More details to this question:
My nephew borrowed money from me in May 2018, wrote a rubber check and I had to threaten legal action in order to be paid in full in Sep 2018. He is now declaring bankruptcy in June 2019, and I understand that I may now be subject to a clawback if his creditors (mostly credit cards) pursue me for the < $5K. There are no others he has paid back so it would just be little old aunty that they would pursue as an insider. Am I screwed?
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Bankruptcy Attorney serving Burbank, CA
Partner at
Law Office of Mark J. Markus
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If he in fact paid you back within 12 months prior to filing his bankruptcy case (your facts don't state whether or not he did), then the Trustee can sue you to recover that money. However, if it is less than $5,000, there is a possibility that the Trustee will not pursue that if that is the only asset of the estate. It really depends on the Trustee and where the case is filed (different districts are more aggressive with that sort of thing).
Answered on Jun 23rd, 2019 at 6:15 PM