Can they touch money that family gives to support you?

[debtmonster]

The definition of "income" varies depending on where you hear of it...

Definitions of income on the Web:

"Money one earns by working or capitalising off other people's work"
en.wiktionary.org/wiki/income

"Gross earned income, less business expenses, but before any other deductions. Income includes salaries, wages, fees, commissions, bonuses, business profits, or other payments for personal services. It does not include unearned income from savings, investments, or real property."

https://www.doctordisability.com/glossary/

"The amount of money received for labor, for services, from the sale of goods or property, or from investments."

https://www.numbernut.com/glossary/i.shtml

"means any money received from any source, including but not limited to remuneration for labor, products or services; money received from governmental assistance programs; tax refunds; prize winnings; pensions; investments; and money received from any other source."
spd.iowa.gov/staticpages/index.php

"Money earned through employment and investments."

https://www.wdfi.org/ymm/kids/glossary/default.asp

"Excess of revenues over expenses."

https://www.vba.va.gov/ro/central/stpau/Veterans/Mortgage%20Definitions.html

"Generally defined, is the money that is received as a result of the normal business activities of an individual or a business."

https://www.njmandco.com.au/definitions.html

[debtmonster]

It's going to go down like this (remember, this is just theoretical, but I'm confident that this sort of questioning will occur):

Trustee: you list no income, where do you get your support?
Debtor: Well, my family pays my bills.
Trustee: how do they do that?
Debtor: Well, my brother gives me money by depositing money into another family member's account so that they can pay my bills.
Trustee: Interesting. How much money is in that account?
Debtor: $XXX
Trustee: Why did you not list that as income?
Debtor: Because it never touches my hands... and...
Trustee (interrupting): But it's paid to your benefit, right?
Debtor: Yes.
Trustee: I'm going to continue this 341 Meeting in order to dig further into this matter.

Of course, this may turn into nothing and the Trustee just says "okay" and doesn't want to inquire any further. I just pasted a scenario in which you could be dragged into a line of questioning that may raise questions, based on other facts included in your schedules.

In the end, I don't think it will go this way of inquiry, but you should have a really good (truthful) story on the account and how you are surviving. You never mentioned who you live with?

I guess my family not helping me at all would be a total blessing in disguise. I was always mad at friends and family not helping me out financially, but if that scenario was to happen at my 341, I would have not been a happy camper.

What if the relatives would simply pay your bills for you and not give you money to pay them on your own? Instead of a relative giving you the money to pay a phone bill, why don't they just add it on the on-line bill pay and pay it or write a check themselves? That's what I have done so far. I will pay part of the electric bill directly but will never give the person they money to pay it on my behalf that when I am ensured that the bill will be paid.

That way if you say you have no income, you really mean it. Just because other people are paying for stuff on your behalf does not constitute an income. An income is actual monies going into your account.

[justbroke]

What if the relatives would simply pay your bills for you and not give you money to pay them on your own? Instead of a relative giving you the money to pay a phone bill, why don't they just add it on the on-line bill pay and pay it or write a check themselves? That's what I have done so far. I will pay part of the electric bill directly but will never give the person they money to pay it on my behalf that when I am ensured that the bill will be paid.

My post and that dialogue was hypothetical. Trustees will ask where your money comes from and who pays your expenses, if you're unemployed. The distinction is probably how you word it, since it's paid for your benefit, but never directly received by you personally.

[SDVikings]

Chapter 13

OK so here is question on family money being taxable. My husband and I are in our third year of a five-year plan for Chapter 13 and I was just informed by my mother that my brother (who has taken over the family farm) will be starting to distribute rent payments to myself and my two sisters!!! My family does not know about our bankruptcy and we would like to keep it this way. I am assuming this is considered 'income' even though it is sort of my inheritance etc. She did not inform me nor has my brother informed me of how much or when . . is there any way around this? Will the bankruptcy trustee take this money?

[justbroke]

She did not inform me nor has my brother informed me of how much or when . . is there any way around this? Will the bankruptcy trustee take this money?

You are supposed to disclose this, and it will probably show on your taxes anyhow. If you filed with an attorney, ask for some advice on how to proceed. If the amount is less than 10% of your income, then you'll probably be okay. However, if it's significant, this is a change in income and usually needs to be reported to the Trustee. The Trustee will then determine how much, if any, they want from the payments.

I can't tell you if it passes any threshold that your Trustee may or may not have. That's the only reason I ask you to seek advice from your attorney.