Is this a preferential payment?

[lrprn]

I'm waiting to file BK right now, will probably do it around Feb/March of next year. The reason I'm waiting is because I gave my fiance $5000 in December. I thought that if I waited 1 year it would be okay.

Waiting at least a year to file would be best.

I gave him this money to pay for school but he still technically has it in his account so I can get it back no problem.

So he didn't use it to pay for school? If he does give it back, will your state exemptions protect that much cash? Or could you spend it down to what you could protect by using it to pay for legitimate living expenses before filing?

Another option could be to set up the $5K as a loan to your fiance with a witnessed loan agreement that he intends to repay the $5K with terms. This is something you need knowledgeable legal advice about though before trying it.

If I wait a year+ from the gift and file will we be in the clear? Are they going to take it anyway? It's the only thing that's keeping me from filing sooner.

Chances are if you wait 1+ years from the gift, you'll be ok. However, no one here can truly say that with 100% certainty. Your best bet is to ask 3-4 experienced bk lawyers in your area during your free initial consultations. They will be familiar with how your local court and trustees handle gifts like this before filing.

[NeedNewStart]

Thanks for the response.

So if I wait a year to file I'll most likely be in the clear. The worst thing that can happen is that the trustee would go after him for the money right? Or would it compromise my whole case?