can a trustee find this and consider fraud?

[OutofTime]

My brother lives with me and has been giving me 500 a month to help with my mortgage but this last month I just cashed the check and didn't deposit in my bank. Will I get in trouble for fraud or something? I normally deposit in my bank but since I got my tax refund, I think I can just say to the trustee I don't need assistance since my refund got to me, if he asks of course. Is this a stupid idea and should I just deposit it?

[HHM]

Yes, it is fraud.

The real question, does it matter. Does putting that $500 into your income equation change anything in your case. If no, then why risk the fraud?

[MSbklawyer]

You are proposing to:

1) hide money from the trustee by cashing the check directly instead of depositing it into your account, and then

2) to commit perjury to cover up the fact that you've hidden the money by telling the trustee that due to your refund you don't need your brother's assistance anymore though you're still really getting it.

And you want to know if this is fraud?

Am I missing something or is that the most self-answered question that's ever been asked in the entire history of www.bkforum.com?

Is that really your question or is it whether you'll likely be caught?

[OutofTime]

Yes, it is fraud.

The real question, does it matter. Does putting that $500 into your income equation change anything in your case. If no, then why risk the fraud?

well my brother staying with me is not permanent and was only until he got his fiances in order but he gives me 600 including utilities. This is not going to be something I'll expect to get as soon as he moves out in june. I wanted to know if a trustee would be able to know if I cashed a check. Is that amount considered my income even if I don't claim my brother in my taxes?

[HHM]

Yes, it is income. But if it is not permanent, it doesn't matter.

It is always easier to explain the situation then it is to hide it. You have a good explanation so why hide it. It is no different than if someone withdraws from their IRA, some districts consider it "income" for purposes of BK, but at the same time, they are not blind to the fact that it is not going to continue.

[kornellred]

Ummmmm.....excuse me. I am 2 years into my 5 year Chapter 13. I am earning a lot more money than I was earning in 2007, the last 6 months of that year comprising the look-back period for determining income and DMI.
My trustee does not require copies of my income tax returns. There is no language in the confirmation document that states that I must report my financial status even if the trustee does not require it.
Are you going to tell me I am committing fraud?

[Flamingo]

Ummmmm.....excuse me. I am 2 years into my 5 year Chapter 13. I am earning a lot more money than I was earning in 2007, the last 6 months of that year comprising the look-back period for determining income and DMI.
My trustee does not require copies of my income tax returns. There is no language in the confirmation document that states that I must report my financial status even if the trustee does not require it.
Are you going to tell me I am committing fraud?

Have you reported your increase in income to your attorney (not trustee) which you are required to do. If you discussed with your attorney and your attorney has advised you otherwise, you should have no problem; remember, the trustee can request at any time during your Plan years your financial status. Your financial house is not under your control during those years. Yes, you could skate by but it would be in your best interest all around to fully discuss with your attorney especially if your income has risen "a lot." While in a 13 it is always better to report any increase or decrease in income or check with your attorney as to any specific percentage over your income at filing at which to report. It would not be good to be halfway through a 5 year Chapter 13 and get dismissed...