family member giving money

[miss puff]

Couldn't the mom just pay the payment out of her own funds? Then it's not traced back to your pockets anyways.

[BassBoy]

Couldn't the mom just pay the payment out of her own funds? Then it's not traced back to your pockets anyways.

That's the MILLION DOLLAR QUESTION.

[SinkingFast]

Couldn't the mom just pay the payment out of her own funds? Then it's not traced back to your pockets anyways.

We were in a similar situation with selling our house out from under Foreclosure.

When the pay-off came in, we were over $2K short. $2K+ in funds we'd have to take to the table to sell the house. All the penalties and lates and legal fees had added in excess of $8K to our pay-off. Family members "volunteered" to pay the difference just so we could sell the house.

We called our attny to get his advice on how to approach this whole deal. Our attny said to have the family pay the Title Company direct. Not to have that money pass thru our hands or our bank acct. AND to get a Gift Letter so there was no question this was indeed a GIFT and not a LOAN.

We weren't comfortable with the whole deal so we opted not to do it. It just wasn't right to pay that much money to sell the house when we could easily discharge the debt in BK.

We went back to the Realtors and said "NO DEAL". The Realtors worked it out. They took commissions cuts and the Buyers came up in price to pull the deal together.

If family or friends or whoever pays to bring the mortgage current, have them pay the Lender direct themselves. And, get a Gift letter stating the money was just that. A Gift. There is no intent or expectation of the money being paid back.

[razorguns]

Razor, I don't think some trustees will care about $50 either. The point is if you lie about something so small then the trustee will investigate you thoroughly and this will complicate your case. Many of us want this over sooner rather then later. Even if they find nothing no one wants to be investigated and have their case open for 6 months or more over a $50 lie.

No one said lie. but there are ways to maneuver things so they're still legal. Kinda like how you play with your taxes to get the biggest tax refund possible. Same thing. Same govt.

as example, Before bk, my gf bought all my expensive meals.
r

[Interlaw]

all incorrect.

The trustee has no legal right to investigate the brother. Privacy rights. We're protected freedoms from the Govt snooping on us w/o our knowledge.

I can't picture any trustee arguing over $50. That seems silly and any lawyer could fight that.

An angry brother calling a trustee is a very very slim reality. Now if u said ex-gf/wife, maybe.

I'm not talking a huge amount of cash like $50,000 to pay for your mortgage.

One guy i know got bk - yet has 2 houses in Canada, and lotsa money in can. bank accounts. Trustee's have no legal jurisdiction to subpoening international asset information. Legal loophole.

You only get grilled if something is suspicius in your paperwork. Which is why you need to get a lawyer to ensure everything looks hunky dorky. If not - THAT'S where they get you.

Scaring people about bk is counter-productive.

r

Boy, where to start.

The Trustee *does* have authority to subpoena your brother. He can request records, call him in for a deposition, place him under oath, and ask questions.

The issue isn't the dollar amount at issue, but whether the Trustee thinks you are lying or hiding something. If you'll lie about $50, you're probably lying about much bigger things. Most Trustees would assume that they'll find something more productive if they just dig. And others may just get PO'd that you're doing this, and make you jump through lots of hoops just to show they can.

Trustees can investigate, and sell, foreign assets. I've had it happen to clients of mine (and they knew it was likely before they filed).

As far as scaring people about bankruptcy, so long as you tell the truth and have a decent lawyer, you'll be fine. OTOH, if you lie, all bets are off.

Brett Weiss
[email protected]

https://www.brettweiss.com/bankruptcy

Maryland, DC and Federal bars
Member, National Association of Consumer Bankruptcy Attorneys

--> Read our Bankruptcy FAQ at www.brettweiss.com/bankruptcy/FAQ/br_faq.htmwww.brettweiss.com/faq/br_faq.htm.

************************************************** ***************
The Small Print: This response is for discussion purposes only.
It isn't meant to be legal advice and you shouldn't treat it as
such. If you want legal advice, speak with a local lawyer
familiar with your state's laws who can review *all* of the
facts and the law applicable to your situation.
************************************************** ***************

[razorguns]

The Trustee *does* have authority to subpoena your brother. He can request records, call him in for a deposition, place him under oath, and ask questions.

*******

lol. And how will the trustee know this info in the first place? Think the trustee's even have the budget for a trial over $50 (yes federal courts will bill their agency for it)??

If al youre concerned if the 'under oath' part then :

The whole bk process takes 4 months if it's run of the mill. If one can't survive at all w/o loans, money from family - then clearly they are deserving of bk and should have no problem admitting if a family member is helping them out.

For ex: My income for past 6 months was $0. Even if Uncle Joe gave me $10k, it wouldn't have mattered.

If not - they should wait until discharge. Ain't that far ahead.

r