When Mom and Dad Pay for the Bankruptcy

[Optimistic09]

This "good news" post on when someone else pays for your bankruptcy made me wonder how should that be done if it is a gift.

http://www.bkforum.com/showthread.php?t=41993

Should the person paying for the bankruptcy pay the attorney directly? How do you avoid the issue of it being a gift and not a loan that would need to be included in the bankruptcy?

[last2cents]

Optimistic - they're sending the check directly to my attorney - so my hands are not involved at all.

He said that was a perfectly acceptable way to do it.

Parents have also insisted that they do not expect to be paid back (and are willing to swear to it. )

[justbroke]

As written, I would have them pay directly and also provide a letter to the attorney indicating that it is not a gift and that they do not expect, require, or anticipate repayment as it is not a loan.

[GeG_Lost]

I had $14,000 in case gifts from my mom when I filed and it was all money that was deposited directly into my account. I just had to put somewhere on my forms that I had received that money as a gift and nothing was ever said about it. Mind you, it brought us close to the median but didn't take us over because we have a large family. I am not recommending you go that route and have the money paid directly to you. I am just sharing my personal experience.