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What to do with $1500??

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    What to do with $1500??

    My in-laws graciously borrowed us $1500 for October Mortgage. We are meeting with a lawyer next Tuesday to hopefully file Chapter 7.
    Can I deposit that money before then and pay mortgage early with it? We have enough in savings to pay lawyer (but thats it, then broke..)

    I'm assuming it would look fine to deposit $1500 and then have a withdraw for $1400 the next day or so to mortgage.. ??? Do they care it was borrowed? I certalinly don't want to file in-laws as a creditor!

    Thanks!
    Filing cpt.7 11/09 341- 1/21/10
    Report of no distribution 1/21/10
    Scheduled for discharge 3/22/10 (on my 15th wedding anniversary!)

    #2
    Might not be anything to worry about. But if you deposit that, it's income. If they pay it directly you wont have to claim it.
    No Asset 7 closed 11/09

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      #3
      Originally posted by Chowder View Post
      Might not be anything to worry about. But if you deposit that, it's income. If they pay it directly you wont have to claim it.
      It is debatable whether the $1,500 would be considered a gift or income. It depends on trustee and the situation.

      To the OP, if you are close to the median income, then if you could have in-laws pay the mortgage directly with the $1,500 that would be preferable.
      You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

      Comment


        #4
        Originally posted by backtoschool View Post
        It depends on trustee and the situation.
        Every single response could start with this sentence.
        No Asset 7 closed 11/09

        Comment


          #5
          Originally posted by Chowder View Post
          Every single response could start with this sentence.
          true!!

          i also think if you have them pay it directly, without it passing through your hands, it's better.
          filed ch7 May 09
          341 june 09
          discharged, closed Aug 09

          Comment


            #6
            Just go get a money order with it and send it to the mortgage company. I would not pass it through your checking account simply because there is no reason draw attention to it.
            New Orleans: Home to the World Champion Saints, the biggest enviromental disaster and the biggest natural disaster in the history of this nation. Proud to call it home!

            Comment


              #7
              I agree with everyone else. Just have in laws make the payment, get a money order avoid putting this into your acct. No sense in having a large deposit go in so close to filing.
              Filed Chapter 7 June 4 ~ 341 July 20 ~Last day of objections Sept 18~Discharged/Closed Sept 21

              Comment


                #8
                My parents gifted us money for the attorney's fees. I cashed the check, gave the lawyer cash. It's listed on my petition as a gift. This all happened the same month I filed. It wasn't part of my 6 month look back due to the fact that it was the month of filing. I never heard anything about it.

                I don't think it would've mattered any way, I was had a negative 900.00 monthly DMI on my means test. I was OVER median by roughly 20,000.00 before completing the means test... So I was a bit cautious in handling the gift but it all worked out.
                07/31/2009 - Filed Chapter 7 Western District NC
                09/02/2009 - 341 Meeting - DONE!
                11/02/2009 - Final date for objections
                11/09/2009 - Discharged & Closed!!!

                Comment


                  #9
                  Originally posted by Chowder View Post
                  Every single response could start with this sentence.
                  True. But in this situation especially, since whether gifts are income is debatable.
                  You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

                  Comment


                    #10
                    Originally posted by brokeasajoke View Post
                    My parents gifted us money for the attorney's fees. I cashed the check, gave the lawyer cash. It's listed on my petition as a gift. This all happened the same month I filed. It wasn't part of my 6 month look back due to the fact that it was the month of filing. I never heard anything about it.

                    I don't think it would've mattered any way, I was had a negative 900.00 monthly DMI on my means test. I was OVER median by roughly 20,000.00 before completing the means test... So I was a bit cautious in handling the gift but it all worked out.
                    I was gifted part of my lawyer's fees as well, and the trustee did ask me about the deposit, but when I said it was a gift, he moved on. He was more interested in making sure it wasn't a loan then worrying about whether it was income or not, since I was way under the median income.
                    You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

                    Comment


                      #11
                      Originally posted by backtoschool View Post
                      I was gifted part of my lawyer's fees as well, and the trustee did ask me about the deposit, but when I said it was a gift, he moved on. He was more interested in making sure it wasn't a loan then worrying about whether it was income or not, since I was way under the median income.
                      My trustee asked us next to nothing. He was flying through all the 341s that day. I think he had a lunch appointment or something. My 341 was under 90 seconds. It took me longer to get out of the room than the meeting lasted.
                      07/31/2009 - Filed Chapter 7 Western District NC
                      09/02/2009 - 341 Meeting - DONE!
                      11/02/2009 - Final date for objections
                      11/09/2009 - Discharged & Closed!!!

                      Comment


                        #12
                        Originally posted by eventsdj View Post
                        My in-laws graciously borrowed us $1500 for October Mortgage. We are meeting with a lawyer next Tuesday to hopefully file Chapter 7.
                        Can I deposit that money before then and pay mortgage early with it? We have enough in savings to pay lawyer (but thats it, then broke..)

                        I'm assuming it would look fine to deposit $1500 and then have a withdraw for $1400 the next day or so to mortgage.. ??? Do they care it was borrowed? I certalinly don't want to file in-laws as a creditor!

                        Thanks!
                        Like the others say you would be better off having them pay the mortgage directly without passing the money through your account.

                        Also, you said they "borrowed" the money to you... I assume you mean loan. Not to grade your paper but if it is a loan and not a gift you would have to list them as a debt. More importantly you do not want to pay them back that money as it would be preferential payment and the trustee could go after them to get that money back.

                        Someone else correct me if I am wrong here.
                        9/30/09 * Filed Ch7
                        11/9/09 * 341 - Uneventful
                        1/11/10 * Closed

                        Comment


                          #13
                          Originally posted by PdxDavid View Post
                          Like the others say you would be better off having them pay the mortgage directly without passing the money through your account.

                          Also, you said they "borrowed" the money to you... I assume you mean loan. Not to grade your paper but if it is a loan and not a gift you would have to list them as a debt. More importantly you do not want to pay them back that money as it would be preferential payment and the trustee could go after them to get that money back.

                          Someone else correct me if I am wrong here.
                          The money can be paid back after discharge with no problems.

                          Comment


                            #14
                            Immediately get a money order and send it to me.

                            PM me for my address.

                            Seriously, this is not a large amount of money, but you need to ask the attorney or possibly avoid mixing your relatives up in your bk. If they don't care, I doubt it will hurt.

                            It may affect your 6 month lookback if you have not filed.

                            Good luck!

                            -dmc
                            11-20-09-- Filed Chapter 7
                            12-23-09-- 341 Meeting-Early Christmas Gift?
                            3-9-10--Discharged

                            Comment

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