Quick Question

[jgordo52]

I owe my brother 570 dollars for a loan he gave me a few months ago. Is there anyway I can pay him any keep it frmo the lawyers and what not before I file? It's not a lot of money, it's a difficult thing cuz he wants to get paid back as soon as possible and my entire family has no idea I'm filing. I have given my atty 100 to start and they start taking 190 every 25th and 10th until I get him paid. I'm also worried about property taxes on top of it, but first things first I want this answered.

Thanks,

Jeff

[FreshLikeADaisy]

Jgordo, this is what's known as an "insider" transaction, and in general it's very bad news. No, you won't be able to hide it from the trustee, and if you paid your brother your trustee could sue your brother to recover that cash for your bk estate.

That said, the amount you are talking about is very small, in bk terms. I forget whether the cut off is $500 or $600, maybe someone else has a better memory but in the meantime, if I were in your shoes, what I might do is give my brother a *half* payment of maybe $300, and then pay him the balance owed after my 341, or perhaps even after discharge. $300 is just not worth going after, even if the trustee didn't like that you paid your brother.

It would also help if you had documentation of this loan, just in case your repayment comes up. I know you're not trying to hide assets, that's a very small amount, but it's best to avoid even the appearance of impropriety.

Someone else may have better advice for you, but that's my take on it. Good luck!!!

[southernbelle]

My advice is the same. It's not a lot of money to risk trouble with the Trustee. Why don't you explain the risks to your brother, list him as a creditor and repay him after your discharge? It might simplify matters for you.