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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I am a free lance photographer, one of my clients filed for

Customer Question

I am a free lance photographer, one of my clients filed for chapter 7 last friday. they paid me what they owed me on may 15th, 2009. Can the judge ask for a return of this money? I have heard there is a time frame.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
The trustee will not like that your client paid "some" of his creditors, and if he paid more than $600, that's considered preferential payments and the trustee can make you give that money back to the trustee. 90 days is usually the timetable.
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Customer: replied 7 years ago.
That is pretty much what I expected, is it a forgone conclusion? That is, do they always ask for the money paid out in the last 90 days back? This was money owed to me from jobs done in 2008. I finally got them to pay me by sending them a cease & desist letter as they were using my photos on their website with out paying for their use. they paid me 5k in april and another 5k in May then filed chapter 7 last friday. They were/are owned by FAO Schwartz, which is still in business.
thank you,
Expert:  WALLSTREETESQ replied 7 years ago.
If it is that little of an amount, the trustee may not even bother, also a services deal is more favorably looked upon than a creditor receiving money, since you actually provided a service to them that they used.