What to do with $1500??

[eventsdj]

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!

[Chowder]

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.

[backtoschool]

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.

[Chowder]

It depends on trustee and the situation.

Every single response could start with this sentence.

[music12]

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.

[LSUTiger32]

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.

[justplaintired]

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.

[brokeasajoke]

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.

[backtoschool]

Every single response could start with this sentence.

True. But in this situation especially, since whether gifts are income is debatable.

[backtoschool]

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.

[brokeasajoke]

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.

[PdxDavid]

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.

[bkmaggster]

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.

[DeadManCrawling]

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