I know this is an insider payment, but....

[DownNotOut]

....is it really a big deal?

In Feb. my mom loaned us $1000 to pay our mortgage before it was late. Husband is self-employed and we were waiting on payments for jobs to come in. A week later after we got paid, I paid the money back to my mother.

I know this is insider, and I am hoping I can wait a year to file, but if for some reason I get sued (stopped paying cc's in Feb. also) before then and have to file, will it be a big deal?

Can I have some cash ready to pay off the trustee if he objects to it? Say, offer him $500 cash to settle it?

Also, I don't know if this will make a difference, but she deposited the money to our personal account, but when I paid her back I paid from the business account. I will be filing single because all the debt is in my name except the home which is joint. Husband is the only owner of the business, so will the trustee even look at the business account if I don't own it?
In that case, the $1000 would look like a gift and would just be considered income.

[DownNotOut]

Any help?

I will most likely be filing pro se, so I do not have an attorney to ask.

[justbroke]

Yes, you can file and wait for the objection from the Trustee. Generally the Trustee will tell you about the insider payment that they seek to avoid (recover) before they attempt to recover it.

You can then offer the Trustee some money, since it costs the Trustee to pursue the money and it's not guaranteed that the Trustee will recover the money (for example, the person they seek to recover it from, files for bankruptcy!).

For $1,000... I'm not sure the Trustee will even care, but may "scare" you into settling by mentioning that they're "thinking" about pursuing it.

As for the business account paying your mother back.. now that's interesting. I can't really give you advice on it because it would be legal advice. However, I'll say this. It doesn't look like you paid your mother in a preferential manner (and insider payment). That's all I'll say about that.

[DownNotOut]

Thanks, justbroke, I appreciate the "non-advice"!

[justbroke]

Thanks, justbroke, I appreciate the "non-advice"!

I'll happily not provide you advice... anytime you don't want it!

[WillinVT]

What happens if you borrowed $2400 back in October of 2008 and have not paid anything back?

This is my case. My mom lent me $2400 back in 10/2008 and I said I would pay her back when I get the chance, but haven't had the money to pay her back yet.

I know I have to list this on my bankruptcy forms when I file, but if I did not pay her back, will the trustee believe me or will they hastle my mother to really see if I paid her back or not?

[StartingOver08]

What happens if you borrowed $2400 back in October of 2008 and have not paid anything back?

This is my case. My mom lent me $2400 back in 10/2008 and I said I would pay her back when I get the chance, but haven't had the money to pay her back yet.

I know I have to list this on my bankruptcy forms when I file, but if I did not pay her back, will the trustee believe me or will they hastle my mother to really see if I paid her back or not?

The Trustee will not hassle your mother. The fact that you put her on the petition is your oath to the Trustee that you owe the money to her. They may want to see your bank statements for the time period since Oct 2008 to verify you did not repay her. This is district specific though.

You are allowed to repay your mother AFTER your discharge if you so choose.