Can you help me understand this?

[okiemom2008]

I finally was able to talk to my lawyer about that 6600 cash advance I took off my moms credit card in June and then paid back when my husband cashed out his retirement.

He said that when we met with the trustee in Jan when we file, we could tell them that we will settle for 3000 or so just so they do not contact my mother...do you think they will still call her or does the trustee do all that after we meet him?

Also...if I am only allowed 2000 in my bank account how am I supposed to have 3000 to pay him that day?

And just one more thing...My mom also co-signed on a private student loan that I cannot get consolidated into my husbands name..I have tried but the student loan companies are not taking applications right now I guess because of the economy. I am not going to list that on the discharge since it is a student loan and because my mother is not knowing about the bk.....I read on here where people you do not list will still know you filed...will they still car or send her a letter? Everytime I am like 2 days late they send her a letter and me a letter...I am thinking about just paying it of before I file if I can come up with the money but that might throw up red flags also to the trustee, right?

Thanks in advance! This board is awesome

[liz417]

The Trustee may let you make payments on the money.

[lrprn]

He said that when we met with the trustee in Jan when we file, we could tell them that we will settle for 3000 or so just so they do not contact my mother...do you think they will still call her or does the trustee do all that after we meet him?

Tough situation. A lot depends on your trustee. He could go after the whole $6K, or he might settle for $3K. Your lawyer is the best person to know how the trustees in your local court might react.

The trustee doesn't notify your mom, the court does after you file by mail. If the trustee wants to take the $6K, he/she will then contact your mom m most likely after your 341 meeting.

Also...if I am only allowed 2000 in my bank account how am I supposed to have 3000 to pay him that day?

Most trustees set up payment plans. Your Ch 7 wont' be closed until you've paid the $3K in full.

My mom also co-signed on a private student loan that I cannot get consolidated into my husbands name..... I am not going to list that on the discharge since it is a student loan and because my mother is not knowing about the bk.....

You must list EVERY debt you have, including this student loan. If your trustee finds out you left it off, that's grounds to dismiss your bk - something to avoid at all costs. Since the student loan is very likely on your credit report that's included in your filing, this is an easy omission to spot so do not deliberately leave this student loan off when you file.

I read on here where people you do not list will still know you filed...will they still car or send her a letter? Everytime I am like 2 days late they send her a letter and me a letter...

All owners of the debts listed on your filing papers will be notified by the bk court when you file. If your student loan is listed, since it's co-signed by your mom, she'll be notified by the bk court after you file.

I am thinking about just paying it of before I file if I can come up with the money but that might throw up red flags also to the trustee, right?

Since I'm sure your student loan is more than $600 (the maximum allowed to pay a creditor in the 90 days before filing), you are setting yourself up for a big can of worms here. You are paying an insider (your mom) within 90 days of filing which means the trustee can go after every dime you paid her and force her to give it all back to distribute to your creditors equally.

This is the time to bite the bullet. Tell your mom what's really going on. You are digging yourself into much deeper trouble trying to keep this secret. Your mom is going to find out anyway, and as a mother myself I'm sure she would rather hear the truth from you then from your trustee when he comes after the money you paid her for your student loan.

Come clean about your financial troubles and your plan for fixing them - your mom might surprise you. Make a deal with her about how you are going to pay her back after your case is discharged and closed, then make sure you follow through. Will she be disappointed? Initially she will. But I'm betting she'll also end up respecting you for telling a difficult truth and taking responsibility for the choices made.

[okiemom2008]

Tough situation. A lot depends on your trustee. He could go after the whole $6K, or he might settle for $3K. Your lawyer is the best person to know how the trustees in your local court might react.

I would pay the 6k just to not have them go after her.

The trustee doesn't notify your mom, the court does after you file by mail. If the trustee wants to take the $6K, he/she will then contact your mom m most likely after your 341 meeting.

Even If I pay they will still go after her?
Most trustees set up payment plans. Your Ch 7 wont' be closed until you've paid the $3K in full.

You must list EVERY debt you have, including this student loan. If your trustee finds out you left it off, that's grounds to dismiss your bk - something to avoid at all costs. Since the student loan is very likely on your credit report that's included in your filing, this is an easy omission to spot so do not deliberately leave this student loan off when you file.



All owners of the debts listed on your filing papers will be notified by the bk court when you file. If your student loan is listed, since it's co-signed by your mom, she'll be notified by the bk court after you file.



Since I'm sure your student loan is more than $600 (the maximum allowed to pay a creditor in the 90 days before filing), you are setting yourself up for a big can of worms here. You are paying an insider (your mom) within 90 days of filing which means the trustee can go after every dime you paid her and force her to give it all back to distribute to your creditors equally.
Yes it is for 6300. It is a private student loan. I would pay it off directly to american education services...my name is on the loan but she co-signed it for me. If I paid it off before February when I file would I still have to list it and would they still contact her?

This is the time to bite the bullet. Tell your mom what's really going on. You are digging yourself into much deeper trouble trying to keep this secret. Your mom is going to find out anyway, and as a mother myself I'm sure she would rather hear the truth from you then from your trustee when he comes after the money you paid her for your student loan.

I don't feel embarassed about it or anything like that. I just am already having problems with my parents trying to control my husband and me and our son. They have been on a "time-out" somewhat because they try to tell us what to do. If they found out about the bk, I would get all kinds of unwanted advice and they would never let it go. I am just trying to avoid that as I feel it will make a already stressed situation more stressful. Plus, inthe future anytime my husband and I have something they will bring up that maybe we should not have bought that since we messed up in the past by doing those things..stuff like that
Come clean about your financial troubles and your plan for fixing them - your mom might surprise you. Make a deal with her about how you are going to pay her back after your case is discharged and closed, then make sure you follow through. Will she be disappointed? Initially she will. But I'm betting she'll also end up respecting you for telling a difficult truth and taking responsibility for the choices made.

Thanks for the advice!

[GreenInkOnPaper]

I totally understand about the parental situation. But, do what's best for your family financially. Let 'em give all the unsolicted advice they want. It's just words. Include the student loan in the bk, but continue payments if you don't want them to come after your mom. Good luck!!