I borrowed $1500 for a security deposit for an apartment. I paid it back with the security I got from 1st apartment. Will the trustee avoid it?

The short answer to your question is yes, the Trustee can go after your brother-in-law for the money you paid him. If you were repaying him on a debt you owed him before your case was filed, it can be recovered on a theory of preferential transfer under 11 U.S.C. 547. If it wasn't a repayment of a loan, but an outright transfer of money to him, it can be avoided under other sections of the Bankruptcy Code on a fraudulent transfer theory, and that may also have implications for your discharge. On the other hand, whether a Trustee will actually go after the $1,500 really depends on the Trustee and policies in your jurisdiction (as well as, of course, which chapter you file.  This is really a non-issue in a Chapter 13 or Chapter 11 case).   $1,500 is a relatively small amount and in many locales, the Trustee would just ignore the transfer.  But you should check with a bankruptcy attorney in your area for specifics on how this might affect your brother-in-law, as well as yourself. Mark J. Markus, Attorney at Law Handling exclusively bankruptcy law cases in California since 1991. http://www.bklaw.com/ bankruptcy blog: http://bklaw.com/bankruptcy-blog/ Follow Me on Twitter:  @bklawr