contribute to the house will be considered, I just want to know what any objecting creditor can do beyond that.

I don't mean to be shallow, but is breaking up and moving out my best option here? I don't want to do that, but I don't want to be harrassed by psychos creditors and have my privacy violated by a bunch of officials.

What can they do to me?

Thanks

Ted

[JRScott]

At most the trustee would request bank records especially of joint accounts and of the joint past business venture. Assuming nothing alarming there he'd not do anymore than that.

The loans she got was that for the joint business, was it in both your names or just hers?

[teddyselkirk]

The accounts were in her name originally at her insistence. Later when the accountant told her why do this when we were incorporated, she opened a business account.

The new business that is mine has nothing to do with her. Can they demand info about that one?

[teddyselkirk]

I mean how does this work? Anyone off the street can make accusations of a transfer and they research it?

[OhioFiler]

I mean how does this work? Anyone off the street can make accusations of a transfer and they research it?

The trustee is not on your side. The trustee's responsibility is to determine if there are any non-exempt assets available for distribution to the creditors. If someone raises a claim that your girlfriend is hiding assets in your business the trustee will look into it. Breaking up with her will have no impact on that process.

[teddyselkirk]

Thanks Ohio, I recognize that the trustee is not on my side. My other concern is that the other business was in our name, but what little money came from that flowed into an account that was in her name, and then she paid me, the business' invoices and bills.
It was later swicthed over.

So what you are saying is that I should have never let her do it that way and that any payments made to me by her account could get me in trouble as some sort of fraudulent transfer, even though it was really a payment from the business?

If I show it was really a business payment to me for salary, would that get me out of hot water?

Also, they subpoena bank accounts in my name? How does all of this work?

I am confused.

[OhioFiler]

Thanks Ohio, I recognize that the trustee is not on my side. My other concern is that the other business was in our name, but what little money came from that flowed into an account that was in her name, and then she paid me, the business' invoices and bills.
It was later swicthed over.

So what you are saying is that I should have never let her do it that way and that any payments made to me by her account could get me in trouble as some sort of fraudulent transfer, even though it was really a payment from the business?

If I show it was really a business payment to me for salary, would that get me out of hot water?

Also, they subpoena bank accounts in my name? How does all of this work?

I am confused.

What I am saying is the tt may choose to examine her business dealings and your business dealings. Any payment to you may be examined as an insider payment. I am more concerned with your new business. Does your new business have any equity? Is it similar in scope to the business the two of you ran jointly?

[AngelinaCatHub]

Teddy, if your Nick is a composite of your real name, I would change it and ask the Mods to rid it here. Not to give your ID away to the Public.

Another thought that hit me on your first post. I'm not judging you and your concern but one good reason for marriage is called commitment, both legally and morally. You have been "together" for two years. I assume you have lived conjugally. What happened to "in good times or bad...till death do us part.....etc."?

Back to your question, that is your business to leave gf for your own reasons. It will not help you in bk as far as joint business accounts. It will probably make her a third ex-friend and she MUST under perjury tell her financial history for the last six months at least. Whether you wish to be or not, are a big part of that, since I assume she is living under your roof and eating your purchased food and all of that. They cannot go into finances after the 341 (except for fraud or a windfall you/she must report) and from the 341, she is fairly frozen in time. This vast amount of money loaned by friends (I would be quite upset too) what was it for if not the business, and if not the business, why the business account. Please clarify this.

More info, better help and advice. 'Hub

[jribe]

how long ago did the businesss transfer occur? And was she already contemplating BK -and importantly did her "friends" know this?

There would be some issues if the above is true.

As others have posted- breaking up or moving out won't affect you in regards to being examined. It sounds like her ex-friends are bitter (and with right) and if they know ANYTHING i am sure they will use it. This could hurt you too. Unfortunetly the only advice is to have you GF use a good BK lawyer, and you'll likely want to consult with a lawyer as well.

Thanks Ohio, I recognize that the trustee is not on my side. My other concern is that the other business was in our name, but what little money came from that flowed into an account that was in her name, and then she paid me, the business' invoices and bills.
It was later swicthed over.

So what you are saying is that I should have never let her do it that way and that any payments made to me by her account could get me in trouble as some sort of fraudulent transfer, even though it was really a payment from the business?

If I show it was really a business payment to me for salary, would that get me out of hot water?

Also, they subpoena bank accounts in my name? How does all of this work?

I am confused.

[StartingOver08]

Did the friends loan your gf the money to start the business that failed?

Or was this a personal loan to her?

[AngelinaCatHub]

Thanks Ohio, I recognize that the trustee is not on my side. My other concern is that the other business was in our name, but what little money came from that flowed into an account that was in her name, and then she paid me, the business' invoices and bills.
It was later swicthed over. The other business was in her name as well as yours. This "marries" you to the situation. The new business, is it the same services rendered or similar?

So what you are saying is that I should have never let her do it that way and that any payments made to me by her account could get me in trouble as some sort of fraudulent transfer, even though it was really a payment from the business? I doubt you are in trouble. The truth will keep you out of legal trouble if you tell it like it happened. You have a right to take a profit from your business as long as it was equally distributed.

If I show it was really a business payment to me for salary, would that get me out of hot water? What do you mean "If I show"? The Court looks very poorly on any false transaction and cooking the books is not a good idea.

Also, they subpoena bank accounts in my name? They could. For cause anyone can be subpenead, as witness, for depo, for many reasons. How does all of this work? It works fine. A lawyer, any lawyer is an officer of the Court and he without Court knowlege or consent can send to you or your attorney and the Court after the fact, a subpoena.

I am confused.

Yes. But you are in the right place for aid. Welcome. 'Hub

[teddyselkirk]

Angelina-

Is there a look back period that would apply to me and if so, how long?

[OhioFiler]

Angelina-

Is there a look back period that would apply to me and if so, how long?

LOL..he called you Angelina!

[teddyselkirk]

Thanks everyone--Her friends do not know anything about this, but they are not stupid. It was a personal loan before we met and is unrelated to me or the business venture we had together.

However as I said, the business account was basically her personal account. She would make equal salary distributions and any draws on the business were always the same/ equal for both of us.

Can they even demand my tax returns?

Ps- everything was legit except for her originally having the business account in her name. I only mean "hot water" AKA how far sucked into this can I get.

[teddyselkirk]

I have omitted the daily brew of coffee folks, beware! ;)