the trustee can and will sue a family member if they were paid back. Is there anyway around this. I paid a family member ($20,000) back using a pension loan about 6 months ago which I will continue to pay even through the bankruptcy if approved? If it's a loan that can't be touched in bankruptcy, how can they sue a person for it?
Any insight would be helpful.
A family member is going to be considered an insider, but if the payback was six months (actually the cutoff is typically three months) before the filing, they are generally safe.