Parent gift for emergency expenses; 100% claims to be paid in plan

[Fedor]

Due to emergency situations (multiple), I have been offered a gift of around $5k from my parents. We are in a plan where we pay 100% of our creditors that claimed (not all creditors filed claims). We're about 9 months in, and unless payments are adjusted, we'll probably finish in around 36-40 months total.

Does this need to be claimed? Is there an advantage to a personal check (going into the bank) or a certified check (which could be a smaller deposit, and keep the other cash for necessary times, which are coming up due to house issues)?

Appreciate any quick input (and of course, the generosity of my parents). Thank you.

-- Fedor

[momofthree]

To avoid the issue altogether, I'd just have the parents pay for the emergency expenses directly. That way the emergency is taken care of and the money never touches your hands.

[becky20]

You don't have to report it on your taxes right? If not, no way for the trustee to even know - you're in a 100% payback, not like you're cheating creditors out of money - to be honest, I don't see any reasons why you would have to report it. Having the parents just pay for the emergency themselves would simplify the issue of you're truly concerned that it could get you in trouble.