The Case of the Disappearing Cash

[debee]

A below-median couple has 125k in non-exempt cash savings, and 125k in HELOC/CC debt. They want to file bk and they want to keep the cash. They put the cash into an annuity, wait two years and then file ch7.

How would the trustee know? Would the trustee know?

Is it possible that the lender associated with the HELOC would be able to raise the question as to the whereabouts of the cash if the heloc was predicated in some part on its existence?

(This isn't my situation by the way. I'm just trying to learn sumthin.)

[keepmine]

The trustee will know because, they're required to disclose all of there assets.
And, a creditor has the right to appear at the 341 and ask questions and they have a right to file an AP. Who knows if they'll pursue it or not.

[debee]

Thanks, keep. I get the creditor bit but what about the cash being moved from one account to another. The debtors would have to say they had an annuity (exempt in that state) but not that they USED to have some cash. Right? Aside from the creditor raising an objection, or a random audit, how else would the trustee know they had protected their assets?