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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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I am completing my statement of financial affairs. I am curious

This answer was rated:

I am completing my statement of financial affairs. I am curious what level of detail I need for completing all of my personal property. Do I need to include all property regardless of the value (forks, knives, plates, etc.?

Also, is it possible the creditors will look to see everything purchased over the last 1-2 years on their credit card and then see if you included it on your personal property inventory? Could they then go to the trustee and file a complaint to not discharge the debt. Thank.

Terry

cfortunato :

Hi Terry,

cfortunato :

The Statement of Financial Affairs does not ask for a listing of personal property. Are you asking about Schedule B (Personal Property)?

Customer:

Sorry . Yes, schedule B (Personal Property)

cfortunato :

Thank you for your response.

cfortunato :

You are supposed to list everything of value that you own.

cfortunato :

However, there is generally no need for specificity.

cfortunato :

A general rule of thumb is to list separately items that can sell for at least $100.

cfortunato :

All other items can be grouped together.

cfortunato :

For instance: living room furniture - $150.

Customer:

Got it. Thanks. I will send you a tip.

cfortunato :

bedroom furniture - $100.

cfortunato :

You're welcome. Creditors are not allowed to look back more than 90 days.

Customer:

I got some conflicting feedback today. I had one attny. tell me paying off a 401k loan could be considered a preferential payment. The pension exemption wouldn't likely extend to a loan from a retirement account.

Customer:

do you agree?

cfortunato :

And they are only allowed to look for purchased of luxury items of more than $600 total.

Customer:

It seems if I sell personal property to pay off a 401k loan to myself, it would not be considered a preferential payment.

Customer:

Good to know on the 90 day look back.

Customer:

Oh and the payment to my 401k would also be exempted. Correct?

cfortunato :

I do not agree that paying back a 401K loan would be viewed as a preferential payment. This is because you have to pay back a 401K loan to avoid penalties.

Customer:

That's correct. That's what I wanted to hear. Thanks for all of your attention. Nice work!

cfortunato :

You're welcome!

Customer:

Have a nice weekend!

cfortunato and other Bankruptcy Law Specialists are ready to help you

You also have a nice weekend!

Thank you for the positive feedback.

One last thing regarding the re-payment of a 401K ''loan'' - the other reason this would not be considered a preferential payment is there is no creditor involved. When you ''borrow'' money from a 401K account, you are ''borrowing'' money from yourself, not from the bank (or other financial institution where your 401K is located).

Preferential payments can only be made to creditors.

Customer: replied 3 years ago.


Thank your sir.