Think I made a mistake...

[sbush]

I had my initial consultation with my attorney and told him my parents owed me money from a long time ago! Oops! He said that's considered an asset and they will have to pay me back. They were planning to, so I said ok!

Well, my mom lost her job and my dad is having some medical issues. He has not worked for a few weeks and may have to be hospitalized.

So, my question is, can I just "forgive" the loan? The money was given to them over 2 years ago. It was about $1,000.

[keepmine]

For a $1000 that was lent a year or more ago, don't even schedule it. Tell your attorney you misunderstood his question.
What'll happen is, the trustee will either go after your parents for the money or hold up your closing until you pay him. Technically, debts owed to you are property of the bk estate and the trustee can go after them to distribute to your creditors.

[frogger]

Unless you have paperwork that states otherwise, perhaps it was a gift to help them with their bills and not a loan. After all, it's over 2 years old and they haven't paid you back.

[sbush]

Right, at this point, I definitely consider it a gift. My mom watches my kids for me for free, so maybe that can be her payment towards me. IDK, I was considering getting a new attorney since we haven't retained him, but I did like him and don't really want to be shopping around a lot.

[HakunaMatata]

It seems acceptable to me to deduct childcare services from this loan.

I loaned my sister $4500 prior to filing. My attorney was informed and the amount was listed and exempt. I was never questioned by the Trustee. Can you exempt this loan?

[sbush]

I have no idea. I'm going to just tell him that she has paid me off by babysitting. I mean she watches 2 kids a day, 4 days a week...for over a year! I think that's fair.