Starting new business

[freakedout]

After discharge of a chapter 7, can my mom gift me money to start a new business? I am talking a gift of about $40,000 - $50,000? Will there be a problem if I have equity in a business - again after discharge. Is there a waiting period?

[Gracious]

$13,000 tax exempt

Keep in mind that your Mom can gift you up to $13,000 each year, and your Dad can gift you $13,000 each year without any taxes owed but beyond that go visit or call your CPA or Tax advisor as your parents or you may be liable for taxes. Try to do it over 2 years to avoid tax implications. Good luck

341 hearing 03-03-2010
04-04-2010 last day for objections
May 04, 2010 Discharge coming

[killinstinct]

If AT ALL possible....wait at least a year. A trustee can re-open your case up to a year after the fact if they believe some sort of fraud is involved. Your discharge has been revoked. Now you've both filed for BK (trashing your credit) and you have no protection. Play it safe, and legal. Please.

Think about it this way, you're a creditor and someone who just stiffed you suddenly came into 50K. I'm willing to bet you're not in a happy place.

[southernbelle]

Both Gracious and killinstinct have REALLY great advice. I agree with the fact that the TT can reopen your case up to a year after the fact so be careful and keep everything legal.

[researchmode]

Would it be possible (I'm just thinking out loud here--I really don't know whether this would work or not) for them to be partners in the business? They'd give the business the money and not you directly?

What about having them purchase the equipment you need and paying for things directly rather than giving you the money?

It might not be a bad idea to check with a lawyer and pay the half-hour or however long it would take to discuss it and make sure you're in the clear. You may not have to wait a year... how much money would you make in a year? Would paying that $125 (or whatever the fee would be) be worth it to make that?

[bigtim6656]

What if you scratched all the cash out of your own sweat and tears to start the business. I am a construction student and plan to start a construction business post discharge. There is a tax sale about a month after what I would expect my discharge to be. I can buy houses for 250 to 500 dollars and end up makes alot of money. If I wait a year I lose the chance.

[deborah56]

how about a non profit business after bankruptcy???