Chapter 7 - lending money and being paid back before filing

[acon57]

Hi! I filed for Chapter 7 in late February 2024. From April 2023-October 2023, I lent family members money in various amounts, but they always paid me back. These transactions are shown through PayPal, Venmo, etc. Does anyone know if this is going to throw red flags for the Trustee? I have my 341a meeting coming up in a couple of weeks. I don't want the Trustee to think I was hiding money during this time. I made a quick decision to file bankruptcy without really doing any research before. Thank you for all your help! I am stressing!

[justbroke]

If this was for de minimis amounts ($20 here, $10 there), I don't personally think it would raise any flags. But if you loaned hundreds or even thousands of dollars, those outstanding loans may be property of the bankruptcy estate. I don't know if it would go on the Statement of Financial Affairs (SOFA).

One of the standard questions at the 341 Meeting is... "Does anyone owe you money?"

[acon57]

Unfortunately, it was large amounts, but all the money was repaid to me before filing. So no one at the time of filing owes me money.

[justbroke]

Unfortunately, it was large amounts, but all the money was repaid to me before filing. So no one at the time of filing owes me money.

Oh. Then you are fine because your answer to the question "Does anyone owe you money?" will be a resounding, "No." The Trustee could only seek to collect on those loans if they were still outstanding and due.

I was worried when. you said "but they always paid me back" meant that this was a continual thing and you had recently lent money which has not yet been paid.