Nothing happens to my parents correct??

[Gixermeup]

Im just making sure, that nothing happens to my parents if I file and since I currently live with them? I keep seeing household earnings for the median test...will they need to provide any tax documents?? Everything is there's, nothing in the house is mine besides clothing and computer/phone which obviously I'm going to list as assets...

[justbroke]

No. The only way that someone is directly affected by bankruptcy, is their social security number and name appearing on a bnakruptcy petition. They only time you need to provide income of another, is if you are married to someone.

[bornfree2]

Anyone in a bankruptcy can be subjected to a Rule 2004 examination. This is the creditors' or trustees power of deposition and interrogatories . It can be used to drag in anyone in your circle to find out more about your dealings with friends, family, etc.

https://www.nolo.com/legal-encyclope...ankruptcy.html

https://modestaslaw.com/faqs/what-is-a-rule-2004-examination-in-a-bankruptcy-case/

If you have access to a legal library you can look for the 'big black book' which details all the powers a creditor/trustee has. They have an incredible amount of power. See my thread here

(but dont lose sleep over it like I did....statistically it doesn't happen to the majority, but it is a legal power available to them. You will be okay ;)

[Gixermeup]

They can drag in anyone they want as long as they don't hold them responsible for MY debt. Nothing shady going on, I haven't received or loaned anything to family or friends for like 20 years....or transferred property, received etc.

Just trying to avoid an ass whooping...and a disowning of family.

[bornfree2]

Just trying to avoid an ass whooping...and a disowning of family.

Its you who is going to be doing the ass whooping on your creditors! The discharge is gonna knock them out.

[justbroke]

The likelihood of a Rule 2004 Examination is extremely low and is rarely used. If anything, it's mostly creditors that use this to get testimony under oath because the creditor is deciding whether or not to file an Adversary Processing (AP/Complaint) on dischargeability (of that specific debt).

This is why we hardly ever mention a Rule 2004 Exam. It's rare. So rare, they don't keep statistics on them. (They do happen. I'm not saying rare as in there are only a couple a year. It depends on the individual debtor and even then, they are rare.)

[despritfreya]

Im just making sure, that nothing happens to my parents if I file and since I currently live with them? I keep seeing household earnings for the median test...will they need to provide any tax documents?? Everything is there's, nothing in the house is mine besides clothing and computer/phone which obviously I'm going to list as assets...

I want to chime in here due to some posts that are rather inappropriate. Many people who file live with family members. That is just par for the course. Unless there is something going on other than you simply residing with your parents, your parents are not involved in your bk. They are not going to be called in to testify about anything.

Some issues to be aware of that you should discuss with your attorney are:

1. Do you pay fair rent? If not, does your district require you to include fair rent as "phantom income" for means testing purposes?

2. Do your parents pay your living expenses (food, clothing, insurance, etc.)? If they do, the amounts paid are reported on line 4 of the income calculation as "regular contribution to the household expenses".

3. Do you commingle your money with your parents'? If yes, then there is a problem.

4. Other than rent, have you been paying back your parents for their support? If yes, then there is a problem.

So, my recommendation is to discuss the specifics with a local attorney and go from there.

Des.

[BKKimOK]

My mothers name is on my bank account, although my names not on hers and we do not share funds. I have a family cell phone plan, as well as rent and insurance that I pay my mother monthly and usually I would just make transfer from my account to hers monthly for those bills. The trustee asked to see copies of her bank statements for some reason, I’m assuming due to this.

[Carmella]

My mothers name is on my bank account, although my names not on hers and we do not share funds. I have a family cell phone plan, as well as rent and insurance that I pay my mother monthly and usually I would just make transfer from my account to hers monthly for those bills. The trustee asked to see copies of her bank statements for some reason, I’m assuming due to this.

Maybe they want to verify your story that you are in fact paying your mother.

I had been on my daughter's account before our BK 13 and then removed myself from her account which is different from your situation since it's your account.