Depositing a LARGE check after filing????

[AngelinaCat]

Okay. I think this thread has run its course, and I am closing it. The OP has his/her answer no matter how many times he/she rearranges the question and asks it again, because the answers aren't what he/she wants to hear. Thank you for your patience.

[tobee43]

Well, what happened is that either the people who owed the money to the person who filed for BK paid the Trustee in full what was owed, made payment arrangements with the Trustee or filed for BK themselves. Because filing for BK is the only way to avoid paying the Trustee the money.

Winning a lottery the day after filing does not compare because that is not money owed to you or cash in hand on the day of filing. An account receivable on the day you filed BK is clearly an asset of the BK estate.

yes, i agree, it is....actually...i think in the case i was talking about the bk is still attempting to settle.....and once again, you're collect if and when there is any settlement from those receivables the trustee will, keep and distribute as he/she fits.

[helpmeout]

well...actually it does........that is because i was assuming this was a NO asset case.....

if you inherit anything or win the lottery 6 months after your discharge, you don't to notify the court.

however, on the flip side side of the coin...and i think you made me think about your point...is this....this person giving back this 15k should have been listed on the bk as you stated and then that person is longer obligated to the debt as you point out.

the other intersting aspect of this, is i have seen on case where the trustee assigned "special" council because the client bk listed....approx. 4 million in receivables owne to him!! so of course the bk court went after the crediors because they wanted that money....i never found out what happened in the end.

Well, what happened is that either the people who owed the money to the person who filed for BK paid the Trustee in full what was owed, made payment arrangements with the Trustee or filed for BK themselves. Because filing for BK is the only way to avoid paying the Trustee the money.

Winning a lottery the day after filing does not compare because that is not money owed to you or cash in hand on the day of filing. An account receivable on the day you filed BK is clearly an asset of the BK estate.

[tobee43]

I think what you are failing to grasp is that the fact that this person owes the OP money means he MUST list it on his petition, or be committing fraud. You must list those whom you owe and those who owe you money. You have an outstanding debt owed to you, that is an asset. You OWE, that is a liability. It is all required to be disclosed in the bk. Even if you don't GET the money for months, it is still money owed to you and is an asset. You can slice the pie as many times as you want, you can top it with whipped cream, you can serve it hot or serve it cold. It is still pie. It is the law, and whether a person chooses to go by the letter of the law or not when filing bankruptcy is up to them. Personally, I'm not going to hang a rock to my neck and jump from a cliff into deep water. Just my personal opinion.

i think so as well......and actually if this creditor was "smart".....they wouldn't owe back the debt....provided of course they were listed...i know there is some discussion about that on this forum...but just see what happens when a creditor comes after you and 2 years after your discharged you are asked to prove they were in included in that bk....

so i agree....they SHOULD be listed.

[tobee43]

well...actually it does........that is because i was assuming this was a NO asset case.....

if you inherit anything or win the lottery 6 months after your discharge, you don't to notify the court.

however, on the flip side side of the coin...and i think you made me think about your point...is this....this person giving back this 15k should have been listed on the bk as you stated and then that person is longer obligated to the debt as you point out.

the other intersting aspect of this, is i have seen on case where the trustee assigned "special" council because the client bk listed....approx. 4 million in receivables owne to him!! so of course the bk court went after the crediors because they wanted that money....i never found out what happened in the end.

[free2breathe]

I think what you are failing to grasp is that the fact that this person owes the OP money means he MUST list it on his petition, or be committing fraud. You must list those whom you owe and those who owe you money. You have an outstanding debt owed to you, that is an asset. You OWE, that is a liability. It is all required to be disclosed in the bk. Even if you don't GET the money for months, it is still money owed to you and is an asset. You can slice the pie as many times as you want, you can top it with whipped cream, you can serve it hot or serve it cold. It is still pie. It is the law, and whether a person chooses to go by the letter of the law or not when filing bankruptcy is up to them. Personally, I'm not going to hang a rock to my neck and jump from a cliff into deep water. Just my personal opinion.

[msm859]

Why don't you get rid of the money - legally. Max out a roth IRA. What state do you live in? can you buy some exempt assets - car perhaps? stock up on household supplies. 15k is not a lot of money to get rid of.

[helpmeout]

i so absolutely agree....that's why if the friend waits to pay him back in 6 months well........ it's not fraud....or is it????.......just knowing it,...does suggest it.... personally, i couldn't do it because i can't even lie about how many cookies i ate....

Because it doesn't matter when he gets paid back. That account receivable is an asset if the BK estate. The Trustee will go after it unless he can exempt it.

[stratos]

What about this option -- First, don't file now. Deposit the check; live like usual, spending the money on usual living expenses. If it's gone in 8 or 9 months, or a year, and you're still in a position where you need to file bk, do it then. If you use the check on normal expenses, it wouldn't be a fraudulent transfer. And it won't count in your CMI if you wait more than 6 months. Does anyone see something I'm missing?

If you file now, you're going to have to give up the money to the trustee (i.e. your creditors) unless that much money is exempt in your jurisdiction.

Are you even sure the check is going to clear?

[newbie2]

exactly....i would never take the chance..........

i mean...really...why can't your friend pay you back in six months after your discharge???????

Tobee, it is still an asset now (the amount owed to him by this friend) and has to be disclosed. Waiting until 6 months after to collect is still considered fraudulent if the OP does not disclose the amount owed to him in his petition,

[tobee43]

Call your attorney immediately and disclose this to him.

What friend could have owed you $15K for a long time and magically came up with the money 5 days before you file bankruptcy?

really good point....and that point may really open a bag of worms for anyone.

i know personally, i wouldn't even lend my kids 15k....i would GIVE it to them...but never lend out or even during our best times could.

[OhioFiler]

Call your attorney immediately and disclose this to him.

What friend could have owed you $15K for a long time and magically came up with the money 5 days before you file bankruptcy?

[tobee43]

The OP is doing nothing more than trying to figure out a way for him to be ok with hiding an asset. The question keeps getting asked in different ways, yet the answer is always the same.

No one here is going to justify what you're trying to do. You're looking for a way to commit fraud and not get in trouble and not get caught.

You're going to do what you're going to do. My guess is that you're going to attempt to hide the asset......

i so absolutely agree....that's why if the friend waits to pay him back in 6 months well........ it's not fraud....or is it????.......just knowing it,...does suggest it.... personally, i couldn't do it because i can't even lie about how many cookies i ate....

[frogger]

The OP is doing nothing more than trying to figure out a way for him to be ok with hiding an asset. The question keeps getting asked in different ways, yet the answer is always the same.

No one here is going to justify what you're trying to do. You're looking for a way to commit fraud and not get in trouble and not get caught.

You're going to do what you're going to do. My guess is that you're going to attempt to hide the asset......

[tobee43]

If I remember correctly, the trustee does ask if anything has changed since you filed. I owuldn't touch this with a ten foot pole. I'll let the experts help you out but I would think you would wait until that check was off the radar, say a year or so. Hiding assets is the worst thing you can do and don't kid yourself that they won't find out. You are under oath when you declare that everything you say is truthful.

I would not take the chance of jail.

exactly....i would never take the chance..........

i mean...really...why can't your friend pay you back in six months after your discharge???????