Need an answer PLEASE!!

[Aimee Baker]

My husband and I are trying to file a Chapter 7 Bankruptcy. Several months ago, we borroweed $3,500.00 from his parents to help with financial obligations and our wedding. We have an arrangement with his parents we pay them $250.00 a month till it is repaid in full. Where does that $250.00 monthly expense fall under on the petition?

[flossy]

I just asked my attorney the same question. I was repaying a loan to my mother. My attorney told me the trustee would have my mother pay back everything I paid to her over the past year. Hope this helps.

[EdytaHome]

One of the questions the trustee asked everyone at the 341 meeting was, "do you owe any family member or anyone else any money"? I guess, it's important to list all personal/family debts.

[mark]

Pay you back?

Why would your Mother have to pay you back money that you borrowed from her? Maybe I misunderstood what you said. Have you told your mother about that?

mark

[HRx]

My husband and I are trying to file a Chapter 7 Bankruptcy. Several months ago, we borroweed $3,500.00 from his parents to help with financial obligations and our wedding. We have an arrangement with his parents we pay them $250.00 a month till it is repaid in full. Where does that $250.00 monthly expense fall under on the petition?

Just list it under with the rest of your debt in the schedules. However, consider getting your repayment plan put in writing and have it notarized, in the event that it's challenged.

Good Luck!

[monsieurrick]

beware of that question...

...as the trustee is looking to see if you are showing 'preferential treatment' to creditors. as a paralegal and an expert preparer of bk petitions, i can tell why the ttee asks that. Why? it's a trap. the rules of bk state that you cannot show preferential treatment to creditors which means you cant elevate your friends, relatives over and above visa, mastercard, etc. which you are certainly doing by putting down a sum of money on your expense statement showing a payment to relatives. this means you cant pay a relative more than you pay visa.

the ttee will disallow any money you input as an expense that is a payment to a relative and then make it extra income and may decide that you have too much left over each month and put you into a 13 bk.

beware and good luck,
for a more in depth review of this go to my site <link removed>

rick

[edwards2]

Amen to that. Dont list it. We had to borrow money to meet expenses when my husband suffered a medical catastrophie and my sister pestered us until we started paying her back $100 a month. I did not even tell my attorney about it. It would show preferential treatment. The only problem is you have to account for that $250, i.e, disposable income. Ask your attorney what to do.