Depositing a LARGE check after filing????

[stratos]

What about this option -- First, don't file now. Deposit the check; live like usual, spending the money on usual living expenses. If it's gone in 8 or 9 months, or a year, and you're still in a position where you need to file bk, do it then. If you use the check on normal expenses, it wouldn't be a fraudulent transfer. And it won't count in your CMI if you wait more than 6 months. Does anyone see something I'm missing?

If you file now, you're going to have to give up the money to the trustee (i.e. your creditors) unless that much money is exempt in your jurisdiction.

Are you even sure the check is going to clear?

[helpmeout]

i so absolutely agree....that's why if the friend waits to pay him back in 6 months well........ it's not fraud....or is it????.......just knowing it,...does suggest it.... personally, i couldn't do it because i can't even lie about how many cookies i ate....

Because it doesn't matter when he gets paid back. That account receivable is an asset if the BK estate. The Trustee will go after it unless he can exempt it.

[msm859]

Why don't you get rid of the money - legally. Max out a roth IRA. What state do you live in? can you buy some exempt assets - car perhaps? stock up on household supplies. 15k is not a lot of money to get rid of.

[free2breathe]

I think what you are failing to grasp is that the fact that this person owes the OP money means he MUST list it on his petition, or be committing fraud. You must list those whom you owe and those who owe you money. You have an outstanding debt owed to you, that is an asset. You OWE, that is a liability. It is all required to be disclosed in the bk. Even if you don't GET the money for months, it is still money owed to you and is an asset. You can slice the pie as many times as you want, you can top it with whipped cream, you can serve it hot or serve it cold. It is still pie. It is the law, and whether a person chooses to go by the letter of the law or not when filing bankruptcy is up to them. Personally, I'm not going to hang a rock to my neck and jump from a cliff into deep water. Just my personal opinion.

[tobee43]

well...actually it does........that is because i was assuming this was a NO asset case.....

if you inherit anything or win the lottery 6 months after your discharge, you don't to notify the court.

however, on the flip side side of the coin...and i think you made me think about your point...is this....this person giving back this 15k should have been listed on the bk as you stated and then that person is longer obligated to the debt as you point out.

the other intersting aspect of this, is i have seen on case where the trustee assigned "special" council because the client bk listed....approx. 4 million in receivables owne to him!! so of course the bk court went after the crediors because they wanted that money....i never found out what happened in the end.

[tobee43]

I think what you are failing to grasp is that the fact that this person owes the OP money means he MUST list it on his petition, or be committing fraud. You must list those whom you owe and those who owe you money. You have an outstanding debt owed to you, that is an asset. You OWE, that is a liability. It is all required to be disclosed in the bk. Even if you don't GET the money for months, it is still money owed to you and is an asset. You can slice the pie as many times as you want, you can top it with whipped cream, you can serve it hot or serve it cold. It is still pie. It is the law, and whether a person chooses to go by the letter of the law or not when filing bankruptcy is up to them. Personally, I'm not going to hang a rock to my neck and jump from a cliff into deep water. Just my personal opinion.

i think so as well......and actually if this creditor was "smart".....they wouldn't owe back the debt....provided of course they were listed...i know there is some discussion about that on this forum...but just see what happens when a creditor comes after you and 2 years after your discharged you are asked to prove they were in included in that bk....

so i agree....they SHOULD be listed.

[helpmeout]

well...actually it does........that is because i was assuming this was a NO asset case.....

if you inherit anything or win the lottery 6 months after your discharge, you don't to notify the court.

however, on the flip side side of the coin...and i think you made me think about your point...is this....this person giving back this 15k should have been listed on the bk as you stated and then that person is longer obligated to the debt as you point out.

the other intersting aspect of this, is i have seen on case where the trustee assigned "special" council because the client bk listed....approx. 4 million in receivables owne to him!! so of course the bk court went after the crediors because they wanted that money....i never found out what happened in the end.

Well, what happened is that either the people who owed the money to the person who filed for BK paid the Trustee in full what was owed, made payment arrangements with the Trustee or filed for BK themselves. Because filing for BK is the only way to avoid paying the Trustee the money.

Winning a lottery the day after filing does not compare because that is not money owed to you or cash in hand on the day of filing. An account receivable on the day you filed BK is clearly an asset of the BK estate.

[tobee43]

Well, what happened is that either the people who owed the money to the person who filed for BK paid the Trustee in full what was owed, made payment arrangements with the Trustee or filed for BK themselves. Because filing for BK is the only way to avoid paying the Trustee the money.

Winning a lottery the day after filing does not compare because that is not money owed to you or cash in hand on the day of filing. An account receivable on the day you filed BK is clearly an asset of the BK estate.

yes, i agree, it is....actually...i think in the case i was talking about the bk is still attempting to settle.....and once again, you're collect if and when there is any settlement from those receivables the trustee will, keep and distribute as he/she fits.

[AngelinaCat]

Okay. I think this thread has run its course, and I am closing it. The OP has his/her answer no matter how many times he/she rearranges the question and asks it again, because the answers aren't what he/she wants to hear. Thank you for your patience.