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Insider payment?

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Indebteduser88
New Member

Insider payment?

I paid my dad back on a large loan he had lent me last year ($20k). I'm planning on filing chapter 7, if I make sure the file date is over a year after I paid him back, will he be safe from getting sued by the trustee? I don't even want him to know I'm filing.. so I want to make sure that nothing will come back on him. Has anyone dealt with this situation? Or have good advice? 

Message 1 of 13
12 REPLIES 12
FireMedic1
Community Leader
Mega Contributor

Re: Insider payment?

Welcome. This is one for an attorney for that amount to answer. If you gave the money to keep it out of the BK. Thats fraud. I'll leave it at that. Few hundred bucks no biggie. That amount? Get the legal aspects of the transaction from a law team.


Message 2 of 13
JoeRockhead
Senior Contributor

Re: Insider payment?


@FireMedic1 wrote:

Welcome. This is one for an attorney for that amount to answer. If you gave the money to keep it out of the BK. Thats fraud. I'll leave it at that. Few hundred bucks no biggie. That amount? Get the legal aspects of the transaction from a law team.


+1 This ^^^^

Best advice you could get is from a competent bankruptcy attorney.

Message 3 of 13
TRC_WA
Senior Contributor

Re: Insider payment?


@Indebteduser88 wrote:

so I want to make sure that nothing will come back on him. Has anyone dealt with this situation? Or have good advice? 


I once borrowed $10k from my parents to relocate cross country for a new job and nobody ever knew about it... nothing documented... no promise to pay signature... nothing.

 

I just sent them a check for $500 a month until it was paid off.

 

Point being... how would the trustee even know?

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Last app: 11-30-23
Message 4 of 13
FireMedic1
Community Leader
Mega Contributor

Re: Insider payment?


@TRC_WA wrote:

@Indebteduser88 wrote:

so I want to make sure that nothing will come back on him. Has anyone dealt with this situation? Or have good advice? 


I once borrowed $10k from my parents to relocate cross country for a new job and nobody ever knew about it... nothing documented... no promise to pay signature... nothing.

 

I just sent them a check for $500 a month until it was paid off.

 

Point being... how would the trustee even know?


@TRC_WA Not to carry on this thread. How long before you filed did this occur? OP was just last year probably under a year. Still its a BK law firm matter.


Message 5 of 13
TRC_WA
Senior Contributor

Re: Insider payment?

@FireMedic1 

 

It was in 2011 when I moved to WA... 6 years before I filed.

 

I'm not suggesting anyone try to hide anything from the trustee I'm just saying that unless it's a documented transaction how would they even know...  When I filed all they got from me was tax returns and paystubs.  They never saw any bank statements and the only thing they got related to that was the monthly expense report I filled out.

 

Anyway... water under the bridge.  Smiley LOL

 

 

 

 

FICO8 current as of : 1-24-24 EQ: 665 TU: 653 EX: 656
Hard INQs last 12 months: EQ: 5 | TU: 7 | EX: 9
WF Reflect $7000 Verizon Visa $6500 Ally MC $4000 Mission Lane Visa $1850 Credit One Platinum x5 $4700
Upgrade Visa $2000 PenFed Gold Visa $2500 Amex Delta Gold $10,000 Care Credit $12,000
Petal 1 Visa $2900 NFCU CashRewards $6000 Apple Card $2000 Best Buy $3500 Amazon $5000
NFCU auto loan (2022 Ford Bronco Sport Badlands - Cactus Gray) $44k new - refinanced $33k balance @ 6.94%
Total CL: $82,000 --- Total CC UTI: 44% --- AAoA: 5.5 years --- Income: $170k
Last app: 11-30-23
Message 6 of 13
Shooting-For-800
Senior Contributor

Re: Insider payment?

OP

Did you pay him back before your financial situation changed?

Personally, I would drag it out another 6 months to be sure.

I think the look back is like 6 months but $20k is a lot of money.

I think 18 months would be good.

How much are trying to discharge?

I would stop paying everything but rent/mortgage/car.

Open up a checking account with a bank you have no debt with.

Start saving cash.

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 7 of 13
Indebteduser88
New Member

Re: Insider payment?

I paid him back during the time where I was starting to stop paying my bills, I was still paying some loans and CCs but stopped paying a fee in the month or 2 before I paid him back. 
Do you think that will make a difference? 

Message 8 of 13
Lurker22
Frequent Contributor

Re: Insider payment?


@Shooting-For-800 wrote:

OP

Did you pay him back before your financial situation changed?

Personally, I would drag it out another 6 months to be sure.

I think the look back is like 6 months but $20k is a lot of money.

I think 18 months would be good.

How much are trying to discharge?

I would stop paying everything but rent/mortgage/car.

Open up a checking account with a bank you have no debt with.

Start saving cash.

GL!


I agree with everyone except the "open a new account"...if you bank with a CU - absolutely make that the first thing you do, CU's have a cross collateralization clause that allows them to offset any losses from your accounts, banks rarely do this (I know for a fact Chase and WF do not do this...if you google WF you'll see all kinds of stories about them doing it in the past, but that was years ago)....my Chase and WF account weren't touched during my 13 and I IIB'd Chase for $$,$$$ (guessing 30-40K) ... heck Chase didn't even file a claim with the court so they got paid $0 in my 13

Message 9 of 13
FireMedic1
Community Leader
Mega Contributor

Re: Insider payment?


@Lurker22 wrote:

@Shooting-For-800 wrote:

OP

Did you pay him back before your financial situation changed?

Personally, I would drag it out another 6 months to be sure.

I think the look back is like 6 months but $20k is a lot of money.

I think 18 months would be good.

How much are trying to discharge?

I would stop paying everything but rent/mortgage/car.

Open up a checking account with a bank you have no debt with.

Start saving cash.

GL!


I agree with everyone except the "open a new account"...if you bank with a CU - absolutely make that the first thing you do, CU's have a cross collateralization clause that allows them to offset any losses from your accounts, banks rarely do this (I know for a fact Chase and WF do not do this...if you google WF you'll see all kinds of stories about them doing it in the past, but that was years ago)....my Chase and WF account weren't touched during my 13 and I IIB'd Chase for $$,$$$ (guessing 30-40K) ... heck Chase didn't even file a claim with the court so they got paid $0 in my 13


@Lurker22 

Nowhere did it say anything about opening accounts nor what CU's do if you file. That was your case you exlained. No case matches. Lets keep it on topic which has been addressed. The OP needs legal advice that we can not give unless we hold a law degree. I'll ping my pal @despritfreya who is a BK Attorney and will get a more in depth explanation.


Message 10 of 13
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