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Here's the scenario, about a year ago I loan $60k to my dad, who was going to invest the money to buy gold overseas. He wanted more money to invest, so in a matter of 6 months or so I lend him another $40k (Cash deposits).
He has not touch the money and is still in his savings account. He was affair of losing the money, so he didn't invest it. Here's the kicker, he wanted to move out from his apartment and into another place, so I helped him run his credit and HOLY S**%, it looks like he will have to BK.
His profile:
Age: 59
Yearly Income: 32k
Credit Card Debt: $65k (Min. Mo. Payment $1500)
Total monthly expense: $2600
Total net monthly income: $2000
He's been living like this for years, using one card to pay another or doing side jobs to get by.
The first $60k I do have a contract signed and notarized with him dated a year ago, but the $40k I do not. He will give me back the money, so I'm not worried about that however, if he files for BK, is the judge going to question the $100K transfer?
What should i do? Should I be worried?
I will consult with a BK attorney, but thought I would ask this forum first.
Definitely talk to an attorney. If he has the $100K, why doesn't he pay off his bills if they are $65K?
There is a "look back" period for most transfers. In other words, he can't give you the money back and then file bankruptcy-if the court finds it, they can still go after the money. And if it is in a savings account, they will most likely find it. If you have a signed contract, you will be in line with all the other unsecured creditors. With $100K in assets and only $65K in bills, he may not even qualify to file bankruptcy.
You are very likely to lose the $100k no matter what your legal rights. In any case the first $60k us an unsecured loan and the last $40 does not exist.
Here's the scenario, about a year ago I loan $60k to my dad, who was going to invest the money to buy gold overseas. He wanted more money to invest, so in a matter of 6 months or so I lend him another $40k (Cash deposits).
He has not touch the money and is still in his savings account. He was affair of losing the money, so he didn't invest it. Here's the kicker, he wanted to move out from his apartment and into another place, so I helped him run his credit and HOLY S**%, it looks like he will have to BK.
His profile:
Age: 59
Yearly Income: 32k
Credit Card Debt: $65k (Min. Mo. Payment $1500)
Total monthly expense: $2600
Total net monthly income: $2000
He's been living like this for years, using one card to pay another or doing side jobs to get by.
The first $60k I do have a contract signed and notarized with him dated a year ago, but the $40k I do not. He will give me back the money, so I'm not worried about that however, if he files for BK, is the judge going to question the $100K transfer?
What should i do? Should I be worried?
I will consult with a BK attorney, but thought I would ask this forum first.
Thanks.
Why would you waste your time asking on a public forum FIRST for such a serious legal issue. You should have already been to an attorney and gotten your money back OR just let Dad have the money and pay off all of his debt.
Definitely talk to an attorney. If he has the $100K, why doesn't he pay off his bills if they are $65K?
There is a "look back" period for most transfers. In other words, he can't give you the money back and then file bankruptcy-if the court finds it, they can still go after the money. And if it is in a savings account, they will most likely find it. If you have a signed contract, you will be in line with all the other unsecured creditors. With $100K in assets and only $65K in bills, he may not even qualify to file bankruptcy.
The first $60K was a loan.... Which made you a creditor that is owed $60K. The credit card companies are also creditors that are owed $65K.
If your dad pays you back the $60K before paying back the credit card companies, this shows preference. And you could be ordered to return the money you are paid back so all creditors get an equal piece of that $60K.
On the topic of the $40K "gift" that you gave to your dad... Did you pay your gift taxes on that money?
Without documentation, that money is your dad's now.... and if he transfers that money back to you, that could be looked upon as your dad giving you a gift of $40K... And in the light of his bankruptcy, this may be classified as a Fraudulent Transfer.
I suggest you talk to a BK attorney ASAP before you withdraw that money from your dad's account.
You have a huge paper trail (bank records) which is going to cause both you and your father a lot of grief!
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