We borrowed money from parents till our severance checks arrived

[Fallonedward]

Both the hubby and I got laid off within 3 weeks of each other. My severance check took 7 weeks to get to me and the hubby's took 6 weeks.

To pay the bills we borrowed from our parents and we told them we would pay them back upon getting our severance checks. We have paid them back but now I worry if in BK (we just declared) this will be an issue.

We told our attorney and he asked how we paid them back and we said we paid them with cash because they just kept the $6k in their safety deposit box for a rainy day and they put it back...

he just shrugged his shoulder and did not really say anything.

now I'm worried that our parents will be in trouble

any advice? thanks

[MSbklawyer]

They're not in trouble per se. But you have created a preference by paying them off within 1year of your bankruptcy filing. The trustee has the authority to sue them to make them pay this money back. Depending on how much money it is and how aggressive your trustee is, he may or may not go after them for that money.

[MSbklawyer]

They're not in trouble per se. But you have created a preference by paying them off within 1year of your bankruptcy filing. The trustee has the authority to sue them to make them pay this money back. Depending on how much money it is and how aggressive your trustee is, he may or may not go after them for that money.

Did you tell your lawyer about this transaction before you filed?

[Fallonedward]

They're not in trouble per se. But you have created a preference by paying them off within 1year of your bankruptcy filing. The trustee has the authority to sue them to make them pay this money back. Depending on how much money it is and how aggressive your trustee is, he may or may not go after them for that money.

Did you tell your lawyer about this transaction before you filed?

Yes, I did and he just shrugged his shoulder and said that its good we paid in cash. I just want to do the right thing and it seems like I pulled the trigger on filing too soon.

thank you for your help

Does anyone else have any advice on this issue? thanks

[frogger]

Yes, I did and he just shrugged his shoulder and said that its good we paid in cash.

I don't think that anyone here is going to give you any advice or guidance on what your attorney told you.........

[Fallonedward]

I don't think that anyone here is going to give you any advice or guidance on what your attorney told you.........

Thanks, appreciate the help

[SMinGA]

What chapter did you file? If a 13, and you're paying at least as much (as you paid your parents) to your unsecured, it may be a non-issue.

[Fallonedward]

What chapter did you file? If a 13, and you're paying at least as much (as you paid your parents) to your unsecured, it may be a non-issue.

We filled all of the paperwork out on Monday and our lawyer was going to file today but my hubby has a 3rd interview tomorrow, so we asked her not to file for another month and she agreed. Our family suggested that we wait and see if he gets the job and then file after he has secured the job

thank you for your help