barbaraj0301

Question about Cash Gift

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Hello!

I'm drowning in credit card/personal loan debt (~$65,000) and don't know how much longer I can keep my household going.  I've been doing a lot of research about bankruptcy, and right now I qualify for Chapter 7 in my state (RI).

Here's my problem - I gave my daughter $10,000 in July for her wedding.  It was money from my Dad's life insurance that I set aside in a CD when she got engaged two years ago.  In the grand scheme of things, it wouldn't have made much of a dent in my debt even if I hadn't given it to her.

I've read that the claw-back period is from one to two years.  What is the likelihood that a trustee would go after my daughter for her wedding gift (which she has already spent)?  

Any info or suggestions you can give me would to much appreciated!

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You need to consult with a bankruptcy attorney on something like this. They don't charge for initial consultation, so I would talk with 3 or 4 to get a consensus. 

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15 minutes ago, Harry Seaward said:

You need to consult with a bankruptcy attorney on something like this. They don't charge for initial consultation, so I would talk with 3 or 4 to get a consensus. 

Thank you - I'll start sending out some emails this weekend!

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29 minutes ago, barbaraj0301 said:

Thank you - I'll start sending out some emails this weekend!

DO NOT email.  Call.  Those "Contact Us" email boxes may not be monitored or only checked monthly if ever.

 

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2 hours ago, Clydesmom said:

DO NOT email.  Call.  Those "Contact Us" email boxes may not be monitored or only checked monthly if ever.

 

LOL, that figures. I absolutely HATE talking on the phone...guess I'll have to suck it up and make some calls on Monday. 

Thank you for the advice!

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You must disclose the transfer if it occurred within the 2 years prior to filing.  The Trustee will have the right to recover the funds from your daughter.  The Trustee, before he contacts your daughter, will most likely give you the opportunity to protect her by entering into a settlement to pay the bk estate the amount (or a portion thereof) of the transfer.

As to the comment about emailing a potential attorney as a point of first contact . . .   I agree - just don't.  Get on the phone, set an appointment and meet with the attny.  I don't understand the reluctance to TALK.  Relying on electronic communication for a first contact IMO is not smart and shows a lack of personal interest in the problems one is facing.

Des.

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On 10/20/2018 at 8:44 AM, despritfreya said:

You must disclose the transfer if it occurred within the 2 years prior to filing.  The Trustee will have the right to recover the funds from your daughter.  The Trustee, before he contacts your daughter, will most likely give you the opportunity to protect her by entering into a settlement to pay the bk estate the amount (or a portion thereof) of the transfer.

As to the comment about emailing a potential attorney as a point of first contact . . .   I agree - just don't.  Get on the phone, set an appointment and meet with the attny.  I don't understand the reluctance to TALK.  Relying on electronic communication for a first contact IMO is not smart and shows a lack of personal interest in the problems one is facing.

Des.

Thank you for the info! That makes me feel a little more hopeful about getting some relief sooner rather than later.

I did call an attorney's office and have an appointment on Wednesday.  I have another three possibilities if it doesn't pan out. 

As far as not wanting to talk on the phone, I've been like that since I was a kid; which is ironic, because my Dad worked for the phone company.  Social awkwardness plus hearing loss plus the fact that my office mate sits four feet away from me (so having a private conversation is next to impossible during normal business hours) make texting/emailing just more efficient for me.  I do see your point, though, and appreciate the advice.

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4 minutes ago, barbaraj0301 said:

I have another three possibilities if it doesn't pan out. 

You should consult with at least 3 and pick the one that you feel will represent you best.

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Thank you all for your excellent advice.  I met with three attorneys last week.  One of them said I shouldn't even bother trying to file for at least a year; the other two said that an offer of a lump sum to the trustee for a portion of the gift would most likely be accepted.  My daughter and her new husband are both full-time students who have no assets and are living on financial aid, so settling with me for a percentage (they both suggested around 75%) would be much less time-consuming for everyone involved.

I liked both of the latter two, but one of them just seemed to be a better "fit," so I'm going to call his office tomorrow and tell him that I'd like to move forward.

I'm simultaneously nervous and relieved.  It'll be great to have a fresh start, since I'm 57 years old and need to start seriously planning for retirement.

Again, your input was very much appreciated!

BJ

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