The pension loan needs to be repaid, NOT the loan to the insider.
OP borrowed money from a pension plan and then elected to use that money to pay a family member ergo there is a preference if the bk is filed within 1 year of the payment to the insider. The insider will be attacked by a Trustee. OP could step up to the plate and work a settlement with the Trustee to protect the insider but it is a recoverable preference one way or the other.
Des.

