Under the Microscope

[relieef]

I am in the process of finishing my BK-7 paper work and have stated I receive gift money from my girl friend (we not live together) for the last 3-years as I have been unemployed and on state assistance ( food stamps and heating assist) .

My question , Will she be under the same microscope as I, EX: having to show her IRS taxes, Employment, her personal expenses etc etc she is under the impression she will be inundated with tons of paper work and all the other hassle (she has nothing to conceal). Thanks for your thoughts.

[justbroke]

No, she will not be. She is not a party to the bankruptcy unless you paid her back more than $600 in the last year or so. In fact, you don't even need to put her name on the bankruptcy paperwork unless you "owe" her money. You'd list the "gift" income under "Other income" and put a description of "recurring cash gifts". If the Trustee asks from whom they come, just tell the Trustee a friend.

Trust me... the Trustee will be more relaxed that you disclosed a recurring gift since most people don't even think about it as income. However, recurring (regular) cash gifts, or bill payments from others, is income under the bankruptcy code.

[relieef]

"However, recurring (regular) cash gifts, or bill payments from others, is income under the bankruptcy code. "
Can you elaborate on the above. The gift money is used for my bills Rent, Electric.

And yes I listed the "gift" income under "Other income and Also Under Schedule I Line #13 as other monthly income.

Thanks so much .

[relieef]

"And yes I listed the "gift" income under "Other income and Also Under Schedule I Line #13 as other monthly income."

correction on above should have read." And yes I listed the "gift" income under Under Schedule I Line #13 as other monthly income".
and also listed under MEANS TEST (Income from all other sources Part V. line 10 CALCULATION OF DEDUCTIONS FROM INCOME)

[justbroke]

"However, recurring (regular) cash gifts, or bill payments from others, is income under the bankruptcy code. "

No need to elaborate since you already listed it as "other" income. Some debtors have a difficult time understanding why a "recurring" gift -- whether it's cash or not -- is "income" under the Bankruptcy code.

[relieef]

No need to elaborate since you already listed it as "other" income. Some debtors have a difficult time understanding why a "recurring" gift -- whether it's cash or not -- is "income" under the Bankruptcy code.

I searched regarding cash gift and From what I have read regarding gift moneys "a individual is allowed to receive minimum of $1200.00 in any given year ( Non Taxable) as long as the given party does not request a 109? form filed". I am wrong? SO when I file my last 3-Yrs. Taxes (Trustee will expect)I need to declare that $$$$$$ Thanks Again

[justbroke]

You are mixing taxes and taxation with bankruptcy. If you read 11 USC 101 under the definition for "current monthly income", you'll quickly note that it doesn't care whether the amount is taxed or not!

11 USC 101

(10A) The term "current monthly income"--

(A) means the average monthly income from all sources that the debtor receives (or in a joint case the debtor and the debtor's spouse receive) without regard to whether such income is taxable income, derived during the 6-month period ending on--

[relieef]

I understand now. Thank you Justbroke .