Bankruptcy

Can I Keep Money in my Bank Account So I Can Pay the Trustee for the Preference so he doesn't Sue Mom?

By Joseph McDaniel, Esq.

It makes sense that you'd want to do so, but you'll just lose that money to the trustee, because it's a non-exempt chunk of dough in a bank account on the instant of the Chapter 7 bankruptcy filing.

So the trustee has an absolute right to have and grab and take it, for the benefit of creditors in your case.

And then the trustee would STILL say, politely, would you rather pay me the amount of the preference which was paid to mom, or would you rather I sue her?

And usually, here in Arizona, they'll permit a stream of payments, rather than a onesie.

And perhaps, after the date for objecting has come and gone, you'll sell an exempt asset to get money to pay the trustee so he doesn't sue mom. Because that would make Thanksgiving Dinner a little...strained.

NOTHING HERE CONSTITUTES LEGAL ADVICE RE A CHAPTER 7, CHAPTER 13, CHAPTER 11, OR CHAPTER 12. FIND AN ARIZONA BANKRUPTCY LAWYER WHO IS BOARD CERTIFIED IN BANKRUPTCY LAW, AV RATED, AVVO 10 RATED, ON SUPERLAWYERS, OR JUST VERY EXPERIENCED AND A FORMER CHAIR OF SOME BANKRUPTCY SECTION OR COMMITTEE. NOTHING HERE MAY BE USED AS LEGAL ADVICE IN CONNECTION WITH ANY BANKRUPTCY, WHETHER THAT BANKRUPTCY IS IN PHOENIX, GLENDALE, TEMPE, MESA, SCOTTSDALE, OR ANYWHERE ELSE.

Full post as published by Arizona Bankruptcy Attorney Blog on February 25, 2010 (boomark / email).