Presumption of Fraud and recent loan

[ptaav]

Hi,

I'm filing pro se in response to a garnishment on my wages, mounting medical debt and the impending end of any deferments i have on approximately 64k in student loans. I filed on the 4th of this month, with my 341 hearing scheduled for the first week of May. In March I refinanced a Onemain Finanical loan to pay off a check advance and a travel loan made through my work. This paid off the remaining balance on my previous loan, gave me enough to pay off these two outstanding debts and some left over. I have since filed Chapter 7 in an attempt to keep my wages from being garnished. I have made one payment to the loan since then, but have stopped since filing. Would this raise flags in the Trustee's eyes in terms of fraudulently incurring the debt? Should I be worried about my case being dismissed? Does anyone have any experience or have any tales to tell about situations like this?

Thanks for any advice.

[LadyInTheRed]

It's not the trustee you need to worry about. It's the creditor who you borrowed from in March. Your entire case would not likely be dismissed because of it. But, the creditor could file an AP to have that particular debt ruled non dischargeable. See 11 USC § 523 (a)(2)(C) for a description of the kinds of charges that are presumed to be nondischargeable if the creditor files an AP.

If the debt you paid off was more than $600 to one creditor, did you list it on your Statement of Financial Affairs? That is something the trustee might go after. But, they will go after the creditor who received the payment, not you.

[ptaav]

I did list it on an amended Statement of Financial Affairs which I mailed to the US Trustee, the Trustee and the Court.

[despritfreya]

In addition to what Lady stated, you indicated you had $$ left over. Did you list the cash on Schedule B (either sitting at home or deposited into a bank account)? Also, if listed did you find an exemption to protect the $$. If not exempt you probably need to give the $$ to the Trustee. How much did you have as of your filing date - if any?

Des.

[ptaav]

At my filing date, I had approximately $600 of co-mingled funds left over. I claimed these as exempt under Virginia's unused homestead rule. As for being able to directly trace the funds, I spent them on basic living necessities, daily expenses.