Neighbor is declaring bankruptcy and says I may have to give money she repaid me back to the court?

[JSS2]

San Diego CA

My neigbor borrowed 1500 dollars from me and has paid it back as of last weekend.
Now she is declaring bankruptcy and says I may have to give that money back to the court?
Is that right? it was my money to start, she just paid back exactly what I gave her?
I need those funds!

[AFFA]

I wish to inform you that money repaid to you is taken into consideration by bankruptcy trustee. In this if you are regarded as an insider then payment may be reversed. In this assets and liabilities as on the date of filing is considered and all payment made to insiders before filing bankruptcy. Insider include relative and friends. However, you may argue that payment was business debt repayment and below $6,825 and thus exempted.

AFF

[adjusterjack]

Now she is declaring bankruptcy and says I may have to give that money back to the court?
Is that right?

It's possible. Make sure that you don't give her the money just because she asks for it. It should take a court order with your name on it.

I need those funds!

Then you had no damned business lending it out to anybody. She could just as easily filed bankruptcy before paying it back and then it could have been gone forever.

Never lend anything to anybody that you can't afford to lose.

[Guest]

If she truly declares BK then you will be in line with all her creditors and any recent payments indeed may be require to be returned to the court.
I faced the same situation yrs ago. Unfortunately.

[Guest]

If you didn't get notice of a bankruptcy from the court, then your debt is/was not included in the bankruptcy comma and she would still owe it to you