We rent a room out for extra income. Disclose?

[tools2teach]

We are filing chapter 7. Do we have to disclose the extra income we get for renting out a room? We have been renting a room for a year that gives us an additional $12,000 income. How badly will this hurt us in passing the means test. I would say we are borderline, but my attorney says he is confident that we are chapter 7. I didn't tell him about the extra income because I thought there was know way they would be able to find out unless they look at our bank statements for a year and see $700 check coming in every month. Do they really look for these things?

[BKOnce]

Hide da cash under the pillow.

[tools2teach]

If i would have known...I would have. But these are checks being deposited every month.

[mmenz22779]

you run the risk, the problem is with 700 consitant month after month that may look fishy to a trustee you are better to get cash and a good safe.

In anycase it is documented and they can pull bank records as far back as they wish if they do question it there is really nothing you can tell them. You really have one option.

wait for 6 months till those payments fall off your income if you stil want to collect rent then do it in cash, I would not hide it from the lawyer as they are your side not theirs, and you dont want to have him blindsided at a meeting. If they are a good lawyer then they will advise you what the best route is. I have already told my lawer everthing including some recent purchases i had to make and they are advising me what to do.

That is what you are paying them for anyway. It would suck to lie over 6k lose the case, lose your money you gave your lawyer and possibly get hit with fraud charges.

all over 6k in income? Not woth it to me. I have rentals and i will report the income for 3 months and the other 3 months my tenents will get to live there rent free. this way i am still reporting the income on my means test not hiding anything just incase and using the rental money /6 really helps with the means test.

Did you sign a contract with the person living with you. If they get mad at you they could tell the court that they paid you money, you see what i mean there is just too many ways this could go bad.

good luck though,.

[ready2puke]

I think you may have to disclose it, since its income that shows...I have a student living with me and she pays me alittle but I have to buy her food. I'm not showing it as its cash and its not much....after food and extra utilitie bills.

[Doghouse]

If your renter pays you cash, just go to their bank and cash it rather than deposit into your bank acct.

[JRScott]

Since you have already been depositing the funds into your bank account it is better to go ahead and admit that you rent the room and the amount. The trustee will most likely discover it when he examines your bank records and far better that he sees it honestly stated on your petition rather than leaving him thinking your hiding assets and he needs to dig deeper.