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If the $100K is still in his savings account, how can he file for bankruptcy with debts of less than $100K?
When you loaned him the second $40K, did you know the original $60K was still in his bank?
Sounds to me like what he needs to do is use the 60 you loaned him to pay off his CC, and then, you and dad jointly invest the other 40 and see if you can make it work for you. If he just pays it back, you'll just lose your 60 outright. At least, he will have income to make monthly payments to you, instead of into the black hole of CC interest. He can pay you back the 60 in five years, for only half the amount he is paying on CC minimum payments.
You understand that if your father has $ 100,000 in the bank , that when he goes to the BK hearing , the trustee will know all about his banking affairs and ask him what happened to the money ?
This action alone could get his case dismissed and all his creditors will come after him .
Borrowing , transfering , gifts of cash, are all heavily scrutinized.
If your father has more than $ 100 dollars ( not thousands ) on the day he files BK ,in his account he will turn it all over to the trustee . He will turn over his tax refund check too ( if any ) Some states may allow more in the bank.
Your father is expected to pay his debtors if he has $ 100,000 in the bank.
Bankruptcy is for the truly broke and destitute. The debtor has no means to pay his creditors. Or has too much debt in relation to his/her income , what they bring in to pay the debt.
Your dad appears to be able to....
Now there is the problem of who's money is who's.
Your dad needs to consult a BK attorney before he spends ,loans or gives back any of the money
You understand that if your father has $ 100,000 in the bank , that when he goes to the BK hearing , the trustee will know all about his banking affairs and ask him what happened to the money ?
This action alone could get his case dismissed and all his creditors will come after him .
Borrowing , transfering , gifts of cash, are all heavily scrutinized.
If your father has more than $ 100 dollars ( not thousands ) on the day he files BK ,in his account he will turn it all over to the trustee . He will turn over his tax refund check too ( if any ) Some states may allow more in the bank.
Your father is expected to pay his debtors if he has $ 100,000 in the bank.
Bankruptcy is for the truly broke and destitute. The debtor has no means to pay his creditors. Or has too much debt in relation to his/her income , what they bring in to pay the debt.
Your dad appears to be able to....
Now there is the problem of who's money is who's.
Your dad needs to consult a BK attorney before he spends ,loans or gives back any of the money
How far will the trustee go back, I heard up to 6 months. So, if my dad gives me the money and then waits a year, things should go well.
I will talk to a BK attorney before i do anything.
How far will the trustee go back, I heard up to 6 months. So, if my dad gives me the money and then waits a year, things should go well.
I will talk to a BK attorney before i do anything.
* Normally * the trustee goes back 6 months but can go as far back as 1-2 years . If the trustee saw some unusual activity in that 6 months span that may prompt him to go even further back.
I do not believe your father will make it past a BK attorney because after your father goes for the financial hearing ( inside attorney's office where all debt is gone over , all bank statements are given ) the next thing that happens is the Mandatory Counseling approved by the BK court that your father does over the phone and then later the internet ( it's 2 tests ) . During that time your father is asked ALOT of questions to determine if he can pay his debt .
When the MC asks how much money does your father have - banks , savings , safety deposit box , IRA's , stocks, bonds, inheritance , and that property such as boat , land or water toys , second or third vehicle , second property , third , ect. The MC job is to determine if your father could SELL any of the aforementioned so he can PAY his debt off.
Most people that file BK have next to nothing. They can keep one vehicle and the house they live in ( with affirmation ) but any luxery items such as expensive jewelry , paintings , these can come under analysis if they could possibly be sold . They usually have very little money in the bank. Their debt far exceeds what they bring in.
I can already guess unless you get a unscrupulious attorney that the attorney is going to tell your father to use that money to pay that debt.
be sure to actually be side by side with your dad for any actions, consultations, etc. It appears neither of you truly understands what is going on. Too bad you did not take the time to check out his finances before you GAVE him all that money. We cannot assume that just because thery are our parents, that they are handling things correctly. Did you even ask for receipts of his investments or did you just assume he was doing what he said he was doing?
Why didn't you agree to invest the money yourself instead of giving it to your Dad?
How far will the trustee go back, I heard up to 6 months. So, if my dad gives me the money and then waits a year, things should go well.
I will talk to a BK attorney before i do anything.
I read an article the other day , I wished I had saved it. The article stated up to 10 years that the trustee can go back if he suspects suspicious activity or transfers.
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