How could the trustee KNOW??

[uneasy]

Hi again.

Another question. I know I'm not supposed to pay back money borrowed from family if I'm not paying other creditors. I haven't made any cc payments in months, but I haven't filed yet, and am wondering this--

If, before I file, I take cash out of the bank and pay people back in small(ish) increments, how could the trustee know?? I know there are all of those things about having to swear under oath that you didn't do this, but, hypothetically, let's just say I did. And IF I did, who would know? How COULD they know? If I take $500 out of the bank every now and then months BEFORE I file, would anyone ask what I spent that on?? Would anyone even know or ask what I was doing with my money 5, or 6 or 7 months before filing?

Thanks again.

I am Uneasy. . .

[jessegirl]

Hi again.

Another question. I know I'm not supposed to pay back money borrowed from family if I'm not paying other creditors. I haven't made any cc payments in months, but I haven't filed yet, and am wondering this--

If, before I file, I take cash out of the bank and pay people back in small(ish) increments, how could the trustee know?? I know there are all of those things about having to swear under oath that you didn't do this, but, hypothetically, let's just say I did. And IF I did, who would know? How COULD they know? If I take $500 out of the bank every now and then months BEFORE I file, would anyone ask what I spent that on?? Would anyone even know or ask what I was doing with my money 5, or 6 or 7 months before filing?

Thanks again.

I am Uneasy. . .

Well, i would think that if you take out 500.00 every now and then, yeah i might raise an eyebrow. Just take out little bits until you get enough to pay that person. How much do you owe out?

[uneasy]

I owe 3 different people a total $12,000. I'm thinking that if I can give each of them at least $1,000, I would feel better and they would know that I'm at least trying. What if any withdrawals were before the the 6 mo lookback? I think any case I might file would probably pretty straightforward . . . I don't think much about my case would raise many red flags.

[jessegirl]

I owe 3 different people a total $12,000. I'm thinking that if I can give each of them at least $1,000, I would feel better and they would know that I'm at least trying. What if any withdrawals were before the the 6 mo lookback? I think any case I might file would probably pretty straightforward . . . I don't think much about my case would raise many red flags.

Well hitting your account up for 500.00 6 times may raise a red flag. Its hard to say. Some trustees are alittle more lax then others. I would say if you go food shopping hit it for 100.00 more and then go to debit and hit for another 100.00 here and there but it should be spaced out.

The only thing if the trustee is going to ask you if you owe anyone, what are you going to say? What happens when your attorney asks that? Also, if any of them show up at your 341 you are screwed. Just be very careful. I am a firm believer in telling the truth, cause eventually it comes back to bite you in the ass. Goodluck. Why can't you just pay those people back once your case is over? Are they family? Can't they wait?

[CCCrazy]

It's my understanding that once you get into your BK, depending on your circumstances, the trustee could end up asking you for 1 year of bank statements, 2 years, and you have to give them to the trustee.

[uneasy]

Honestly, everyone can wait. But, I felt bad borrowing the money and won't feel good until it's all paid back. I've also read here many times that I shouldn't have any money in the bank when I file. Well, I certainly had some when the month started, where am I going to say it all went if they go back further than 6 months?

[DebtStinks]

How soon are you looking to file? There is nothing that says you can't pay people back after you file for bankruptcy and have the extra disposable income to do it. It would also prevent you from getting caught in possible fraudulent looking transfers which are grounds to have your case dismissed.

The bankruptcy code permits the recovery of payments to insiders (relatives, friends, etc) made within a year of the bankruptcy filing. Not sure about you but I would rather talk to my family or friends and just let them know you can start making regular payments in a few months instead of trying to sneak something though and having the trustee come and take the money back from them.

[landofpoor]

I owe 3 different people a total $12,000. I'm thinking that if I can give each of them at least $1,000, I would feel better and they would know that I'm at least trying. What if any withdrawals were before the the 6 mo lookback? I think any case I might file would probably pretty straightforward . . . I don't think much about my case would raise many red flags.

Spose you paid em now.What would it hurt to wait a year or 2 to file?I am waiting long as posible because of several cash advances I have done without income comin in. sure you will have to deal with phone calls etc but your credits already in the bin

[jessegirl]

Honestly, everyone can wait. But, I felt bad borrowing the money and won't feel good until it's all paid back. I've also read here many times that I shouldn't have any money in the bank when I file. Well, I certainly had some when the month started, where am I going to say it all went if they go back further than 6 months?

They will see what it went on when they ask for the bank statements. You have to tell the truth. What did you spend it on?? Did you pay back anyone already? If so then that would be a problem and then you will have problems like preferental payment.

[uneasy]

They will see what it went on when they ask for the bank statements. You have to tell the truth. What did you spend it on?? Did you pay back anyone already? If so then that would be a problem and then you will have problems like preferental payment.

Honestly, here is what I have spent some of it on: a used freezer so that I could stock up on bulk food before I file, food to fill the freezer, a used bike because I am trying to cut down on my gas expenses, a pair of running shoes because mine have holes in the soles, a trip to the dentist, and a few more pretty necessary things. This stuff will fly, right?

[landofpoor]

They will see what it went on when they ask for the bank statements. You have to tell the truth. What did you spend it on?? Did you pay back anyone already? If so then that would be a problem and then you will have problems like preferental payment.

Ok so if they go back say even 5 yrs of bank statements anywheres of lotof 200 too 500 withdrawls. You know you put fuel in car etc pocket money maybe casinos etc you know what I mean theres gona be no receipts for that type of stuff

[landofpoor]

Honestly, here is what I have spent some of it on: a used freezer so that I could stock up on bulk food before I file, food to fill the freezer, a used bike because I am trying to cut down on my gas expenses, a pair of running shoes because mine have holes in the soles, a trip to the dentist, and a few more pretty necessary things. This stuff will fly, right?

I think you will be fine there at least I would hope you would be.

[landofpoor]

How soon are you looking to file? There is nothing that says you can't pay people back after you file for bankruptcy and have the extra disposable income to do it. It would also prevent you from getting caught in possible fraudulent looking transfers which are grounds to have your case dismissed.

The bankruptcy code permits the recovery of payments to insiders (relatives, friends, etc) made within a year of the bankruptcy filing. Not sure about you but I would rather talk to my family or friends and just let them know you can start making regular payments in a few months instead of trying to sneak something though and having the trustee come and take the money back from them.

Think this is best advice yet!

[jessegirl]

Ok so if they go back say even 5 yrs of bank statements anywheres of lotof 200 too 500 withdrawls. You know you put fuel in car etc pocket money maybe casinos etc you know what I mean theres gona be no receipts for that type of stuff

But these withdrawls will not be 5 years ago. This person is looking to file a bk in months nto 5 years from now.

I am just giving my opinion and have been thru a shxx load of stuff with my BK - don't do anything you think you have to question. You cannot pay loans off before you file and expect to get away with it. The trustee will pick up on things like that. Look lets face it- if you are filing a bk, taking out 500.00 withdrawls every now and then shouldn't be. Most people are scrapping money just to pay bills and necessities to survive, not paying someone back.

I am giving them my opinion, they can do whatever they want.

[AngelinaCatHub]

HELLO, I'M BAAAACK:

Take it from one who knows, I had to pay my god-daughter and son-in-law twice. Once to them and when the Trustee found out, rented his lawyer (which I have to pay) and located this transfer, I get to pay it again. To the Trustee. PLEASE keep this in the white light. Get the Chapter 7 book from Nolo Press for about 17 bucks downloaded in PDF. nolo.com You cannot work this system, or it will work you. There is nothing new under the sun. GBWY 'Hub