Hi, I’m St. Louis bankruptcy attorney Frank
Ledbetter. I’ve been a St. Louis bankruptcy lawyer since 2003.
Sometimes people who are struggling financially repay a family member, a friend, or a business
associate they owe money to, which may create a problem if the client files bankruptcy for
a while after that repayment. The Bankruptcy Code was written by Congress
with an intent to prevent people who file bankruptcy from repaying people they have
a close relationship with such as a relative, friend, or business associate at the expense
of other creditors being paid. If such insider repayment is made within one
year prior to the filing of the bankruptcy, then the bankruptcy trustee has the legal
authority and actually a duty to the creditors to recover from the friend, relative, or business
associate who has received the debt repayment within the twelve months before the filing
of the client’s bankruptcy. In a Chapter 13 bankruptcy case, the client
must either repay over the life of the Chapter 13 Plan to unsecured creditors the amount
equal to what was repaid to the family member, friend or business associate or subject the
relative, friend or business associate to being forced to pay to the Trustee the sum
paid by the client within the 1 year prior to case filing. In a Chapter 7 bankruptcy case, the friend,
family member or business associate repaid by the client within the 1 year before filing,
may need to immediately turn over to the Chapter 7 Trustee the amount of money paid by the
client with the year prior to bankruptcy filing or subject the “insider creditor” to being
sued by The Trustee to recover those funds. Let’s say a client who wants to file bankruptcy
repays a friend, relative, or business partner $10,000.00 owed to that person on May 1, 2012,
the client would then have to wait until May 1, 2013 to file a Chapter 7 bankruptcy in
which the insider creditor would not have to turn over the $10,000 for distribution
to creditors. If you are struggling financially, before
you repay a friend, relative or business associate back money you owe them… you may want to
consider filing for bankruptcy relief and schedule a consultation with a bankruptcy
attorney. If you live in Missouri… like Jefferson
County, Franklin County, St. Charles County, or anywhere near St. Louis and are considering
filing for Chapter 7 or Chapter 13 bankruptcy, I want you to have my FREE SPECIAL REPORT
at no charge. It reveals tips and strategies good people who’ve suffered through tough
times can use to turn things around. Just visit StLouisBankruptcyAttorneyHelp.com to
get your own copy sent to you right away. As an additional bonus, I would be glad to
meet with you for a no cost, no commitment consultation to help you explore your options
so that you may determine which debt relief option is best for you.