HELP! Would this be considered preferential payment?

[SadDebtor2]

Thank you, Everyone!

What about inheritance? Am I allowed to keep any of it if I end up getting one?

What if the inheritance is in another country?

[despritfreya]

Only if the OP can't exempt it, right? Based on the info posted so far, I am guessing the OP will be able to exempt a $5,000 loan using the California wildcard exemption which is currently over $28K if you don't need the homestead exemption.

Good point. . . yes, if the promissory note can be covered by an exemption. However (there is always a however), due to the close (insider) relationship between these parties, a Trustee is going to look at this to determine if the loan is a sham with no intent to repay. If a sham, same problem as "gifting".

Des.

[despritfreya]

What about inheritance? Am I allowed to keep any of it if I end up getting one?
What if the inheritance is in another country?

Adding this to the mix tells me that you might have some issues you really need to be discussing with a well qualified attny.

Any inheritance that you become entitled to within 180 days of filing belongs to the bk estate subject only to any exemption you might claim. The minute the other person dies you become entitled to the inheritance. Does not matter where in the world the inheritance is coming from and it does not matter how long it takes to finally reach you. If the person dies within the window, it belongs to the bk estate.

Des.

[BKAttyMI]

You don't need to actually retain the attorney on the spot in order to talk to them and create a bankruptcy filing plan, I do this often with clients. It sounds like you need to sit down with an attorney and create a plan.

[SadDebtor2]

Thank you! I'm meeting with a lawyer in less than a week, and I'll discuss these matters with him.

Despritfreya mentioned that "any inheritance that you become entitled to within 180 days of filing belongs to the bk estate". What if it's an inheritance that you became entitled to almost 10 years ago but never received it? And you are expected to receive it within 180 days of filing...

I'm just curious....

[keepmine]

It's an asset. Unless it can be properly exempted, it could be at risk.

[despritfreya]

What if it's an inheritance that you became entitled to almost 10 years ago but never received it? And you are expected to receive it within 180 days of filing...

Such is nothing more than a receivable (money/property owed to you) and is an asset that must be disclosed on Schedule B.

Des.

[SadDebtor2]

Thank you!