Back in April when we found out or stimilus would not be by direct deposit but a paper check my husbands uncle loaned us $1600. We are supposed to be getting $1800. The deal was when we got it we would just give him $1600 of it. Now that we have filed is that going to raise questions from anyone. We have not been confirmed or anything just filed June 3. From what I am hearing from people here they probably won't intercept it. But will they question what we did with the money? We took a trip to see hubby's family out of state and on the way back car broke down and we used the rest for a new alternator. We are the lucky ones who got to be last so they may think we already got it and blew it. It is supposed to be mailed July 11th however I didn't get one of those wasteful letters telling me it would be mailed like everyone else. My question is should I say anything or not. I am getting tired of calling attorney every other day. I feel like I am being a nusiance. I didn't think a thing about it until I read the other insider payment thread. Then I started to wonder. I did not think to list this a debt. I thought BK only applied to actual creditors. Like I have said before. Newbie here and I guess I am dumber than I thought I was.
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Don’t think yourself dumber than others. Until this forum we were real bricks. To answer your question, YES for sure that was an insider payment. Even a close friend it is not only “preferential” but to and “insider”. When you file, your estate become the property of the Trustee even retroactive. Now how long ago did you spend this? When did you file? If you do not have the money, and cashed the check, perhaps you will not be asked in your 341. If you are, tell the truth. You were ignorant of the fact, and used the money to fix your broken car, as well as household expenses paid through a loan by your Uncle. You simply reimbursed him for advance money to live on. See if it will fly. The worse thing to do is attempt to hide something on purpose. If you were ignorant, that is one thing, but to lie, they will not tolerate. ‘HubIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010. -
Hub, bless you for your assuaging responses to posters, but you need to stop citing "ignorance" and "morality" to make things fly.
Pref transfers/payments are serious business and the situation can only be handled by an experienced bk lawyer, if they are at all fixable.
OP, since you said that the check will not even be mailed until July 11, you cannot say that you used it for expenses that occured before you even got the check.
Do not cash the check and give it back to your uncle until you speak with your attorney.
Until you give that money back to your uncle, a pref payment has not been made.
I would speak to your uncle, explain the situation, and make plans to pay him back after the BK is discharged. By all means, never try to hide anything from the attorney.Comment
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Not trying to hide anything. We got the money from uncle in April of this year and made a verbal agreement that when we got our stim check we would give him his $1600 back. That was before we knew we were going to file. We actually decided to file Memorial Day weekend and did the paper work on June 2 case was filed the 3rd. The money he gave us was spent by the first week in May. $400 for a broken car and the rest for household expenses and a trip out of state. We did not file BK until June 3rd. Have not gotten stim check yet and are under the impression it will be mailed July 11 which is tomorrow. I was just wondering if i get the check and they don't ask for it if I pay him his money would that get me in trouble. If they let me have the refund I should be able to do with it what I want right. If they want it they can have it and I'll work out something with uncle. I will just ask my atty about it the next time I have to call for something stupid. And for crying out loud I can not make this man wait possibly 5 years for money he loaned me under the impression he would get it back in a few months. He may not live that long.Comment
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Originally posted by fltoo View PostIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.Comment
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Yes, that will get you in trouble, unless you can verify the 1600. spent money on viable expenses.
Giving it to your uncle is a pref payment and the trustee can get it back from your uncle.
It is NOT 90 days for a insider payment Hub. Look back is a year and can be more. There is a difference in "roughing up" someone and making sure they are informed properly.Last edited by fltoo; 07-10-2008, 09:33 AM.Comment
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Thanks guys for the info, I will ask my atty about it though just to be safe and I'll make sure and let you know what they say.Comment
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For sure, Fltoo. If they have cause they can look back two and more years. They don't usually though if they have no reason. What happened to me is I sold a Mortgage Deed while I was preparing for 13. This would have been allowed in 13. Then job loss, and we proceeded to 7. The Mortgage Deed for whatever reason was two months late in recording. My adversary looked it up and anonymously turned it into the Trustee. So it was a combination of errors on my, and my attorney's reason. I don't want to mislead someone at all. I don't want them to go through what I am currently going through. It is my way not to get someone upset further than I know they are. I think I made it clear the OP check with lawyer for sure. Thanks though. 'HubOriginally posted by fltoo View PostIf I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.Comment
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