I filed bankruptcy in Oklahoma on 12-2004 and included a dept owed to my Mother-in- law of which we have repaid $4000.00 of the $14,000.00 dept. Our trustee is saying that my mother-in-law has to repay the $4000.00 but we stopped paying on the dept in Sept. 2004 when we knew we were going to have to file. When we appeared in bankruptcy court the first time the trustee said she wanted affidavits showing what the dept was for and gave us 10 days to do this. I faxed my attorney all the info showing what it was for and the date of last payment. I don't believe he ever filed the affidavit showing this. Is there anything i can do about this. I thought they could only go back so many days on things like this. I am very distressed about this because this whole process have about caused me to have a nervous breakdown and it seems to just keep slapping me in the face.
-
I filed bankruptcy in Oklahoma on 12-2004 and included a dept owed to my Mother-in- law of which we have repaid $4000.00 of the $14,000.00 dept. Our trustee is saying that my mother-in-law has to repay the $4000.00 but we stopped paying on the dept in Sept. 2004 when we knew we were going to have to file. When we appeared in bankruptcy court the first time the trustee said she wanted affidavits showing what the dept was for and gave us 10 days to do this. I faxed my attorney all the info showing what it was for and the date of last payment. I don't believe he ever filed the affidavit showing this. Is there anything i can do about this. I thought they could only go back so many days on things like this. I am very distressed about this because this whole process have about caused me to have a nervous breakdown and it seems to just keep slapping me in the face.
-
There are probably 2 issues here, 1. Your Mother-in-law is considered an insider, 2. the nature of the debt is probably such that you can't show preference. Typically, you need to wait 12 months for major payments to single creditors. What was the debt for anyway?
Without more background, its difficult to say whether the trustee can or cannot do this, but sounds like, in either event, you need to get back in touch with your attorney. -
The debt to my mother-in-law was for credit cards. She loaned us the money to pay off three cards about a year ago and we have the cancelled check's that she wrote to prove what it was for. I realize it was stupid to borrow the money from her and then a year later file bankruptcy but I has a small business that went under and really didn't have a choice. If i knew what I know now I would have done things differently. As it is even after filing bankruptcy I will still owe the IRS and Oklahoma Tax Commission. So I really feel like I am still drowning here.Comment
Comment