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Ellen
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I thought that if it was a year or more that you made that

Resolved Question:

I thought that if it was a year or more that you made that payment it was ok.
Submitted: 8 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 8 years ago.
Hello,

If you paid the debt within one year, the trustee will likely avoid the payment. If you paid over one year ago,the payment would typically not be avoided.
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
I don't understand very well. Can you explain better.
Expert:  Ellen replied 8 years ago.
Hello,

If your mother lent you the money on 12-1 -06 and you paid the debt back on 12-1-09 and filed for bankruptcy on 6-1-09, the payment to your mother would be subject to the trustee's avoidance powers. In other words, the trustee is going to sue your mother to obtain the repayment made to her.

However, if your mother lent you the money on 12-1 -06 and your paid the debt back on 5-1-08 and filed for bankruptcy on 6-1-09, the payment to your mother would not be subject to the trustee's avoidance powers.

It can be confusing. If you still do not understand, post me back with the actual dates of loan and payment and perhaps I can be more clear.
Customer: replied 8 years ago.

So for example if I pay my mother 6/7/08 and file for bankrupcy 8/7/09, the trustee cannot get the money.

Expert:  Ellen replied 8 years ago.
Hello,

The transfer would not need to be disclosed on the petition and would not be subject to avoidance as a preferential transfer in most cases.
Ellen and other Bankruptcy Law Specialists are ready to help you
Customer: replied 8 years ago.
Sorry, but what does subject to avoidance means.