A gift vs. a transfer

[frogger]

Don't even think of going there. The trustee will be looking at bank account statements, etc and will see the transfer anyway. I had to provide a year of bank account statements. Some people have to provide two years worth if the US Trustee gets involved. Some only have to provide six months worth, but why take that risk? Not listing the transfer would be fraud and could get your case dismissed. (and is also a crime)

Great advice.

Either wait 18 more months or be prepared to fully disclose it and deal with it.

[MakinMeCrazy]

hello
I'm not tryign to hi-jack this post BUT I have a question also about this.......on the Statement of financial affairs.........it usually say 2 years IMMEDIATELY before filing..........so what do they mean by that? say i gave soemone (my son) a large cash gift in April 2008 BUT I am filing in Sept 2010.........do I use the dating as from SEPT or APRIL or JAN2008??? I guess my question is.what do they consider IMMEDIATELY?? thank you all in advance

[waves4storm]

What will happen if you get a gift amount like 30,000 and to pay one creditor like SBA within 90 days

[justbroke]

It depends on whether the Trustee tries to attack that as a preferential transfer. Just means that you preferred one creditor over others. For secured creditors, such as the SBA, it seems that they are treated different because they would get money putting them into a better position than other similarly situated creditors. This is especially true when comparing against the unsecured creditors.

SIMPLE RULE IN BANKRUPTCY: do not move money around just before filing. Do not transfer any property (which includes money) just before filing. The lookback can be 90-days to a year or more depending on the type of creditor receiving the preference. Always seek legal counsel on this issue.

Just don't do it. If you want to deal with the SBA after your bankruptcy by borrowing money, then you can go to that. But be very very careful when doing any pre-bankruptcy planning. It's best to consult with a qualified attorney who is licensed in your State. Bankruptcy planning is not necessarily a bad thing, but bad things can result if you plan poorly.

Bottom line: paying a preference to a creditor is a waste of money if the Trustee claws it back anyhow and distributes it pro-rata to the other creditors.

Please seek qualified legal advise before doing anything with money or property. Do not rely on anything you just read on the Internet, even from otherwise qualified legal advisors. They are not your attorney. The facts may not apply in your case. Fraudulent and preferential transfers are a fertile ground for Trustees.'

despritfreya may have something different to say, but my thought is to never play around just before filing.

[despritfreya]

I don't have much more to add to what JB posted. Before you do anything, discuss with a qualified attorney. Even paying the SBA and waiting 91 days to file can be problematic. If you are paying the debt for the benefit of your entity, the look back period could be extended to 1 year as your entity is an "insider". Note that question 8 on the Statement of Financial Affairs asks:

"Within 1 year before you filed for bankruptcy, did you make any payments or transfer any property on account of a debt that benefited an insider? Include payments on debts guaranteed or cosigned by an insider."

Des.