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.
If you are attempting to navigate the complicated and perilous bankruptcy law without capable legal assistance, this is your wake-up call. The cost of the legal services you need is small in comparison to the cost of the damages you can irrevocably cause yourself. If you do not know a competent bankruptcy practitioner, use the attorney-finder at www.nacba.org.
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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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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!