Legal Question in Bankruptcy in California

I am filing for bankruptcy, and during the interview with my trustee I admited having paid my mother a loan she had given me in the amount of $3800 a year ago. They said that according to Bankruptcy Code 547 this payment was made within one year of the filing, to a relative, on account of an unsecured debt which predated the banktruptcy, which makes this an avoidable preferential transfer.
They sent my mother a letter requesting the money back. She already spent this money. Is she legally responsible for paying this money even if she didn't know?? What is my mother's obligation to this case? How will this affect my case???

Asked on 1/03/10, 9:36 pm

Brian D. Lerner Law Offices of Brian D. Lerner, A Professional Corporation

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Hello:

This is money that legally should be part of the bankruptcy estate. Therefore, it can be compelled and ordered to be given back.

Regards,

ebankruptcyatty.com

Answered on 1/08/10, 11:05 pm

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