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I have received the following information from this person's attorney: How can we be made to pay money back that is owed to us? Do we have any other options?
I apologize for any confusion but I never indicated that the funds received from you by Ms. Palmer were a gift. You have been notified as one of her creditors due to the requirement that all of an individual debtor's creditors receive notice when any debt is owed. As one such creditor, you were repaid a portion of the amount Ms. Palmer owed you within the 12 month period prior to the date she filed Chapter 13 Bankruptcy, which she had to disclose. In addition, due to your relationship with Ms. Palmer, the repayment of those funds within that time frame is considered preferential and is prohibited. Therefore, the Chapter 13 Trustee has the power to avoid it by filing a lawsuit against you and seeking a court order requiring you to turn over all funds during that 12 month period. However, the Trustee has agreed to forego a lawsuit if you and Mrs. Harp sign the Agreed Order I sent to your sister yesterday (reattached today).
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