Insider, Preferential?

[furr2ball]

[justbroke]

I would consider the "gift", if it never hit your bank, as just if they just "forgave" part of the $70K. I don't think it's perferential if it's a gift. Since the original debt is dischargeable (unsecured), their forgiving part of it has no effect on you owing them.

Now, if the money reached your bank account, as in you cashed the check, then paid them back with the proceeds of the cashed check, this would be very difficult to explain.

Of course, be sure to mention this to your attorney.

[furr2ball]

I would consider the "gift", if it never hit your bank, as just if they just "forgave" part of the $70K. I don't think it's perferential if it's a gift. Since the original debt is dischargeable (unsecured), their forgiving part of it has no effect on you owing them.

Now, if the money reached your bank account, as in you cashed the check, then paid them back with the proceeds of the cashed check, this would be very difficult to explain.

Of course, be sure to mention this to your attorney.

I received the funds, deposited them into my account and wrote a check back the next day. I will bring this to my attorneys attention, ( first meeting with atty. yesterday).
Would this be differant if 6 months had elapsed? or is there a one year look back?

[justbroke]

I received the funds, deposited them into my account and wrote a check back the next day. I will bring this to my attorneys attention, ( first meeting with atty. yesterday). Would this be differant if 6 months had elapsed? or is there a one year look back?

It's a one year look-back for "insider" preferences.

Because you took the check and deposited it, it came into your possession. This is probably going to create a preference issue for you. I would definitely see if your attorney thinks the same way.