Cash gifts an issue?

[Humonese]

Filing Ch. 7 on Monday. I've been out of work and the only thing that's kept our heads even remotely above water is three $1000 gifts to us from my wife's mom. We haven't been late on the mortgage or either car, and we've made minimums on all our credit cards.

My mother-in-law also gave us the $2500 we need to file on Monday. Are these gifts and their use going to become an issue? I know they look at everything over a certain amount.

[fltoo]

No, not an issue unless you are super close to the state median.

Why are you still paying your cc though? You could have stopped paying a long time ago and used the money saved to pay your lawyer.

Have your MIL write a check directly to the lawyer though.

[AngelinaCatHub]

You may have to list this, however, the reason was "life or death" for you to excist. Right? Also it was a family gift to you for a spacific purpose, bk lawyer as well as you getting to live on and get to your "new start". I don't think you will have any problem. Now, make no attempt at paying them back if you have an idea to do so. That makes other problems in the bk. 'Hub

[Humonese]

We didn't stop paying months ago because we were trying to avoid bankruptcy in hopes that I'd land a job. In retrospect, we should have stopped sooner. I have to admit though, I HATE the calls we're already getting and we're only 1 week late on 2 cards.

She already cut us a check and wife deposited (despite me telling her not to!) I guess we'll just deal with it, it was gifts to keep the bills paid and pay for the bk so at least I'll be telling the truth!

[lalap123]

So do monetary gifts count as income or no?

[Humonese]

No idea, but we're nowhere near the income line and we crushed the means test so it doesn't really matter. I was just worried about looking fraudulent.

[keepmine]

Yes, the gifts count as income if deposited into your bank account. If you have someone that is willing to help you out, ask them to write checks directly to the utilities, mortgage company, lawyer,etc. and pay on your your behalf but, the funds are never in your possession.
It's not fraud to receive a gift prior to bk. Many here have had parents or other family help them out during hard times. It's also not illgeal to try and structure the gift so it does not hit your accounts and skew the means test.

[eddiep]

I know this is not going to help but my lawyer told me that a loan from family does not count as income. The money was deposited in my account and we have not yet file, so we shall see! But my lawyer insists this will not count, and I have asked him twice. Maybe this is something that he knows our local court allows. So ask your lawyer.