Q: In Ch 7 Bankruptcy, can I create promissory notes now if I never made them then for small loans from parents, friends?
I have past verbal arrangements Ive been paying on to each of my parents, a friend, and foreign friends who live overseas. I never executed promissory notes in that time. I've paid more than $200 aggregate within last 12 months on each person. Should I make the promissory note now mentioning the verbal arrangement was agreed to in the past? Or should I just list each person as recipients of gifts that aggregate more than $200 to each of these individuals?
What would be more expensive in the long run as I plan to pay whatever the courts try to sue them or demand from them after filing?
A:
If you owe them money, they would be listed as insiders to whom you made payments. Depending on how much was paid and when, the trustee may go after. If possible, have them return the money to you.
You can then exempt it and pay them back later. Discuss additional strategies with your attorney. I wish you much success
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