Just filed...but have a major question

[htoone]

Hello to all...long time reader, first time poster. My attorney filed my paperwork today. I have one question. Can anyone give me any idea how tough the trustees in Oklahoma are, especially when it comes to "preferential payment." I quit paying all my debtors around the same time, family included, so I could pay my attorney. I owed my grandmother around 3900, borrowed in August of 2010, but have only paid around 1400. I explained to her about the risks involved when filing bankruptcy, that the trustee can come after the money I paid back to her. She said we'd cross that bridge when we get there. Now the problem...she passed away this past Saturday (the 23rd), and it was totally unexpected.
The money was borrowed from an account that she and my grandfather did not share, nor was he aware she had loaned me the money. I guess I am trying to get a feel for the trustees and judges for the Eastern District in Oklahoma (Okmulgee). /

[AngelinaCat]

Welcome to the forum, htoone. I am so sorry to read of your beloved grandmother's death.

I cannot answer your question. This is one that you will have to talk with your attorney about. How the loan to you is going to be handled is something that her estate and her Personal Representative--or whatever they call the Executor of the Estate in your state--can answer. Then you and your BK attorney will have to go from there.

My very best wishes go to you!

[MSbklawyer]

Since this was a relative, the lookback period on preferential payments is one year. But if your grandmother is now dead, your trustee would have no one to try to recover the payments from except your grandmother's estate. If no one opens an estate on your late grandmother, the trustee could do it, but for $1400? I don't know your trustee, but I wouldn't expect that he would pay this any attention at all. The amount of money just wouldn't justify the time it would take. But Cat is right. These kinds of questions are what you're paying your attorney for.