transfering funds to a different account

[norcal]

I owe my parents money and hadn't started paying them back yet. My lawyer told me to not pay any money while we are in the process of filing and to also not make any payments to them until after we are discharged. They will be listed as a creditor on my bankrupty.

[junquemayle]

Where did you get that from? Once your discharged, you can do whatever you want with your money. The money being paid back to "insider" creditors "after" BK is not part of the BK estate, there is no such look forward objection that I am aware of. Maybe you can enlighten us.

I think he meant before and during, rather than after.

This thread reminds me that I have been making monthly $250 payments to a family member for a debt that has no paperwork (I borrowed $30k for a house renovation). I can still pay him back after BK. But what about during - would the Trustee pay without any documentation??

[HHM]

preferential treatment is paying back one particular creditor while not paying other creditors in the same proportion. This is true before or AFTER bankruptcy. Do NOT pay back family members after you discharge debts you owed them before the bankruptcy. Doing so is preferential treatment and would cause an objection from the other creditors. You must treat all creditors (family members or not) the same before and after the discharge.

Where did you get that from? Once your discharged, you can do whatever you want with your money. The money being paid back to "insider" creditors "after" BK is not part of the BK estate, there is no such look forward objection that I am aware of. Maybe you can enlighten us.

[Scholar]

preferential treatment

preferential treatment is paying back one particular creditor while not paying other creditors in the same proportion. This is true before or AFTER bankruptcy. Do NOT pay back family members after you discharge debts you owed them before the bankruptcy. Doing so is preferential treatment and would cause an objection from the other creditors. You must treat all creditors (family members or not) the same before and after the discharge.

[isla1]

thanks

Thanks Nicole, I totally understand!

[nichole04]

All I was saying is that I paid my dad back money last April that I borrowed from him a few months prior. I was just trying to be helpful in that my lawyer said I needed to wait to file bk this coming April to put a year behind the time I paid him. When I paid him last April I wasn't even thinking about filing bk. I had a small business that went under in December and that is why I am filing. I am not or was not in any way trying to hide assets before filing. Just wanted to clear things up. Thanks.

[AngelinaCatHub]

Thanks to all! I appreciate everyone's comments and advice. I just got The Nolo BK book. Will read it from cover to cover!

That's a GREAT start. We all wish you good fortune. Keep us posted. 'Hub

[isla1]

good Advice!

Thanks to all! I appreciate everyone's comments and advice. I just got The Nolo BK book. Will read it from cover to cover!

[AngelinaCatHub]

Isla1 and Nichole04, I'm confused.....

Either of you, or both of you, or whomever you both are, it is plain and simple. IF you have funds currently in a bank or other source as the first post mentioned, it MUST be declared. This thread is becoming a bit unclear and convoluted. If you wish to pay back a relative, wait to do so after your discharge. Something is not ringing right as I feel it. 'Hub

[backtoschool]

Jeez, the last thing I would want is to commit a crime and go to jail!!! This economy has taken alot from us little guys and I'm just trying to figure out how to legally get out of a financial mess and avoid living in a tent city.

Transferring any money to any family member will cause you to have to wait a year to file or the trustee will simply go after the family member for the money.

The trustee's are trained to look very closely for transfers to friends and family members. I ended up an asset case due to two $500 checks that I wrote my mother to help her with her bills. I was also asked at my 341 about every deposit or check I wrote over $500 or so that went to a person (as opposed to a business, etc...)

You will not get out of your "mess" (your word) if you give your money to your family for safekeeping. The trustee will take it anyway, and you will have your case very closely examined.

[HHM]

The look back on preferences (to insiders, e.g. family members) is 1 year.

See section 547 of the BK code

However, as I said before, if you actually make the payment with the intent to hide it from BK, that is still fraud no matter how long you wait.

It's the date you pay your father back that is important, not when you borrowed.

[isla1]

No Jail Cells!!!!

Jeez, the last thing I would want is to commit a crime and go to jail!!! This economy has taken alot from us little guys and I'm just trying to figure out how to legally get out of a financial mess and avoid living in a tent city.

[isla1]

Got It!

Preferential payment! That's how it should have been presented to the forum! I'm in Mo and no I didn't know that BK might be an option in my future. Thinking it would be better to wait awhile, maybe a year.

[frogger]

I still don't think you're quite getting it.

Obviously not.

isla1 - you're talking fraud. No one here wants to share a jail cell with you.

[BobMango]

I paid my dad $3000 I borrowed from him almost a year ago and my attorney told me that he wanted me to wait until the whole year went by before I file my chapter 7. However, I did not know almost a year ago that I would be filing bk and I was just paying money back I borrowed.

That's not fraudulent, it a preferential payment. Big difference.