Chapter 7 Voluntary Petition
I have no idea why an exemption might apply to a payment to an insider. Exemptions apply to property you own & don't apply to things you no longer own. Hope this perspective helps!
Social Security Lawyers
Your question reveals a dangerous ignorance about bankruptcy law. Depending on how much and when was paid to your niece, it may well be a recoverable preference. Ms. Bunce is correct that it almost certainly is not any kind of an exemption.
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Best wishes for a favorable outcome, and please remember to designate a best answer.
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Family Law Attorney
PLEASE consult with a bankruptcy attorney! If you paid "too much" money to your niece, the BK trustee can demand that she pay it to HIM, so he can give it to your creditors. Good luck.
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Chapter 7 Bankruptcy Attorney
You cannot claim an exemption in this case, as you no longer possess the cash and the transaction was completed. The trustee will demand $ from your niece, or worse, sue her (if it is worth the time and money). Preference payments to insiders are scrutinized 1 yr back. When did you repay her? was this repayment of a loan or support payments? support payments in the ordinary course would not be subject to this. You definitely need an attorney!