we borrowed money from family...

[endisnear]

we borrowed money from 2 of our grandparents, how would the trustee look at this? we have not paid any money back to them yet...

[epiphany]

You will have to include them in your list of creditors when you file.

Do they know you are filing? Would be best if they did and if they can wait until after you are discharged before you start paying them. Any payments that you make to them before filing could be considered preferential depending on the amount.

If they can wait, then you probably have nothing to worry about.

ep

[Flamingo]

Mention it to your attorney. We borrowed part of our initial attorneys fees/filing fee from friends of ours since we were so cash strapped at that time (they approached us with the offer to help). The attorney advised us to check with our friends to see if they wanted to be listed as creditors in the BK and be paid back through our CHapter 13. If we did that, they would receive copies of all the paperwork invovled during the entire Plan. We checked with them as we told them previously we would pay them back when able and they did not want to be part of the Chapter 13. We advised our attorney who noted that in the paperwork. You have to inform your attorney of all debts due and owing. Family may not want to be paid back or you can pay them back after it is over so check with your attorney and your family on your particular situation. In our situation, we paid back our friends, with interest, when we bought out of our Plan early and refinanced.

[endisnear]

They do know that me and DH have been having money trouble since he lost his job a year ago and I know they'd be fine with waiting until we are discharged to get paid back (which is why i'm really hoping to go Ch7!).

So from what i am understanding then, the trustee will see the large deposits from them, but as long as they are listed as us owing them, then it doesn't raise any unwanted ?'s from the trustee, correct??

and no we've not paid them anything yet, so no worries about any preferential treatment there

[AngelinaCat]

So far, you are on the right track. Good luck.

[endisnear]

ok good, thanks!

[epiphany]

So from what i am understanding then, the trustee will see the large deposits from them, but as long as they are listed as us owing them, then it doesn't raise any unwanted ?'s from the trustee, correct??

Correct as long as they are listed as creditors. If they are not listed as creditors, then it looks like income.

Just be aware that they will be notified of the bankruptcy.

Good luck,
ep