Can I pay family back??

[tcreegan]

Hi all, Hi ACER

...if I am not mistaken, all of your tax refund is exempt in Fla. Check Florida statute 222.25

Put it in the bank, exempt it, pay your family back after your case closes.

Hope that works for you!

Tom in Colo

ps: Want to check up on "co-mingling" ...sometimes when money from source X gets mixed with the rest of your money it loses status as being from source X Not always, but better safe than sorry.

[debee]

Since you and your fiance have been living together for 7 years and have two kids together, you may be a "household" which makes his expenses "household expenses". Your attorney should know what constitutes a household in your jurisdiction. Good luck!

[despritfreya]

In response to:

“I owe a lot of money to my family. . . and I promised to pay back this time around. . . My attorney says I cannot pay back the family. . . My family is supper upset. How will they know I have paid family or what I have done with my money?. . . Some of the things I am paying for are not in my name, they are in my fiance's name. . .Will they question this? . . . My attorney says. . .that I can put the money I owe my family in my account and wait 30 days to pay them.”

All of the above responses are correct. I just wanted to add the following to put this into perspective:

1. You cannot protect a family member over any other creditor. While you promised to pay them back you made the same promise to the credit card company when you used the cc and the cc company is just as upset as the family member that it is not getting paid. All creditors must be treated the same. And, yes, the Trustee will find out by asking how you spent the refund.

2. The payments you have been making to or for the benefit of your fiancé over the past two years should be disclosed as transfers on question 10 of the Statement of Financial Affairs. The amount paid is recoverable by the Trustee as a “fraudulent conveyance” (not a preference - unless you actually borrowed $$ from the fiancé -then it would be a 1 year period and listed on question 3c). A fraudulent conveyance in your situation is an “unequal exchange for value” - you “gave away” cash and got nothing in return.

3. If you can exempt funds sitting in the bank in your jurisdiction then holding the $$ works. The 30 days comes in as follows: A Trustee has 30 days from your 341 meeting to object to an exemption. However, I agree that you should do nothing with the funds until the case is closed. At that point, feel free to pay any creditor.

4. Lastly, you family members need to be listed on Schedule F as creditors.

Des.

[1ginger]

When I did my bankruptcy in Michigan. It was the day of our hearing... the lawyer handed us a form of the questions we will have to answer. One of the questions aksed if we gave any money to family members in the last.... My husband and I asked our lawyer, what should we say. We did give his parents money to pay them back for the money we borrowed for the bankruptcy attorney. She said it is up to you what you say. Basically they wouldnt know is what she was saying in a round about way. Well my husband and I didnt feel comfortable lying. We were so greatful to be getting rid of the debt. So in the early questions it was asked. And I said yes. By the way the Judge looked I dont think he ever heard someone say that before. I said we payed back my husabands parents for the money we borrowed for the bankruptcy attorney. He looked at my lawyer and said I just want you to know that I am fine with that, and when you go back to our main lawyer that you can tell him to that I am fine with that. Our main lawyer couldnt be there that day... so we had a fill in from his office. It felt good that my husband and I got to be honest. And the fact that we got to pay his parents back for the money we borrowed. It was hard enough asking them for the money.

[helpmeout]

Keep receipts and ask your attorney about the security deposits, you may have to use some of your exemptions for them.

[ACER9103]

I was also wondering, I have to pay over $2000 to move into a new cheaper home to rent, and I have to buy a fridge for the place as well, and pay electric deposit, water deposit, etc. Should I get receipts for everything. Will the trustee ask for receipts? Also I have 2 bank accounts will they require statements from both accounts? Do I have to put that I have both accounts? Sorry for the 20 questions =)

[ACER9103]

Oh, okay, yeah I am in Florida, and my attorney says that I can exempt up to $6000 with a vehicle. So If I owe family $3700, that leaves me only $2300 for my van, and household goods. My van through Kbb says its worth $750. so hopefully my household things are not going to exceed the $6k.

[scorpion35]

Also, (Helpmeout) When you say "if you have enough exemptions to cover the cash on hand" what do you mean?

depending on where u live u can use exemptions up to a certain amount to protect cash.anything above the trustee can take it

[ACER9103]

Also, (Helpmeout) When you say "if you have enough exemptions to cover the cash on hand" what do you mean?

[ACER9103]

Wow, Thank you. I did tell my attorney, but the payments are less than $600, So she said it was okay, but I am trying to get as much info as possible. Wow this is gonna be a big mess.

[helpmeout]

What if I do the second part, wait some time before filing bankruptcy, and then the money will have been spent? Will they still go back and question me?

On the paperwork that I completed for my Chapter 7 it specifically asked about money that I borrowed and paid back to family members in the last year. If you file within a year of paying them back, yes, you will be asked. And yes, they will go after your family. Especially since it is over $600.

[helpmeout]

How will the Trustee know? Well, for starters, the Trustee is going to ask about your refund and where it went. You don't want to get caught lying.

What you can do, if you have enough exemptions to cover the cash on hand, is set aside the money and pay your family back after you have been discharged and closed.

Have you told your attorney about paying your fiance's credit cards? If not, I would. The Trustee is likely to go after that money as preferential payments.

[ACER9103]

Okay, I understand. They will not be happy about this one =(

[scorpion35]

What if I do the second part, wait some time before filing bankruptcy, and then the money will have been spent? Will they still go back and question me?

u CANNOT pay your family members PERIOD
and u will have to list them in your petition
stop paying your boyfriend's credit cards

[ACER9103]

What if I do the second part, wait some time before filing bankruptcy, and then the money will have been spent? Will they still go back and question me?