what can I pay

[Riley]

Can anyone clarify if it will be a problem if I am paying my mom for credit cards that she has in her name for me? Payments are about $200 a month total between the 2 and I am currently making payments direclty to the credit card companies from my bank account. I have not filed yet but will be as soon as I get my tax return.

Since I have the extra money now (since I am not making payments to creditors) then should I just take out cash and write her money orders out now so that she can make payments for the next few months until the bk is over or would that not be "legal"?

If I was to take out cash now for $800 to cover 4 months of payments then would they question me on what that money was used for since I have not filed yet?

I dont want to do something that is wrong but also dont want to make my mom responsible for helping me out.

2nd question... Kind of extension of the first... Do I need to be keeping track of where all my money goes now or do I do that after I am ready to file? I usually use my debit card so it is all tracked but what if I take out a couple hundred here and there? Must I show receipts for that even though I have not filed yet. I am not talking a lot maybe just $100 here and there for when I take money out for me and my daughter to have cash when she wants to do something with her friends.

[StartingOver08]

Can anyone clarify if it will be a problem if I am paying my mom for credit cards that she has in her name for me? Payments are about $200 a month total between the 2 and I am currently making payments direclty to the credit card companies from my bank account. I have not filed yet but will be as soon as I get my tax return.

Ok, I am a little confused here...you are paying on credit cards that are NOT in your name; they are in your mothers' name? What exactly are your filing BK about? Do you have other debt in your name? You can not discharge debt on someone else's credit cards. So if you file the debt that is on your mothers' cards will remain there and she will be responsible for paying it.


Since I have the extra money now (since I am not making payments to creditors) then should I just take out cash and write her money orders out now so that she can make payments for the next few months until the bk is over or would that not be "legal"?

If I was to take out cash now for $800 to cover 4 months of payments then would they question me on what that money was used for since I have not filed yet?

If you give your mother $800 the trustee can ask her to pay it to the Trustee. There is a lookback period of one year and your mother is considered an insider. All payments $600 and more are looked at by the Trustee. You might want to download a petition to look at the questions that are asked to get an idea of how detailed you need to be in your disclosures.

I dont want to do something that is wrong but also dont want to make my mom responsible for helping me out.

2nd question... Kind of extension of the first... Do I need to be keeping track of where all my money goes now or do I do that after I am ready to file? I usually use my debit card so it is all tracked but what if I take out a couple hundred here and there? Must I show receipts for that even though I have not filed yet. I am not talking a lot maybe just $100 here and there for when I take money out for me and my daughter to have cash when she wants to do something with her friends.

As another poster has said in another thread: Receipts are your friend.

[Riley]

I know that the cards that are in her name will not be taken care of in my bk. I will plan on continueing to make payments for those after BK. I have my own debt on top of the cards in my moms name that is why I am filing for BK.

Is the $600 a total over the last 3 months or is it per transaction?

[StartingOver08]

For consumer debt, it is a $600 threshold within 90 days that makes the payment preferencial. If you make that payment to your relative, that is an insider payment. This is a better explanation here:



See this link: http://www.************************/...le-bankruptcy/

Also, I notice in this explanation that the Trustee only goes back one year, not two for insider payments. In the petition it asks about the aggregate value of payments greater than $600 made over the course of the past 90 days to be listed ...see this link, page 2 paragraph 3 relating to how the question is worded on the petition: http://www.uscourts.gov/rules/BK_For..._007_1207f.pdf

[AngelinaCatHub]

I know that the cards that are in her name will not be taken care of in my bk. I will plan on continueing to make payments for those after BK. I have my own debt on top of the cards in my moms name that is why I am filing for BK.

Is the $600 a total over the last 3 months or is it per transaction?

[Riley]

Thanks for the info starting over. I had read that.

Hub- so maybe if I just make payments like I have been- nothing excessive then they might just make me pay that amount back again? I am ok with that. I know that every case is different- I told the attorney that I spoke to about me making those payments and he did not say to stop. Maybe since it is just a small monthly $ amount then it isnt a big deal.

[AngelinaCatHub]

Thanks for the info starting over. I had read that.

Hub- so maybe if I just make payments like I have been- nothing excessive then they might just make me pay that amount back again? I am ok with that. I know that every case is different- I told the attorney that I spoke to about me making those payments and he did not say to stop. Maybe since it is just a small monthly $ amount then it isnt a big deal.

I agree with your attorney. You need not list those cards as they are not yours, and you can honestly explain what the payments are for and I believe you will be far ahead just to be straight up with the Trustee. I doubt he will have you penalized if you are honest with him. 'Hub

[Riley]

Tanks hub... I just realized you are the same person that I send private message to about another similar response. You can ignore that message as I see the answer is on here.

Thanks again.

[AngelinaCat]

Hi Riley: No, it was me you PM'd and I answered the specifics of our case there. I think you will be okay about paying $200.00 to your Mom each month. You will need to add her as a creditor. If you have an attorney, discuss this with him or her. In any event, even if this debt is discharged in the discharge order, there is a statement in the fine print that says that the debtor is perfectly free to continue making payments to a creditor after discharge, if that is what he or she wishes to do.

Good luck!

[Riley]

So AngelaCat and AngelaCatHub are 2 different people?? LOL Anyway you both gave me good info..Thanks to you both!

[AngelinaCat]

Yep, we are husband and wife. 'Hub couldn't think up a more original moniker.