Hi everyone. I have reseached this question here, and have found conflicting info. I have not yet asked an attorney either, and am still in the planning stages for filing Chapter 7 (no asset) for very large credit card debt (approx $125,000). I was self-employed last year, and didn't pay quarterly taxes, so I had a large tax bill to pay this year (approx $32,000 combined). Last December, I left my job to care for a sick parent full-time, and so for the last 10 months I've had no income. My parents want to pay the tax bills for me, knowing they can not be wiped out by the chapter 7. They would write the check directly to the IRS. I understand this would be a gift to me, and not be considered income, as long as they don't give it to me first (in the eyes of the trustee). I believe I would still have to disclose it to the trustee though, right? Also, my parents placed me on their credit card as an associate, so I have a card in my name, but the bill is in their name. I use it for food for all of us, med supplies, etc, although there are personal purchases on there as well. Will that be looked on as my debt if it's in their name? Any help would be greatly appreciated.
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The credit card you have is in your parents name and therefore they are liable for the debt. You can not file BK on that card, as you are technically not on that card, and are just a user.
As far as your parents paying your IRS debt, I don't believe that is considered income but certainly be upfront about it.
Your best bet however would be to get the opinion of a local BK attorney. Most offer the consultation at no charge. Even if you don't file, or use them to file, they can very well answer your questions.
Best of luck.8-07-09-filed Chapter 7
11-18-09-DISCHARGED!!
Life is not what challenges you face, but how you face those challenges.
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