Made some debt payments with cash... red flag?

[goodtimes50]

We're seriously considering filing Ch 7 and I have a question. Over the last few months we've made some of our debt payments by money orders that were purchased with cash. Obviously, there's no paper trail in our bank statements. You'd have to look at the payment record for each creditor, then see that there were no matching debits to any of our bank accounts, and then put 2 + 2 together. Is this likely to happen or is that just not something that would typically come up?

[goodtimes50]

A thought just occurred to me. Hypothetically speaking, would it make any difference if this cash were a gift versus actual income?

[keepmine]

A thought just occurred to me. Hypothetically speaking, would it make any difference if this cash were a gift versus actual income?

No idea where you're going with this statement.
No law says you can't use cash. Just disclose what you did and it'll be no issue.

[goodtimes50]

Okay, let me rephrase. If a relative gives me cash as a gift to help me out do I need to declare that as income on the means test? Beyond that, is it likely to be an issue later if I've used the entire gift to pay down debt prior to filing (i.e. I don't have it stashed somewhere)?

[daylate]

I would have thought that they would have given you a loan that you can pay back whenever or if ever rather than a gift.

[SunshineGal]

Be honest with your attorney and disclose everything!

[AngelinaCatHub]

Okay, let me rephrase. If a relative gives me cash as a gift to help me out do I need to declare that as income on the means test? Beyond that, is it likely to be an issue later if I've used the entire gift to pay down debt prior to filing (i.e. I don't have it stashed somewhere)?

Never rephrase anything. Only the truth will be respected and I'm not saying you are not truthful, but nomatter what mistakes you make, if you are honest admit anything that you actually did, the Trustee will be your "friend". Lie and you have caught a devil by the tail. LOL.

You have done nothing wrong except in my opinion if you were contemplating bk, you threw that money away. You could have used it for expenses and exempt things as food, clothes and the like. Now, when do you expect to file? Time is your friend and if you paid bills with cash, that is no big deal. Did you keep any money order reciepts? If not you can ask the creditor for a printout of your years payments. It is always a way to reconstruct your records. 90 days from any "questionable" stuff. You don't sound like you have done anything wrong but 90 days is usually a safe time frame. Do not use any credit cards or credit in that time. Keep your checking account drawn down (do NOT attempt to hide assets though). Fraud is a baddy and they can go back years if you have committed it. (I reiterate, I'm not saying you have, just giving you a run down on the BIG no, no's.)

Oh, and by the way, welcome to the Forum and you are joining a decent family of helpers and advisers. Please note that no advice here is legal advice, only experience, opinion, and wisdom. Consider us your family. Share a bit more info to aid us in aiding you. 'Hub

[frogger]

A thought just occurred to me. Hypothetically speaking, would it make any difference if this cash were a gift versus actual income?

In the immortal words of HHM, we don't do hypothetically speaking here.