Just Filed & Father Died

[Help!]

****UPDATE****
I just got done talking to my lawyer. The conversation was a little interesting, to say the least.
He said to skip out on the 341 meeting. The trustee should reschedule another one for about a month or so later. The lawyer or one of his reps will go to the second one and say they haven't heard from me. He then told me the BK should be dismissed within 30 days or so. Once and if we get it dismissed, let both automobiles get repossesed, by a couple more dependable ones with cash, so (i'm no longer upside down). Take the rest of the $ and put it in to my morgage. We then will file again in a few months. He says the second time we will get a new trustee and everything should be fine. I asked him what the worst that could happen, and he said I would lose the inheritance, So I guess I got nothing to lose? What do you guys think?

Well, you asked so here's what I think. You filed for BK, got an inheritance and are now trying to hide it from the trustee so you can keep it (in one form or another) while later discharging all of your debt. I think your attorney's willingness to send a representative to lie to the trustee is sickening and that attorneys like this are the reason the presumption of abuse exists. You could be headed for a far worse outcome than losing an inheritance and in my opinion you are playing with fire. What your attorney is suggesting goes beyond timing a bankruptcy... this is dishonest and it's gaming the system. If you decide to go along with this, good luck to you. You'll need it.

[pigpen75]

I think after reading your guys' post that I may tell my lawyer im going to the 341 meeting and tell the trustee about he inheritance. I don't want to have to be nervous about paying a huge fine or going to jail.

[debtmonster]

That's called Fraud
good luck

That's not fraud. Why can't the brother get the money? There's no harm in that.

[Help!]

That's not fraud. Why can't the brother get the money? There's no harm in that.

It's "fraudulent transfer of assets". Here you go:

"In bankruptcy, pursuant to 11 U.S.C. �548 (section 548 of the Bankruptcy Code), a fraudulent transfer is any transfer of any asset--or any interest in any asset (such as part ownership in a home)-- made within two (2) years prior to filing the bankruptcy case and in which either of the following are true: A. The transfer was made with actual intent to hinder, delay, or defraud any entity to which the debtor was or later became indebted to; OR B. the debtor received less than reasonably equivalent value for the exchange AND was insolvent on the date the transfer was made (or became insolvent as a result of the transfer). There are actual several other bases for the transfer to be considered fraudulent, but these are the most common. "

http://www.bklaw.com/asset-transfers.html

If pigpen follows her lawyer's advice, she would be refiling after transferring an asset with the intent to hinder repayment to creditors. The case trustee in our district would get the UST involved and this would end one of two ways... at best, the trustee would get the money back from the brother and not go after pigpen for fraud; or the case would be dismissed with prejudice under 707(a), motion for fraud.

Without recounting the nightmare that was our bankruptcy case, there are two things I learned having to defend our petition to the U.S. Trustee: (1) lawyers will give advice based on probability, e.g., likelihood of being "caught" and (2) the truth eventually floats to the surface (either to your benefit or to your detriment). If you explain the circumstances to the case trustee and believe in karma, maybe the trustee will work out something with you or that money will make its way back to you in the future. Money doesn't buy peace of mind...

[pigpen75]

It's "fraudulent transfer of assets". Here you go:

"In bankruptcy, pursuant to 11 U.S.C. �548 (section 548 of the Bankruptcy Code), a fraudulent transfer is any transfer of any asset--or any interest in any asset (such as part ownership in a home)-- made within two (2) years prior to filing the bankruptcy case and in which either of the following are true: A. The transfer was made with actual intent to hinder, delay, or defraud any entity to which the debtor was or later became indebted to; OR B. the debtor received less than reasonably equivalent value for the exchange AND was insolvent on the date the transfer was made (or became insolvent as a result of the transfer). There are actual several other bases for the transfer to be considered fraudulent, but these are the most common. "

http://www.bklaw.com/asset-transfers.html

If pigpen follows her lawyer's advice, she would be refiling after transferring an asset with the intent to hinder repayment to creditors. The case trustee in our district would get the UST involved and this would end one of two ways... at best, the trustee would get the money back from the brother and not go after pigpen for fraud; or the case would be dismissed with prejudice under 707(a), motion for fraud.

Without recounting the nightmare that was our bankruptcy case, there are two things I learned having to defend our petition to the U.S. Trustee: (1) lawyers will give advice based on probability, e.g., likelihood of being "caught" and (2) the truth eventually floats to the surface (either to your benefit or to your detriment). If you explain the circumstances to the case trustee and believe in karma, maybe the trustee will work out something with you or that money will make its way back to you in the future. Money doesn't buy peace of mind...

Yea, I need some peace of mind. It bothers me that I will be paying for most of my debts with the inheritance and still have a scarlet letter on my credit report for 10 years. However, my nerves are shot at thinking that I may get caught and go to jail, its just not worth it.

[pigpen75]

***UPDATE***

The Trustee made a deal and said he will allow $6k to be exempt. My lawyer said we can still fight for the whole thing but we may end up with nothing, especially since the insurance policy is civilian and not miliatary. So i think I made out pretty good.

[StartingOver08]

Congratulations on making the right decision! I bet you can rest easy now that it is all out in the open. I don't see how the attorney can fight it because the Trustee's look for inheritances every day and the BK law is very specific on who gets the money!

I am sorry that your father has passed and you had to go through these terrible ordeals at the very same time. But it sounds like things are beginning to look up for you.

[pigpen75]

Congratulations on making the right decision! I bet you can rest easy now that it is all out in the open. I don't see how the attorney can fight it because the Trustee's look for inheritances every day and the BK law is very specific on who gets the money!

I am sorry that your father has passed and you had to go through these terrible ordeals at the very same time. But it sounds like things are beginning to look up for you.

Thanks and things are getting even a little better. Mine and my wifes student loan banks filed proof of claims for the remaining $20k so a chunk of that inheritance will go to our stu loans.

[StartingOver08]

So there is a silver lining to your troubles! As least some of the student loan debt will be reduced. Good luck to you and your wife.