Daisy--I'm pretty sure I have the understanding right about this code--but not positive--just wanna state that for the record. Preferential transfers is something I have had to be researching lately. All you have to do is google "preferential transfers" and you will get a ton of info referencing 547b-or you could also google
"547b"--yes, I do believe this code applies to all BK's, meaning all BK's have to follow the same criteria re: preferential transfers.
Also, something to think about if her parents are making some pymts, I am NOT sure, but for tax purposes, this may be considered a 'gift' and have to be counted as income. Just food for thought.
I know creditors do not care where the $$ comes from for their pymts, but the trustee should--it may be a technicality, or similar, that is considered some type of 'support' from another source. Either way, fact is, if she cannot afford to make the scheduled ch 13 pymts, and a creditor is strong arming her into certain things, the trustee needs to know--in this light, this is what the trustee and BK courts are there to protect you from, in this case, the trustee may be her "friend"-lol!--by law, the trustee's biggest responsibility is to be sure all creditors are treated equally. I do not know how this relates to "real life" situations--but in theory, the trustee is supposed to put a STOP to assest grabbing.
The creditor can get into real trouble for accepting $$ that is outside of the trustees agreement, this is preferential transfer of assets, if it is outside of trustees agreement, which is cause for avoidance, and also may be penalized by law if the creditor is harassing and grabbing. The creditors are NOT above the law, and the trustee needs to inforce this. Whether a trustee does their actual job in real life, I do not know, this is part of what makes BK so scary, it is not infallable, and subject to human error, despite the reasons why the laws and codes are in place.
"547b"--yes, I do believe this code applies to all BK's, meaning all BK's have to follow the same criteria re: preferential transfers.
Also, something to think about if her parents are making some pymts, I am NOT sure, but for tax purposes, this may be considered a 'gift' and have to be counted as income. Just food for thought.
I know creditors do not care where the $$ comes from for their pymts, but the trustee should--it may be a technicality, or similar, that is considered some type of 'support' from another source. Either way, fact is, if she cannot afford to make the scheduled ch 13 pymts, and a creditor is strong arming her into certain things, the trustee needs to know--in this light, this is what the trustee and BK courts are there to protect you from, in this case, the trustee may be her "friend"-lol!--by law, the trustee's biggest responsibility is to be sure all creditors are treated equally. I do not know how this relates to "real life" situations--but in theory, the trustee is supposed to put a STOP to assest grabbing.
The creditor can get into real trouble for accepting $$ that is outside of the trustees agreement, this is preferential transfer of assets, if it is outside of trustees agreement, which is cause for avoidance, and also may be penalized by law if the creditor is harassing and grabbing. The creditors are NOT above the law, and the trustee needs to inforce this. Whether a trustee does their actual job in real life, I do not know, this is part of what makes BK so scary, it is not infallable, and subject to human error, despite the reasons why the laws and codes are in place.
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