Family Help

[paris54]

Hi...New to this forum,
I am going through chapter 7 bankruptcy and have just finished my 4th visit with my attorney. I am now preparing to do the first of 2 credit counseling courses to begin the filing process. I am having problems paying for my rent, food and some other bills and my family wants to give me $10,000 to help cover expenses and attorney fees. I have a credit union account which i have no problems with but i wanted to put the money into a different bank. Is it ok to accept the help from my family or should i wait until i file or after the 341 meeting. I do not want to do anything illegal, any help would be appreciated.

[AngelinaCatHub]

NO!!!

I can't say it better. STOP RIGHT NOW. Start reading the 'stickies' here. You are about to lose your families' money and screw your bk. 'Hub

[paris54]

Thank you

[AngelinaCatHub]

Okay, after my apoplectic attack let me start over and say this calmly. If you take 10K from your family, it becomes your asset. You are suffering bankruptcy and it would be such a loss of good money. First, as an asset and once filed, it does not belong to you but to the Trustee, and you will lengthen you bk by about six more months. Then, if you intend to pay off your family, that is preferential and the Trustee can take it from them. Then, you will fail your means test if you have this asset.

At your 341 and you are under oath of perjury, (a felony) and will be asked, do you expect any funds coming your way in the future.

The Trustee looks at any transactions above $600 dollars and gifts, etc.

If you need help, let your family purchase your food, pay your rent with their own check book, not yours, give you clothes and stuff. Even that would have to be reported by the way.

The best thing to do at this time is research many of our 'stickies' on this subject, or Google bk7 and find out more about it. Also Nolo Press has a chapter 7 book that is very good. Down loadable for about 17 bucks. But PLEASE do not take any monies for help at this time. Just hang in here for awhile. 'Hub


EDIT: Add on: your family can pay your attorney's expense but the money cannot touch your hands. Net even for a second. It cannot be touched by you in any way or associated with you.

[JackBondLove]

There is no problem taking the money, so long as you disclose to the trustee that you were given this cash. But the best thing to do is to get the money in small increments, and then make sure to spend the money on your needed living expenses (and the BK attorney fee, of course) as anything left in your bank account at the time of filing will become part of the BK estate.

[AngelinaCatHub]

There is no problem taking the money, so long as you disclose to the trustee that you were given this cash. But the best thing to do is to get the money in small increments, and then make sure to spend the money on your needed living expenses (and the BK attorney fee, of course) as anything left in your bank account at the time of filing will become part of the BK estate.

JBL, I have to disagree unless the OP becomes 'clandestine' and that is not the honest way to do things. The "snapshot" of her bk is in the original papers. If she starts to receive 'gifts' for her living, that is income and changes the snapshot. If the folks wish to help her, she need not touch the money herself so I stated above to have them pay those expenses directly to the account involve, such as the lawyer, etc. Pay the lawyer outside of her cash flow. 10K is a lot of money to filter.

I think this is risky and she only has about 90 days before it is all over. She can wait that long, it took longer to get where she is today. To get involved with a 2004 (a hearing investigation) is not worth risking her whole bk.

Only my opinion. 'Hub

[Dizzy]

I have a question along these lines but I don't want to hijack this thread so I will start a new one.

[Moneypenny]

Is there a reason this discussion is going on without any consideration of exemptions? (for instance, everyone already knows that this poster doesnt have any exemptions in their jurisdiction).

1. Moreover, I took $1000 from my parents and my lawyer told me "a gift is not income" when i asked about whether i should take it, in a tone of voice like "I would love to litigate if anyone challenged me on that." Other lawyers told me it is a grey area.

2. In any case, I believe the 1K is covered in my state's (CA) liberal exemption provisions, since my other assets dont amount to much either.

[newbie2]

Is there a reason this discussion is going on without any consideration of exemptions? (for instance, everyone already knows that this poster doesnt have any exemptions in their jurisdiction).

1. Moreover, I took $1000 from my parents and my lawyer told me "a gift is not income" when i asked about whether i should take it, in a tone of voice like "I would love to litigate if anyone challenged me on that." Other lawyers told me it is a grey area.

2. In any case, I believe the 1K is covered in my state's (CA) liberal exemption provisions, since my other assets dont amount to much either.

The OP hasn't filed yet, and also hasn't said what state they are in so we don't know what exemptions are. Telling the OP to not deposit $10,000 in to their account prior to filing is prudent. Especially since the OP hasn't (apparently) received attorney advice regarding this.

Your case is different. Your attorney ok'd it.