Will this be disposable?

[ejny65]

I need to wait a few months before I can file.

a couple of months ago, I paid minimum payments to some of my cc (totally about $1600), thinking that it will reduce the phone calls from them.

Now I am worried that when I file, that money would be a preferantial payment or Trustee sees that as disposable.

I paid about $1600 in total. can trustee divide this amonut to 6 and tell me that I would have $266 disposable and push me to chapter 13?

Should I wait another month to get this out of way?

[yoyoma51]

Based on the information you provided, I don't think you'll have a problem.

We had preferential payments totaling about $5000 in the 90 days before filing and that did not affect the Ch. 7 we filed. The trustee went after the $5000 and paid back creditors after he took his cut. I doubt the trustee will look at it as disposable.

My guess, no big deal. Ask your attorney to be sure.

[krielly]

You said these were "minimum payments". If that's the case, and you didn't pay them anything over the minimum amount due, I don't believe they can be considered preferential.

[yoyoma51]

They will be preferential if the total paid was over $600 to any single unsecured creditor within 90 days of filing. One year if it is an 'insider' (family, close friend, etc).

[ejny65]

You know that money is gone now. If trustee decides to get it back and split it again, I dont care let him do it. BUT..... will they say ok, if you did not pay them you would have have $266 disposable per month? Will such a thing push me to 13? a money that I dont have and was paid to CC???

[PaKettle]

You know that money is gone now. If trustee decides to get it back and split it again, I dont care let him do it. BUT..... will they say ok, if you did not pay them you would have have $266 disposable per month? Will such a thing push me to 13? a money that I dont have and was paid to CC???

No, I don't think so EJ, because all that matters is your bottom line expenses and income for the past 6 months, averaged out.

Ask your attorney to be sure. (Add this to your list of questions for your attorney.)

[TabulaRasa]

They will be preferential if the total paid was over $600 to any single unsecured creditor within 90 days of filing. One year if it is an 'insider' (family, close friend, etc).

Sorry if I'm conducting a slight thread-jack here...

How does insider payments work? For example, I pay rent to my parents every month to live in a home they own for rental income. How would this be any different than paying some non-relative the rent money? In any case, I'm still out $x per month.