Gifts in Ch. 7 Bankruptcy

[PinkPenguin]

Do gifts have to be included as income for a Ch. 7 bankruptcy?

I have received several gifts of money over the past year from my family, now that I have been going through difficult financial times.

I keep reading conflicting evidence on this, at first I thought I was required to include all gifts as income, but now I'm not sure.

I am filing pro se, since to be honest I don't even have enough to pay a lawyer.

I can say that these gifts weren't regular, like it wasn't a set amount per month or regular income.

I appreciate any advice, thank you!

[justbroke]

It really depends on factors such as regularity and in which district you may have filed. Generally, if it was received within the 6-month lookback and was a one-time event, then it may not be "regular" and may not need to be included. Regular is such a strange undefined word in bankruptcy, that if you received money from someone "more than one time", then is it regular?

Unless you're receiving an inordinate amount of "regular" gifts from family and it's causing issues with your filing, then you may be able to just show these gifts on your Statement of Financial Affairs (SOFA) and be done with it. Otherwise, you may need to include them as income.

Whether you need to include these gifts as income is a legal question that I can't answer. You may consider getting some free consultations (plural) and asking about gifts received. A local attorney is better at understanding what's consider "income" in your District.

I apologize for not being able to give you a black and white answer!

[PinkPenguin]

Interesting indeed! I am now coming around to understanding the interpretation of the law and how things aren't always black and white.

I ultimately decided to list all gifts from my family under other regular contributions on Schedule I. I am still tripped up a bit by the word regular... I mean they aren't regular in the sense that I can count on them every month or receive them the same day of every month... but I have received quite a few gifts over the past year.

I sort of figure that my situation is dire enough at this point that gift income hasn't made a significant difference in my ability to pay back all my debts... so I am figuring it shouldn't make too much of a difference overall, including it or not including it.

In the word case scenario, I am hoping they would let me make that amendment or correction...

[LadyInTheRed]

PinkPenguin, please consult with some local bankruptcy attorneys before deciding whether to list gifts as income. Most give free consultations.