What if....................

[magyar123]

Assume you're sentenced to a Chapter 13 because you earn over your state's median income.
After all the figure work, pay, expenses, etc. you are then sentenced to pay a certain amount back.
Assume you have one job from which you have to pay that certain amount.
BUT - someone else, relative or friend, previously borrowed money from you and are paying you back.
Would that payback by that relative/friend be considered additional income and subject to further theft by the trustee/creditors?
Would it be considered fraud if you ask that relative/friend to pay you in cash to avoid additional deposits being shown on the bank statements?

[fabala]

I talked with my attorney today about a similar situation. (Plus I paid my retainer so we can get this show on the road - YAY). At any rate, we discussed whether I could sell my car to a family member and have them make payments to me. She said sure, but that I would have to have a bill of sale, etc. and that the amount paid every month would have to be listed as income. (Plus in my case I'd still have to list the car as personal property). I'm no expert, but my guess would be that a loan set up outside of the BK plan would be fraudulent.

[dac67]

Are you confirmed yet? I would say it depends on how much they are paying you back. Several thousand is one thing but if not I would not worry.

[magyar123]

I wasn't referring to a transfer of assetts, I was asking about repayments of funds from months/years past. Say two years sgo you lent your sister/brother or whoever $5000. And they're still paying you back at $100 a month. By now - 2 years later they repaid you $2400. but still owe you $2600. And every month, in addition to your paycheck you get this extra $100 coming in.

[aa06a47]

Legally, it is income, and would be considered "disposible" income that the trustee has the right to take to distribute to your creditors.

I wouldn't really refer to the money your paying into your bankruptcy as theft. After all, the people you obtained credit from and used that credit are the ones being told by the court they will only receive a % of what was "borrowed" by you.

If your friend who borrowed the 5k from you stiffed you and didn't pay a dime back to you, would you consider that theft by your friend?

[Flamingo]

Assume you're sentenced to a Chapter 13 because you earn over your state's median income.
After all the figure work, pay, expenses, etc. you are then sentenced to pay a certain amount back.
Assume you have one job from which you have to pay that certain amount.
BUT - someone else, relative or friend, previously borrowed money from you and are paying you back.
Would that payback by that relative/friend be considered additional income and subject to further theft by the trustee/creditors?
Would it be considered fraud if you ask that relative/friend to pay you in cash to avoid additional deposits being shown on the bank statements?

In your bankruptcy filing papers, you are asked specific questions as to what you owe and if anyone owes anything to you, if you are anticipating a settlement from a lawsuit, etc. Since there would be an oustanding balance due you, that would have to have been listed. If you did not list that, and you don't report the payback, the Trustee would consider that fraud if it not disclosed and the Chapter 13 could be dismissed. Your Trustee or creditors are not commiting "theft" by ensuring that you disclose all your income to pay debts due and owing. It is the Trustee's job to ensure the creditors are paid from what you can afford. If you have concerns about all this, discuss the situation with your attorney who can advise you what you should or should not do to avoid possibly having your Chapter 13 dismissed due to nondisclosure of income. When in a Chapter 13, it is always best to be honest and forthrigiht about any extra income you receive to avoid a dismissal. Having a Chapter 13 dismissed is the last thing you want to occur since it puts you right back at step one.