Helping Niece with College

[minan]

How much causes a Trustee to ask questions? I thought any amount of $600 is questioned if made within the last 90 days or 6 months.

I was helping my niece with living expenses in college (did stop in May). I did this for about 9 months until I got a levy by the IRS on my bank account.

The amount was 500/mo. Is this cause for worry?

I just filed on the 30th.

[despritfreya]

Since your niece was not your legal dependant the Trustee can recover all of the $4,500.00 as a "fraudulent conveyance". The Trustee can recover such a conveyance, under bk law, if the conveyance took place within two years prior to filing, and/or under State law if State law has a longer "look back" period.

In addition, Question 7 of the Statement of Financial Affairs requires you to disclose all gifts made to family members in excess of $200.00 for the full one year prior to filing. If you did not list the gifts on question 7 you need to amend question 7 to properly disclose the payments.

[minan]

I had been so caught up in emotions that I didn't think about this. I was going through my bank statements today and realized I'd forgotten about the payments to her.

I've already contacted my attorney to get the schedules updated. Luckily I have the money to provide to the trustee out of my last check.

I just wanted to make sure what I needed to do.

[minan]

Does it make a difference if I'm doing a chapter 7 or chapter 13 in how this will get treated?

I'm in a chapter 13.

[HHM]

If chapter 13, than a non-issue so long as your chapter 13 plan pays at least $4,500 over the life of the plan. If a chapter 7, then you have a big problem.

[minan]

HHM: It's actually 3,500 (I just went back and reviewed bank statements). Paying 3,500 back to who?

How does this portion work?

[LadyInTheRed]

HHM: It's actually 3,500 (I just went back and reviewed bank statements). Paying 3,500 back to who?

How does this portion work?

To unsecured creditors. So, now you do have a minimum that needs to go to unsecured creditors. But, much less than the 19% that your plan currently provides.