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Preferential payment exemption ?

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    Preferential payment exemption ?

    Does anyone have experience with preferential payments being used as an exemption ?


    We borrowed 1300 back in Nov from relatives and paid it back 2 weeks later. The money was borrowed only to make a payment to CCCS. We also paid 2200 about 150 a month over the past year to my MIL for a loan she gave us. We have not made a payment to her since Nov. My attorney listed 3500 as preferential payments and I am worried the trustee will try to make these people pay the money back. But he said we can just list them as an exemption since if we had not paid them we would still have the cash in theory to exempt as we only have 2000 equity in our house and the rest is left for wildcard exemption. We filed on march 3 and have not paid any relatives since nov and nov was the last time creditors received payment through CCCS. Am I worrying for nothing ? Has anyone on here ever had the trustee go after their relatives for the money ? Do you really think it can be listed as claimed exemption ?

    #2
    Evidently your attorney knows what he's talking about and the "wild card" can be used for many things......

    Hopefully you will exempt them as part of your cash exemptions........

    Hopefully, LUCKY YOU...............

    Preference payments to family (insiders) is a tricky thing.......

    Keep us posted.
    Minny

    "It's amazing the paths that our feet sometimes follow in life".

    My suggestions are from "personal experience" and research only. Do not consider this as legal advice. Each bankruptcy case is different.

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      #3
      Paid a friend for a funeral

      My husband died a month before I filed BK - a friend paid the funeral bill - I later paid her back - too soon unfortunately. The trustee is making her (or gave me the choice to do it) pay it all back and distribute it to the creditors. He said he'd let me make payments over the course of a year. Wish I could get out of that one!

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        #4
        Originally posted by BLogan
        My husband died a month before I filed BK - a friend paid the funeral bill - I later paid her back - too soon unfortunately. The trustee is making her (or gave me the choice to do it) pay it all back and distribute it to the creditors. He said he'd let me make payments over the course of a year. Wish I could get out of that one!

        That suxs. Did you not have any exemptions left to exempt the amount you paid her ?

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          #5
          Originally posted by BLogan
          My husband died a month before I filed BK - a friend paid the funeral bill - I later paid her back - too soon unfortunately. The trustee is making her (or gave me the choice to do it) pay it all back and distribute it to the creditors. He said he'd let me make payments over the course of a year. Wish I could get out of that one!
          How hard hearted!

          Did you repay within 180 days of close?? Or was it during the actual BK process before you got discharged and closed??

          I love how everyone keeps tossing that out,.......... "They'll let you pay it in payments."

          'Scuse me??!! But aren't we broke??!! Isn't that why we're here to begin with??!!
          Filed Ch 7 - 09/06
          Discharged - 12/2006
          Officially Declared No Asset - 03/2007
          Closed - 04/2007

          I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

          Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

          Comment


            #6
            Paying back a loan to a friend

            My BK is already closed - I think I paid her back just before I filed. Was there any cash exemption? I used up all the rest on personal belongings. With all the stress of the death/funeral I didn't even think about covering up paying her back.

            Sorry to say but now, without him, I have more money - his bills/spending was more than he made. Would it be better to pay back the money all at once or monthly? Did I read that the bankruptcy isn't officially over until all is paid - I don't want rebuilding my credit to be delayed any longer than I have too.

            Comment

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