Proof of Expenses

[kornellred]

One of my sons is filing for Chapter 7. He lives with me and pays me money for his share of the rent and automobile insurance. This has always been on a cash basis and there is no way that either of us can prove that he actually pays the money to me.

How do you suppose the trustee will view this situation? I know - it almost sounds like a rhetorical question, but I cannot imagine that he (my son) is the only one to find himself in such a situation.

By the way, I am in Chapter 13 myself and do not keep records of the money exchange. (I guess I said that already)

[justbroke]

How do you suppose the trustee will view this situation? I know - it almost sounds like a rhetorical question, but I cannot imagine that he (my son) is the only one to find himself in such a situation.

This is not a unique situation. It happens often. The Trustee usually doesn't ask for proof of rent. The only time this may occur is if they don't believe you. You could provide a copy of a lease or perhaps a signed letter, under penalty of perjury, of what the rent is.

I wouldn't worry about it, until it becomes a problem. Trustees understand that most everyone has some sort of housing expense!

As for automobile insurance... unless the car it titled in this name, that may be problematic.