Preferred Payment
Posted: Mon Dec 28, 2015 12:11 pm
Reply-To: Kristal Bradford
X-Original-Return-Path: Kristal Bradford
To: cdcbaa@yahoogroups.com
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Hello Listmates,
My debtors sold their truck for $14,000 in January 2015 and they gave the proceeds to their daughters. The proceeds were listed on the bankruptcy Petition under Schedule B and the Statement of Financial Affairs and exempted completely in Schedule C. They had their 341a hearing today and the Trustee said it was a payment to an insider and under preferred payment rules, they have to retrieve the $14,000 back from their daughters so the money can be split between all the creditors. Furthermore, the Trustee wanted proof that the funds had been returned to the debtors before the continued 341a hearing.
Any suggestions on how to proceed? The debtors don't have the money and their daughters spent the money months ago. Since the funds were exempted on Schedule C, I thought that this wouldn't be a problem.
Respectfully,
Kristal D. Bradford, Esq. BRADFORD LAW GROUP, APC 5150 Candlewood Street, Suite 22BLakewood, California 90712Office: (562) 281-7789Fax:ic e-mail and any accompanying attachment(s) is intended only for the use of the intended recipient and may be confidential and/or privileged. If any reader of this communication is not the intended recipient, unauthorized use, disclosure or copying is strictly prohibited, and may be unlawful. If you have received this communication in error, please immediately notify the sender by return e-mail, and delete the original message and all copies from your system. Thank you.
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