Is the 12 month "gift" pull-back written in stone?

[Bobby'sGirl]

I have been searching and can't find the specific references to how far back the trustee can go to reclaim $$ given to friends/business associates as a "gift"...can trustee go back even farther than one year if it is part of a business deal, to sweeten the pot, so to speak ($5000 above and beyond a business transaction 27 months ago to be precise.) My lawyer is on vacation for the next several weeks until right before I file. I just realized this may come up with the trustee, or US trustee (shudder!) when a former business associate found out about my BK and contacted me.

Any info or links you super-sleuths can uncover would be appreciated. The main impact on me would be to complicate the BK, but would not be pleasant news for my former associates.

[lrprn]

The trustee can look back one year when a money payment or 'gift' is given to 'insiders' such as family, friends, corporate officers and directors, etc. The trustee can look back 90 days for 'non-insider' preference. For example, our lawyer told us not to pay any of our non-secured creditors more than a total of $600 in the 90 day period before we filed.

Check out http://www.credit-to-cash-advisor.com/news_95.html and http://www.moranlaw.net/preferences.htm for some solid information on preference payments.

[FoolAndHisMoney]

It's 90 days for preferential payments to unsecured creditors, 1 year for preferential payments to insiders, 2 years for transferred assets like cars, or real estate, but they can look back further, like 3 to 5 years if you transferred a large asset like a summer home to a relative if you were broke. While very rare I've read cases where a debtor was denied a discharge for transferring her only home to her brother 3 years before filing and she was broke when the transfer was made. It's one thing to give a gift when you're doing well and another to give anything away when you're flat broke. That just smells like fraud even 3 years prior. Another red flag is if you were to use the transferred property as if it were your own such as living in the same house you gave your sister 3 years earlier. These are very rare issues, but they do happen. A cash gift while you were financially stable over a year ago should be fine as long as you are over the year.

[Minnymouth]

I don't believe the gift 27 months ago will even be an issue..... shouldn't be.....

Rest easy, and be sure to mention it to your attorney just to make sure.....

[Bobby'sGirl]

Thanks for the posts.

Just a case of jitters in the last few days before filing, I guess...I think I've dotted all my i's and crossed all my t's, but with the new laws and some new guns in the US trustee's office, who knows for sure. Better go outside since it has cooled off at last and decapitate a few weeds....should work off some anger/anxiety/etc.

[Minnymouth]

LOL,
I''m all the time telling my frustrated roommate - mow first, trim, and then pull weeds - You'll unwind!!!!!!