hmta1982 Posted March 26, 2012 Report Share Posted March 26, 2012 Hi-- I received tax refund this year and I pay back to some of my friends in cash. Now I file Ch.7 They asked me what is my friend name and address because why I have money then I don't pay back to them? I am in Debt consolidate program. Can credit card call my friend to ask money from my return to them? As my lawyer say so? Do any one know about this case?Thank you for any reply. Link to comment Share on other sites More sharing options...
Coltfan1972 Posted March 26, 2012 Report Share Posted March 26, 2012 The credit card company can't, but the BK court can and will, if they determine it was a preferential payment, which obviously it was. Can you not just hold out for 60 days to let all this stuff clear? Why rush when there are issues like this outstanding. BK is going to wipe it all out, who cares if there are some additional late fees or interest added, it's all gone anyway. Link to comment Share on other sites More sharing options...
hmta1982 Posted March 26, 2012 Author Report Share Posted March 26, 2012 Thank Coltfan1972... I am in rust because I have 1 default Judgment again me like my post subject: please-help-hennepin-minnesota...What is preferential payment? This money I borrow from my mom (over 70 yrs old now), and my friend (handicap guy) So the court will ask them what? Do it affect anything to them? Thank you! Link to comment Share on other sites More sharing options...
Denita Posted March 26, 2012 Report Share Posted March 26, 2012 Yes, it affects them if you file BK.The Trustee can, and probably will, require your Mom and your friend to pay the funds they received from you to the court. The look back period is one year for preferential payments (one year prior to the date of filing BK). Link to comment Share on other sites More sharing options...
hmta1982 Posted March 27, 2012 Author Report Share Posted March 27, 2012 (edited) Yes, it affects them if you file BK.The Trustee can, and probably will, require your Mom and your friend to pay the funds they received from you to the court. The look back period is one year for preferential payments (one year prior to the date of filing BK).Oh man ... This money I borrow a long time a go. Now I have money I return to them, so if the Trustee ask them to return what can I deal (to answer them) with my friend, my mom? What can I do ???? The trustee will ask them for sure? $200 from my mom, $500 from 2 of my friend??? Please help? Edited March 27, 2012 by hmta1982 Link to comment Share on other sites More sharing options...
hmta1982 Posted March 27, 2012 Author Report Share Posted March 27, 2012 I borrow them back money and will pay them later. But how long Ch.7 end can I w/draw money from my bank to re-paid my friend? Since the trustee will audit my account after BK? Any advise? Thank you. Link to comment Share on other sites More sharing options...
Coltfan1972 Posted March 27, 2012 Report Share Posted March 27, 2012 A BK atty will give you a free visit and can probably answer this stuff right off the top of their head. However, unless you commit fraud, you can win the lottery the day after your chapter 7 BK is final, and not have to pay the money back that you discharged in BK. There will be no audit unless they suspect fraud. Link to comment Share on other sites More sharing options...
Denita Posted March 27, 2012 Report Share Posted March 27, 2012 (edited) You don't want to 'borrow' the money back as it will create more issues with the BK.Are you in the middle of your BK now or are you planning to file in the future?If you have not filed yet, you will need to supply all your records (bank statements, etc) to your attorney. Make sure he knows you repaid family and friends an outstanding loan recently. These are known as payments to insiders.The trustee will want to "claw back" those repayments you made to family and friends and other "insider's". (They are known as insiders because they are family, friends, and/or business partners. That's why they go back a year on those type of repayments. As a note, an insider payment has a longer lookback period than the preferential payment period which is 90 days prior to filing.) For all of this information it is best to speak to your BK attorney.Generally a BK 7 lasts 4 months or so. There is nothing to prevent you from repaying the debt again to your friends and family after your discharge on a voluntary basis. Ask your BK attorney if the trustee will accept payment from you rather than claw back the payments from your friend and your mother. Your BK attorney will know how this particular trustee works.Coltfan, you are right. But it sounds like the OP wants to make sure that these two debts in particular are paid because it is his mother and very good friend. If I'm wrong OP, please say so. Coltfan is exactly right, you don't have to repay it, but there is nothing in the BK law that prevents you from volunteering the payment after discharge. However, they can't ask you to repay the debt. Edited March 27, 2012 by Denita Link to comment Share on other sites More sharing options...
Coltfan1972 Posted March 27, 2012 Report Share Posted March 27, 2012 You don't have to repay it, but there is nothing in the BK law that prevents you from volunteering the payment after discharge. However, they can't ask you to repay the debt.OP, I agree with this, I was just pointing out there will be no "audit" after the discharge. However, pay back whoever you wish. Link to comment Share on other sites More sharing options...
hmta1982 Posted March 28, 2012 Author Report Share Posted March 28, 2012 Thank you all for replied.I withdraw cash from my checking acct then I paid cash friends and mom. Now they all give me back and told me paid later. So, I still have a cash in hand.I am not give or supply to my attorney yet. I will told my attorney that: "I intend to pay them but I am not" My bank statement just see my withdraw but not make any big payment to anyone. Link to comment Share on other sites More sharing options...
WhoCares1000 Posted March 28, 2012 Report Share Posted March 28, 2012 How do you plan on paying your BK attorney? Link to comment Share on other sites More sharing options...
hmta1982 Posted March 28, 2012 Author Report Share Posted March 28, 2012 (edited) How do you plan on paying your BK attorney?Thank you for reply. I will put money back to checking account then sign a check to him? Is it OK or not could you let me know? Edited March 28, 2012 by hmta1982 Link to comment Share on other sites More sharing options...
Coltfan1972 Posted March 28, 2012 Report Share Posted March 28, 2012 While I'm not advocating fraud, you do need to strategically plan a BK filing. Obviously you will have some unhappy creditors. There are a lot of things you can do that are right to the line "legally" without crossing over the line, where you can maximize the benefit(s) of your BK filing. Link to comment Share on other sites More sharing options...
Denita Posted March 28, 2012 Report Share Posted March 28, 2012 Coltfan is right again. Planning your BK strategically is very important for your recovery.Find out what your allowed exemptions are in your state for Bk. You can start by searching the various bk forums around. This BK forum has good info, Moran Law has good info and there are others out there too. Check LegalConsumer.com :: Free Bankruptcy Forms, Information, Means Test Calculator, 50 State Exemptions, Federal Bankruptcy Law, Bankruptcy News for your states BK exemptions. You can pay your attorney with those funds you removed from checking. There may be other places for your funds. Check your allowed cash exemptions. Check any other exemption you are allowed too. Ask your attorney if you can put excess funds in your retirement account prior to filing. Planning your BK is critical to your recovery. Link to comment Share on other sites More sharing options...
hmta1982 Posted March 28, 2012 Author Report Share Posted March 28, 2012 (edited) Thank you all for reply. I think I fill out all work sheet then my attorney will do the work?My house value is 50% below the standard. And I on the loan almost 99% Next year my house will be under water more about 30%!!! Will someone will come inside my house to check all this out?Any any advise? After I pay money for the Attorney then I have 3/5 of cash I will check it out all the BK case. When I will pay for my Attorney? After talking with him then I go home 2 day ago til now I am not received form him! Edited March 28, 2012 by hmta1982 Link to comment Share on other sites More sharing options...
Coltfan1972 Posted March 28, 2012 Report Share Posted March 28, 2012 Your post is very hard to understand. They won't come to your house to check things out. Link to comment Share on other sites More sharing options...
hmta1982 Posted March 28, 2012 Author Report Share Posted March 28, 2012 Sorry for any confussion. I am a newbie so some of terms I am not understand.I mean after I fill out worksheet to my Attorney any my household like TV, furniture, ... and then there is some one will come to my house to check it out is it correct to the thing I list? I am honor to list all items I have in my house. Because all of inside my house is about 10 year old at least. A sheriff will come to check it out or somebody else will come to check it out?Until today my attorney not sent for me any info. yet? Does he do the right job?Thank you.... Link to comment Share on other sites More sharing options...
Coltfan1972 Posted March 28, 2012 Report Share Posted March 28, 2012 Nobody is going to come to your house. That might happen in .001% of the cases with some high profile filing. Also, the items in your house are going to be worthless in the eyes of the BK trustee. The BK trustee would have to pay for somebody to sell your items (liquidate them) and then other costs.That is not happening, unless you have a rare antique car or some high end electronics (I mean really high end). Your fine. They are not going to be knocking on your door. Just answer the question honestly and you'll be fine. I'd call the attorney and ask where you sheet to fill out is. This is a big deal to you, as it should be, but to your creditors, no big deal. It happens all the time. They won't even show up for your BK hearing. Your over thinking this. You really need a good face to face sit down talk with your attorney, so they can set your mind at ease. Link to comment Share on other sites More sharing options...
Denita Posted March 28, 2012 Report Share Posted March 28, 2012 Remember to value your items as a 'garage sale' type of price. If the items are a 10 yr old TV its not worth more than $10 as an example (if that). Please contact your attorney as suggested above and if you have not signed a retainer agreement, consider interviewing several BK attorney's to find one that will work with you and explain the process throughly. It is extremely rare for a Trustee to send someone to your home to do an inspection. It's possible but very, very remote as even if your items are sold, they just don't amount to much in the average household. Just list the items you have accordingly and don't assign more value to it than it is worth. Link to comment Share on other sites More sharing options...
hmta1982 Posted March 29, 2012 Author Report Share Posted March 29, 2012 Thank you for all replied!!!I have 2 LCD-TV(5-6 yr old), 3 laptops (4-6 yr old), 1 printer, 1 sofa, table & chair, kids toy, my bad have no frame, tool box and compresser to repair a car, 3 kids bicycle, 1 adult. That all I have. I paid my attorney already because I am in fig hastiness before 4/4.Thank you forum -- Thank you for all replied --- Thank you for all of your valueable time. Link to comment Share on other sites More sharing options...
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