Just a quick question, my parents gave us the money to file Chapter 7, just curious will the trustee, (or anyone else) ask where we got the money from. I am just nervous to deposit it in our checking account.
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Question 9 on the Statement of Financial Affairs address this issue. It states:
“List all payments made or property transferred by or on behalf of the debtor to any persons, including attorneys, for consultation concerning debt consolidation, relief under the bankruptcy law or preparation of the petition in bankruptcy within one year immediately preceding the commencement of this case. . . (state the) date of payment, name of payor if other than the debtor (and) amount of money or description and value of property.”
If you answer this question correctly, the Trustee will know how you got the $$ to pay for the bk. Further, your attorney is required to list the source of the payment of his fee on the 2016 Statement he must file with the Court.
Not a big deal.
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Do they contact the person that gave you the money though. I have the check, I just didn't deposit it into my checking account yet, I definatley don't want anyone to contact my parents, they know nothing of this whole mess.Comment
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I borrowed the money from my 401 (k). Had to file quickly.I gave my attorney the statement that had info on the loan. It didn't come up in my case. They did also have the copy of check where I paid the attorney.
( 401K loan---yeah, I know. Not the best solution, but there was a judgment and garnishment would have made a very bad situation worse.)Comment
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I think I need to clarify something, they gave us only a portion of it, the rest is from us....does that even make a difference? I don't know, I just really don't want to put my parents name on any kind of forms etc...Comment
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OK.
Paying for your attorney should be a reasonable expense. It is not like they gave you $2K and you frittered it away.
It comes out in the petition when it is filed, as mentioned above.
When I took out the 401k loan, the money was in the bank until paid my atty and they could see by looking at documentation provided with the petition. Again, no questions were raised.Comment
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The bankruptcy system in NO WAY cares where you got the money to pay your attorney...(so long as it was not on a credit card
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Good point!
When I was atty shopping, one actually told me that you couldn't pay with a cc for good reasons.
There is a national law firm chain that will let clients use the credit card of a friend or relative.Comment
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