Large Deposit Before Filing

[krispy12]

I am about to file bankruptcy soon & past few months I haven't been able to make my credit card payments. My parents don't know about it nor do I want them to. Thing is, my dad deposited a cd for 1 month for 100,000 using my name. This money is for his business.

I couldn't say no & when I came up with excuses of why I couldn't have any deposits, my dad found out through an accountant that I won't be affected by my excuse. So I signed my name to open up the cd for 1 month. Now my bf tells me that they will try to take that 100,000 to pay off the credit cards & rightfully so. But I'm not going to file until after that has been taken out which is this month. The problem is, I read somewhere that they won't consider me for bankruptcy anymore now that I had a large deposit even though it isn't my money. Of course in their eyes, they don't know it's my dads & it would look like my money.

Will I be living with huge debt & bad credit my whole life? Is it possible to still file & get a clean slate?

[ThreadsSnapping]

How did your dad open an account for you? Did you sign the paperwork to put the money in your name or did he do it without you?

TS

[krispy12]

I signed it after my dad prepared all the papers.

[Flamingo]

Let's see. You can somehow dance around the $100,000 that is now in your name and does not belong to your father and file BK and have a bankruptcy hanging over your head on your credit for the next 10 years or you can take your windfall and get yourself out of debt and avoid filing and having bad credit for the next 10 years. You can't have your cake and eat it too here as you ask in your posting in a situation such as this and I believe you are concerned as to your father about a few things...if you take this money and have to spend all or most of it to pay off debts (worried he may question where it went) or worried that if you file, he will find out (which he probably easily can if you have credit issues for several years.

You have some major financial decisions to make here. Maybe it's time to come clean with your dad about your situation.

[Pinkie86]

If I were you, I'd take that money to pay off the debt. Like Flamingo said, if you can avoid the heartache and trouble of filing, why wouldn't you? Did they give you that money for something specific or just because?

I'm in your boat in that I am NOT telling my parents about my BK because my mother would scream at me for hours on end, demolish me and then disown me.

[southernbelle]

Ditto Flamingo. I wish I had options before I filed. Honesty is the best policy. Come clean with your dad and save your credit rating. He loves you and will understand. Also, I wouldn't take chances with that much money and the possibility of the Trustee getting his/her hands on it to pay off your creditors anyway. It also depends on how much debt you are in, if a small portion of it can clear up your debt problems, it sounds like a good deal to me.

[krispy12]

The cd is expiring at the end of July. It was a one month cd for his business or something. I am behind in my credit card payments about 2 months now but trying to get money to pay. My dad is not giving me $100,000 nor is he helping me out of my debt & he doesn't even know about it. Even if he did, he won't help me.

I'm not trying to have my cake & eat it too. I've stopped using my credit cards for a few months now & was planning on filing around October or so but now this came up. I don't know if I can file anymore? More importantly, will my dad find out I filed?

Edit - Reading my 1st post makes it seems like he gave me a cd for 100K under my name. Nooooo. If that was the case, I'd pay off my debt right away!

[AngelinaCatHub]

I'm with "Flamingo", you are now stuck. If you could have leveled with Dad, and admit you make mistakes as all humans do, he could have put it into a Trust of some sort for you if his intention was to aid you in your estate or retirement. Right now, I am going through some similar stuff except for family. I am old enough and less fortunate to not have my parents alive. They will love you in any term, you know that. They will find out anyway, one way or other. Talk it over with 'Dad' and if he is understanding, pay off your debt, kill the cards, then tell Dad you will pay that amount back into some sort of IRA or the likes. He will understand, I'm sure.

[Flamingo]

The cd is expiring at the end of June. It was a one month cd for his business or something. I am behind in my credit card payments about 2 months now but trying to get money to pay. My dad is not giving me $100,000 nor is he helping me out of my debt & he doesn't even know about it. Even if he did, he won't help me.

I'm not trying to have my cake & eat it too. I've stopped using my credit cards for a few months now & was planning on filing around October or so but now this came up. I don't know if I can file anymore? More importantly, will my dad find out I filed?

Edit - Reading my 1st post makes it seems like he gave me a cd for 100K under my name. Nooooo. If that was the case, I'd pay off my debt right away!

I responded to your intial posting the way you worded it. So now you are stating that due to some business decision of your father, he put $100,000 in your name with your signature for one month (end of June was yesterday) so that money reverts back to him now? Do you have to sign it back since you signed the papers? You do have yourself in one situation now and will have some explaining to do if you do file and may have to get your father involved anyway due to all this so you will be able to file. Since you haven't filed yet, have you retained an attorney? If so, discuss this entire matter with him/her before you proceed with filing.

[pa308]

I'm no expert, but sounds to me like you might have to wait a year so that it doesnt show up on your filing. I agree with flamingo that you definitely will need to talk to an attorney.

[AngelinaCat]

The cd is expiring at the end of June. It was a one month cd for his business or something. I am behind in my credit card payments about 2 months now but trying to get money to pay. My dad is not giving me $100,000 nor is he helping me out of my debt & he doesn't even know about it. Even if he did, he won't help me.

Edit - Reading my 1st post makes it seems like he gave me a cd for 100K under my name. Nooooo. If that was the case, I'd pay off my debt right away!

Krispy12, I am trying to follow along as well. When I clicked the 'QUOTE' button on your post in order to respond, I found this Edit Note that does not appear on your published post of 08:48 PM.

Now, please, what is the real story?
Did you get a gift of 100K, yes or no?
Did your Dad transfer money to you on a temporary basis, yes or no?
If so, Why?
Did you sign papers for this money, yes or no?
If so, Why?
Have you EVER had control of this money, yes or no?
If so, Why or Why not?
Is your Dad going to take control of this money back, yes or no?

Okay, I am not really trying to beat you up (yes I am) but my questions are powderpuffs compared to what any BK attorney is going to grill you with.

If you intend to file, please add at least 180 days or more to your plans, after all this business with your Dad is finally finished.

Good luck to you.

[banca rotta]

I'm no expert, but sounds to me like you might have to wait a year so that it doesnt show up on your filing. I agree with flamingo that you definitely will need to talk to an attorney.

I was thinking that too. This may either look like a transfer of property or a preferential payment. You may need to wait a year to file or the trustee will go after the money you handed back over to your father.

[Flamingo]

If you read the OP's initial posting, she realized this could create an issue but she could not say no because she would have had to tell her father about her BK situation and his accountant said it wouldn't hurt her in any way. Whether or not that excuse would stand up to a Trustee's inquiry is beyond me but she should consult with an attorney prior to filing in case the attorney can get around it with that excuse. I am wondering why her father had to do that....

[krispy12]

Krispy12, I am trying to follow along as well. When I clicked the 'QUOTE' button on your post in order to respond, I found this Edit Note that does not appear on your published post of 08:48 PM.

Now, please, what is the real story?
Did you get a gift of 100K, yes or no?
Did your Dad transfer money to you on a temporary basis, yes or no?
If so, Why?
Did you sign papers for this money, yes or no?
If so, Why?
Have you EVER had control of this money, yes or no?
If so, Why or Why not?
Is your Dad going to take control of this money back, yes or no?

Okay, I am not really trying to beat you up (yes I am) but my questions are powderpuffs compared to what any BK attorney is going to grill you with.

If you intend to file, please add at least 180 days or more to your plans, after all this business with your Dad is finally finished.

Good luck to you.

Sorry for the confusion everyone, I was typing in jumbles probably cause I'm freaking out.

Here's the story in one paragraph. Since January 2008, I knew I was going to file. I stopped using my credit cards as suggested & just made payments. Now I'm late about 2 months. My dad doesn't know about my financial troubles & will not help anyway.

He had some proceeds or something to do with his business going into a 1 month cd using my social & name. It is NOT a gift to me, he is taking it out end of July (corrected my post above) & will be using it for his business.

I went to the bank & signed the papers. I came up with excuses for reasons why I can't get a deposit on my account but my dad talked to an accountant & said I didn't have to worry legally. I made up some excuse about some loans & stuff. I can't tell him I'm filing bankruptcy!

So I never had this money. It's just sitting under my name right now. I am worried sick because I was told I can never file now, or at least for a few years!

I will call the lawyer I had a consultation with a few months ago & ask for his advice. I'm really freaking out & with these creditors calling me, it's not helping.

[banca rotta]

Sorry for the confusion everyone, I was typing in jumbles probably cause I'm freaking out.

Here's the story in one paragraph. Since January 2008, I knew I was going to file. I stopped using my credit cards as suggested & just made payments. Now I'm late about 2 months. My dad doesn't know about my financial troubles & will not help anyway.

He had some proceeds or something to do with his business going into a 1 month cd using my social & name. It is NOT a gift to me, he is taking it out end of July (corrected my post above) & will be using it for his business.

I went to the bank & signed the papers. I came up with excuses for reasons why I can't get a deposit on my account but my dad talked to an accountant & said I didn't have to worry legally. I made up some excuse about some loans & stuff. I can't tell him I'm filing bankruptcy!

So I never had this money. It's just sitting under my name right now. I am worried sick because I was told I can never file now, or at least for a few years!

I will call the lawyer I had a consultation with a few months ago & ask for his advice. I'm really freaking out & with these creditors calling me, it's not helping.

Your best bet would be to explain all this to a bankruptcy attorney. There are situations where debtors such as parents have cars in their name and transfer it to their kids inside the 2 year look back period. They need an explanation and usually have one since this is typical of most parents.

As for 100k in cash going from your dad to you then back to your dad inside the 1 year look back period (2 years if it's a car) No one here could tell you how this will turn out.

Sorry about your troubles.