No matter how anyone tries to wiggle out of it, this is an insider transfer of an asset. A debtor would have to show that their father gave them something in return, to the value of $25K to get our of it. E.g. sells a car worth $25K. Whether it is from a 401K, cash or even money borrowed from a credit card is irrelevant, as the cash is an asset. This transfer of an asset, must be listed in the statement of financial affairs; something signed under perjury. Gave him the money for safe keeping is simply not a defense. Regardless of what he did with the money, any UST can easily turn this into an attempt to hide assets from a creditor; which is fraudulent transfer. This is no different to giving a family member a car worth $25K for nothing.
Since it is a transfer of an asset, the look-back period is no longer one year but two years (Post 2005 act). I am sorry to say this but (unfortunately) you may have very well just lost your $25K. The transfer, including payments to your mortgage, could all be reversed and then redistributed amongst the creditors. You also need to think about your state's fraudulent transfers period, which can actually be even longer. The irony ToughSpot is, had you paid it directly into your account and then paid your mortgage, this would have only been a 90 day (case closed) look-back period.
What is done is done. The best thing you can do is just be totally upfront and honest with it.
Since it is a transfer of an asset, the look-back period is no longer one year but two years (Post 2005 act). I am sorry to say this but (unfortunately) you may have very well just lost your $25K. The transfer, including payments to your mortgage, could all be reversed and then redistributed amongst the creditors. You also need to think about your state's fraudulent transfers period, which can actually be even longer. The irony ToughSpot is, had you paid it directly into your account and then paid your mortgage, this would have only been a 90 day (case closed) look-back period.
What is done is done. The best thing you can do is just be totally upfront and honest with it.
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