How bad is this?

[trueblues]

I wrote earlier that several years ago my elderly in-laws had us hold onto $6,000 for them. They live on Soc. Sec. and were worried they wouldn't be able to get into a nursing home if they had any savings. I forgot about it. My husband had the money in his checking account all this time, he has never dipped into it.

http://www.bkforum.com/showthread.php?t=37933

Yesterday he gave his sister a check, told her we were applying for student aid for our daughter and couldn't have the money in our name. When I freaked out, he said it wasn't ours and he didn't want to lose his parent's money.

Husband would rather live in a cardboard box than have his family find out we're bankrupt. We planned to file in October.

Are we totally screwed now?

[kennman]

Trueblues:

I am sorry, I don't understand what you are asking?

[trueblues]

Trueblues:

I am sorry, I don't understand what you are asking?

For about 5 years, my husband has been holding on to $6,000 of my in-laws savings. It wasn't a loan or a gift. He has never spent any of it.

My husband was worried about losing their money when we file BK so he gave it to his sister to hold onto for them. (from his checking account).

How will this look to the trustee? Like we're trying to hide money? Can we explain it was never ours to begin with?

[fltoo]

Looks like a fraudulent transfer of cash.

Lookback on this is two years. Ask your attorney if there is any way out with a paper trail of the money.

[StartingOver08]

Looks like a fraudulent transfer of cash.

Lookback on this is two years. Ask your attorney if there is any way out with a paper trail of the money.

Yep. There is more in the linked article below, check out the link:

http://www.************************/...nt-conveyance/

[trueblues]

Looks like a fraudulent transfer of cash.

Lookback on this is two years. Ask your attorney if there is any way out with a paper trail of the money.

Ok, thank you. I can't hire an attorney until I save up some more money for a down payment so I guess I'll have to worry about it until then. There's no way we can wait two years to file.

I'm just venting now, so please feel free to ignore it. I was upset that my husband gave his sister a check, but it's a shame that trying to do the right thing by his parents is assumed to be fraud. If we had gone out and spent all their money we'd be OK.

Edited: Whew! I was able to reach my sister in law and asked her not to deposit the check. She was going to do it in a couple hours!

I guess we'll have to keep the money until I can get a lawyer's advice. Hopefully, if we have to spend it or can safely move it somewhere, it won't be too close to filing.

THANK YOU both for the advice and link! You saved our butts.