Need some advice

[LadyInTheRed]

I didn't have to report any, but I guess it depends on the value and how you go about it.

A gift card is an asset. Regardless of the value or "how you go about it", it should be reported as an asset on your petition. I am sure many BK petitions get filed with gift cards left off. But, if a trustee were to suspect a debtor was hiding assets and started combing through bank statements and asked how the debtor spent $300 in cash that withdrawn and the answer was that they bought a Target gift card to use later, I guarantee that the next question would be "why isn't the gift card listed as an asset?"

[ksgirl38]

A gift card is an asset. Regardless of the value or "how you go about it", it should be reported as an asset on your petition. I am sure many BK petitions get filed with gift cards left off. But, if a trustee were to suspect a debtor was hiding assets and started coming through bank statements and asked how the debtor spent $300 in cash that withdrawn and the answer was that they bought a Target gift card to use later, I guarantee that the next question would be "why isn't the gift card listed as an asset?"

There wasn't a section to report it.

[LadyInTheRed]

There wasn't a section to report it.

Yes there was. Line 35 of Schedule B is for "Other personal property of any kind not already listed."

[kawh]

This is interesting, about the gift cards. I would not have thought to report the one $50 (now half that) gift card in my wallet.

My mindset about cash, though, changed almost right away after I had answered all the questions about how much I had, how much did I expect to have, etc etc. I began to feel oppressed about having any cash to my name. At that point I knew I would have to begin hoarding something "they" would not know about. Ha ha, now my little hoard is spent, but I still feel the need to re-build it, to have a little something put by that is not revealed to anyone, in case of a run on the banks or _____ (fill in blank as to the catastrophy). Guess it's my secretive nature, or is it just human nature, to want to keep a little freedom for oneself, from the prison guards? I fear having to account for even smaller amounts of cash taken from my account. Luckily, I discovered some stores do not break it down, what is merchandise and what is cash, from your debit card.

[LadyInTheRed]

It's one thing to have that card in your wallet and forget to list it on your petition. It's another thing to buy it with non exempt cash and intentionally not include it as an asset on your BK petition. The first is an honest error, the second is fraud.

[bcohen]

It's one thing to have that card in your wallet and forget to list it on your petition. It's another thing to buy it with non exempt cash and intentionally not include it as an asset on your BK petition. The first is an honest error, the second is fraud.

I am sure that in most states with paltry exemptions, people do stuff like this in order to survive. For example, here in AZ, you can exempt a whopping $150 in cash or bank accounts ($300 if you're married, filing jointly). So if a person fills out the petition honestly, lists every penny they own, and lets the trustee take all but $150, how are they supposed to eat, pay their rent, keep the lights on, etc? With hopes and dreams? And while it may technically be considered "fraud" to not list some small stockpile of money/liquid assets, how is that fair when people in some states can exempt thousands of dollars, and you can't even exempt a few hundred bucks (unless you hide them under your mattress and don't list it on your petition)?

[ValleYum]

So if a person fills out the petition honestly, lists every penny they own, and lets the trustee take all but $150, how are they supposed to eat, pay their rent, keep the lights on, etc? With hopes and dreams?

I would hope that people in this type of scenario would file the day before payday when their bank accounts would be at its lowest.

I would also hope that the attorneys who practice in states with little to no cash exemptions counsel their clients as to how best handle the financial restrictions their state places on bankruptcy debtors.

Since bankruptcy is a constitutional right, I personally believe that exemptions offered should be equal to debtors in all 50 states.

[LadyInTheRed]

I agree that exemptions in many states are unreasonable. I think Federal exemptions should be available in all states, but that the states should be allowed to offer the option of its own set of exemptions.

Weather we like the law or not, we don't advocate fraud here. It is against bkforum rules.

I would also hope that the attorneys who practice in states with little to no cash exemptions counsel their clients as to how best handle the financial restrictions their state places on bankruptcy debtors.

Me too. We pay our attorneys to advise us on these kinds of details and should make sure we get what we pay for.

[pamkev]

I agree if it's federal BK than all 50 states should allow the federal exemptions.

I also didn't know about gifts cards as assets don't have any and our lawyer never asked if we did.