Money owed to family--list or not?

[paulakay1968]

Hello again,
I decided to address this in a different post. We have gotten hay from my husbands uncle for the past couple of years and have not been able to pay him for all of it yet. He has always just said "don't worry about--pay when you can". We probably owe $3,500 to $4,000 and plan on eventually paying him whether we proceed with bankruptcy or not. Should we list this obligation as an expense and/or outstanding debt when we consult with an attorney? I would just assume not have to mess with him having to fill out a bunch of paperwork if we do end filing for bankruptcy (I think Chapter 7) and just for the sake of relations we do intend on paying him in full over time and payments. Thanks again. Paula

[Cmonlottery]

If there is any chance he will sue you, list him. Otherwise, I wouldn't.

[suprdav2]

My wife and I owe some of our family members money, and I questioned our attorney as to how we should list that. He told us that we can not list money owed to family members.......that since it is money between family, it does not qualify as an expense dischargeable through bankruptcy, and does not qualify as an expense either. It is termed "insider payments", and the trustee and the court will not allow it to be listed either way.

[StaciMM]

That is interesting! Thanks for sharing.

We took a $2400 loan earlier this year from my mother in law to catch up on rent, with the agreement to have it paid back in March. (It was money she had intended to use for new carpet in her house, and since we needed to borrow it she took a 0% for 1 year financing offer on the carpet.)

We have paid back $400, and as I didn't want to be in a position of commiting purjery, we will only pay back another $199 before filing, etc. I didn't list it, though she is aware that we are filing BK.

My wife and I owe some of our family members money, and I questioned our attorney as to how we should list that. He told us that we can not list money owed to family members.......that since it is money between family, it does not qualify as an expense dischargeable through bankruptcy, and does not qualify as an expense either. It is termed "insider payments", and the trustee and the court will not allow it to be listed either way.

[BrokeCh7]

I listed a loan from my dad. I did need to give the trustee a list of how the money was spent but it was just fine.
Work with your lawyer and give him all the debts if he for some reason did not list them he should be there to answner the question from the trestee.

I had some extra questions on my corp vs my sol perpritership and how my lawyer had listed it. I was not the best person to clear this up and my lawyer piped in to address the trestee questions. The best $800.00 i spent.