Cash gift from parents

[WC Nurse]

We just came home from visiting my dad and stepmom for a week. They know my husband has been laid off for a year and that things have been hard for us but do not know that we filed BK or that we are 2 months behind in our mortgage (and there is no way that I'm going to tell them). My stepmom drove us to the airport and before we boarded, handed me an envelope and said not to open it until we were on the plane.

To my surprise, the envelope had a very nice note and a $5k check, which just happens to be the amount that I owe the mortgage company (we are keeping our home). I'd love to deposit the check right away and get the mortgage current but am worried that it might mess up our BK...maybe they'd make us divide it between all our creditors?

We had our 341 on 5/6/09. Is it safe to deposit the check now and pay the mortgage? Should I wait until after 7/6/09 (the last day for objections) or until we are discharged?

[justbroke]

Were they paying you back for anything? Did they owe you any money?

Speak with your attorney. In most States, it's okay to take something that is non-exempt (like cash) and convert it into something that is exempt (like your homestead). Additionally, payments to secured creditors are usually okay too (house, car) because they are secured by property and have more priority over the unsecured creditors in a Bankruptcy (like credit cards and other unsecured credit).

I think that 7/6 (60 days after 341 Meeting) should be fine. I personally don't see an issue, but you never know.

[OregonMom]

Cash it at their bank and send money order to catch up?

[LuciluS]

OregonMom's idea is a good one. Sometimes problems in cashing sizeable out of state check unless you know someone at the Bank/or small local bank.

Another suggestion: Ask dad and stepmom to mail check directly to your mortgage company with Acct # noted on check.

I would also recommend calling your Attorney.