Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
The Statement of Financial Affairs does not ask for a listing of personal property. Are you asking about Schedule B (Personal Property)?
Sorry . Yes, schedule B (Personal Property)
Thank you for your response.
You are supposed to list everything of value that you own.
However, there is generally no need for specificity.
A general rule of thumb is to list separately items that can sell for at least $100.
All other items can be grouped together.
For instance: living room furniture - $150.
Got it. Thanks. I will send you a tip.
bedroom furniture - $100.
You're welcome. Creditors are not allowed to look back more than 90 days.
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.
do you agree?
And they are only allowed to look for purchased of luxury items of more than $600 total.
It seems if I sell personal property to pay off a 401k loan to myself, it would not be considered a preferential payment.
Good to know on the 90 day look back.
Oh and the payment to my 401k would also be exempted. Correct?
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.
That's correct. That's what I wanted to hear. Thanks for all of your attention. Nice work!
Have a nice weekend!
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.
Thank your sir.