unexpected lump sum from ssdi

[mrbuggs]

We recently filed for a chapter 7 in the state of ohio. We had our 341 meeting and everything went well. ater all this and much to our suprise we recieved a back pay from soc sec disability. my question is,, Do we need to notifiy our lawyer or the courts? even with the bankruptcy we our in terrible finaicial trouble and could use that money for a number of things that are needed.

[justbroke]

No notice required... especially since you are past the 341 Meeting. You may want to tell you attorney, but that's about it. S/he'll probably tell you that it doesn't affect anything since it was received after you filed.

[carlsbadmike]

I also will start receiving SSDI a few days after my 341 meeting. When I filed I was receiving disability insurance payments from a private policy and that's the income I stated. Now with the SSDI, my income will be increased by $600 per month which from what I've read, I don't have to divulge since I wasn't receiving this on my filing date. I'm afraid if I declared this I might not qualify for CH 7 and I'm not sure if I should bring this up to my attorney. I feel like if I don't bring it up then we won't have to discuss it and it won't be an issue. If the BK trustee doesn't ask if my income has changed then I feel like I'm ok not bringing it up. From what I've read on here...the BK is a snapshot of your situation on the day that you filed...it's not a motion picture, so this shouldn't be an issue.

[thais]

95 days since the meeting of creditors and an unexpected cash gift, please HELP!!

I am located in NYC. I filed for chapter 7 on 02/27/2010. My 341 was on 03/04/2010. At the time, I was receiving public assistance and I didn't have any property. At the end of May, I received a cash gift of $13,000 from my parents and my family in Dominican Republic, is not an inheritance or anything they just want to help have a fresh start. I did not know what to do with so much cash and I though it was save to put it in the bank. I did this on May 30th. I also found a job, and I already had $2,000 in cash saved. Would the fact that I put all this money in a savings account jeopardizes my discharge? today is my 99th day and I am so scare since I have student loans that I was going to repay with this money!!!

[carlsbadmike]

Thais,

Inheritances within 6 months after a bankruptcy filing are considered part of the bankruptcy estate so you need to reveal this income to the bankruptcy trustee or you could possibly end up being fined and or put in jail. This is just based on my knowledge and research. I am not an attorney.

[catleg]

Don't worry there is nothing in BK law restricting gifts at any time after filing chapter 7. It's the same as any other income. A chapter 7 is strictly a snapshot in time when you file. If you have any doubts I would pay off the student loans and put the money out of reach of anyone.

[carlsbadmike]

Before my 341 meeting I told my attorney that with my SSDI income I was making more money and I was afraid I would no longer qualify for CH 7. She said it would not affect me qualifying for CH 7. During my 341 meeting, the bankruptcy trustee asked if my income or expenses had changed and my attorney told her that I was now receiving SSDI and she didn't question it any further. I worried for nothing.

[catleg]

Income derived from social security in any form is exempt.

[thais]

Thank you everyone for your fast responses!

[music12]

social security is exempt anyway, so it should not make any difference.

and, a gift (not inheritance) is yours to keep since it was received after filing.

so don't worry, be happy

[catleg]

This begs an interesting question.

If someone gives you a big gift on their deathbed, rather than passing it through as an inheritance, then it's not touchable for BK purposes, correct.
Do you think that holds true for a ch13 also?