If I borrowed money from my mom, and I am filing a ch.13, should she file a claim?

[Mere]

Question? I borrowed money from my mom a few years ago $5000.00 she wrote me a check and I deposited it, so there is a record of this transaction. If I file a ch. 13 should she file a claim?

Now, one more scenario, If I borrowed the $5000.00, and paid back $2,500.00 by check about a year ago, the remaining balance would be $2,500.00 correct? Yes, however what if my plan is only a 50% pay back plan....should she or can she still file a claim for the full $5000.00 to make sure she gets full pay back?

I hope this make sense, I know it's kind of confusing...

[Flamingo]

All debts owed need to be listed in your filing. When it comes to family funds like this it is always best to first check with your mother as to this situation and how she feels about it - some family members that are owed money do not want to be part of a Chapter 13 filing and discuss in full with the attorney you retain for your filing.

[Mere]

All debts owed need to be listed in your filing. When it comes to family funds like this it is always best to first check with your mother as to this situation and how she feels about it - some family members that are owed money do not want to be part of a Chapter 13 filing and discuss in full with the attorney you retain for your filing.

I spoke with her, she has no problem filing a claim, and honestly I would rather she get paid, then anyone else. What would be the harm? Is there any?

[momofthree]

DO NOT LIE OR LET HER FILE A FALSIFIED CLAIM. That's all....

[Mere]

DO NOT LIE OR LET HER FILE A FALSIFIED CLAIM. That's all....

Everything has a paper trail and bank deposits except for the $500 in cash...I sent my attorney an email to seek his advice, however since it's the weekend I wanted to ask you guys since I might not hear from him until Monday. I turned in my paperwork yesterday to him, but forgot to include her, because all other creditors send me monthly bills...and my mom does not, nor does she ever ask for the money She always tells me "Only loan money if you are comfortable never seeing it again." I just wasn't sure how this is usually handled, I would never lie, or ask anyone else too.

[LadyInTheRed]

Mere, the reason momofthree warned against lying is that if your mother loaned $5,000 and you have already paid $2,500, filing a claim for the full $5,000 would be a lie. She can file a claim only for what you actually still owe her. If unsecured creditors get only 50%, she will only get 50% of what you still owe her. But, there is nothing to stop you from paying her more after your BK is discharged.

[Mere]

Mere, the reason momofthree warned against lying is that if your mother loaned $5,000 and you have already paid $2,500, filing a claim for the full $5,000 would be a lie. She can file a claim only for what you actually still owe her. If unsecured creditors get only 50%, she will only get 50% of what you still owe her. But, there is nothing to stop you from paying her more after your BK is discharged.

That makes sense so I just have her file for the remaining amount, and then whatever is not paid back to her in the plan, I can just make up the difference after the discharge so she is paid in full. Thank you for explaining Ladyinthered

[car67]

LadyinRed explained it perfect............ If it was my mom she could file a claim or I would give her something small as I could afford it or work it off in chores and jobs for her. Moms love is unconditional... She will find a way to make it work.

[Flamingo]

That makes sense so I just have her file for the remaining amount, and then whatever is not paid back to her in the plan, I can just make up the difference after the discharge so she is paid in full. Thank you for explaining Ladyinthered

You can't pick and choose how a debt is handled in a Chapter 13 filing. Your mother will be paid under whatever terms/percentage is required by your Plan after confirmation. If she does not want the debt paid back, you need to discuss all that with your attorney and I suggest contacting him/her on Monday and go over the situation. We had friends loan us $1,200 to file as we did not have the money at that time. They told us we could pay them back after our BK and not worry about it; however, we had to advise our attorney of that debt and it was indicated in our filing but not listed as our friends did not want to be part of our Chapter 13. As long as you mention this debt to be listed or however handled since there is no paperwork or credit agreement with your mother for the debt, go over in full with your attorney - simple as that. Best of luck to you. Be thankful for your mother also for her help.

[jange]

I also borrowed money from my mom and included her in my plan. Based on the amount I am paying in the plan she will be short about $1500. Since I want to pay her back the full amount, can I pay her some before my discharge or do I have to wait until after the discharge? thanks

[lrprn]

...can I pay her some before my discharge or do I have to wait until after the discharge?

As long as you:
- have a sufficiently deep emergency fund built up
- can still make your Ch 13 payment, asset payments, utility payments, etc, on time for sure
....then you are welcome to give your mom whatever you can during your 13. I would suggest doing so only when you are 100% certain you won't need the money for something else that can't wait.

[jange]

thanks lrprn, I wouldn't pay it back all at once and I didn't think it would matter as far as my bk goes, but everythng I had read here mentions repaying after the discharge. My emergency savings took a big hit this past summer with several expensive repairs, so I am working on rebuilding that first.

1 year done, 4 more to go!