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    Insider Payments? Not sure.

    Since the Economy has tanked, there's been a serious cut down in available work for me, at my job. I haven't been fired, but often times there's no money to be made. As a result, I've been depositing cash advance checks into my checking account. The last large deposit was very early in December for $4000. Over time, Ive accumulated 32-33K in total unsecured depth, on 9 credit cards.

    A lot of the deposited money has gone into staying current with my card payments, but now I've reached the end of the line because the payments have gotten too high, and things still haven't improved at my job. though likely in the spring-summer, business will pick up, I just can't stay current with the monthly payments anymore.

    I've been living at my sister's house for several years and have been writing her monthly personal checks for $400.00 as a Room & Board type of payment. In the past year, much of the money in my checking account has been from cash advance checks, with very few direct deposits from my job. I didn't claim rent on my tax forms this year.

    What will be the Likely outcome of all this, if I file?
    Last edited by TheAbyss; 02-20-2009, 09:50 AM.

    #2
    Is there no one who could tell me what I'd likely run into if I filed, given my situation? If I have a big problem, I need to know before consulting a lawyer.

    Comment


      #3
      I don't think it's a insider payment. You are paying rent.
      Chapter 7 07/30/2008
      341 09/17/2008
      Discharge 11/21/2008

      Comment


        #4
        I'd be concerned about those cash advance checks and stop writing them to yourself now if you plan to file.
        Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

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          #5
          Thanks for the replies.

          So even though neither me, or my sister claimed rent on our tax forms, there shouldn't be much of a problem? I also worry that the IRS might go after her...though I guess it's not likely. (Though not impossible)

          I did stop writing cash advance checks after finding this forum. the beginning of March will make 90 days since the last one. Is it at that point I should retain a lawyer, and perhaps wait another 3 months to file? (Given that the last check was a large amount)

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            #6
            Since it has been more than 70 days since your last cash-advance check, you should be okay with filing now if you cannot wait till March.

            And I wouldn't worry about IRS coming after your sister to audit her for the rent money.

            best

            Comment


              #7
              Originally posted by dealdas View Post
              Since it has been more than 70 days since your last cash-advance check, you should be okay with filing now if you cannot wait till March.

              And I wouldn't worry about IRS coming after your sister to audit her for the rent money.

              best
              dealdas is right. IRS won't look at small stuff like that. It is not an insider payment and don't call it rent either. Call it sharing the expenses of the house hold. It pays your share of her light bill, your share of her cable bill and your share of her wear and tear on HER house. Got the idea? Not a lie, but constructive use of the English language. LOL 'Hub
              If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

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                #8
                I'm glad to read that they're not insider payments.

                Thanks for the replies.

                Comment

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