Support from Family after Filing

[oscar]

Greetings, all:

First-this site has been a godsend-thank you all for the info you've posted.
We will be filing within the week, and not long after that, we will be short of income to pay essentials, like rent, utilities, etc. until one of us gets a job.
Family members are offering to help financially for those basic needs, but I am hearing here that this could be a problem. Can anyone help clarify this for me? If family can help, and we clearly need it to avoid living on the streets, how can that be looked at negatively by the bankruptcy process?
We are in South Florida. Any insight anyone can provide will be greatly appreciated.

[AngelinaCat]

Once you file, you shouldn't have a problem. The look-back period is six months from the date you file your paperwork with the court, and get your case number. If you had borrowed money from a relative and paid it back in amounts larger than $600 dollars, or made small payments that added up to that amount, it would be considered an 'Insider Payment'. If you paid the relative--or any one creditor--and did not make payments to the other creditors you owe, then that is a 'Preferrential Payment'.

As I said, the look-back period is usually six months, but if one of these show up in your paperwork, then the trustee can look back a year or more.

Anything, such as loans, or purchases, AFTER the date you file, is considered 'new debt' and is not counted in your bankruptcy.

Good luck to you and welcome to the forum.

[ccsjoe]

Hi oscar, welcome to the forum. AngelinaCat is right. Let me add that if you receive the money from a family member prior to filing it may be considered a gift or income for means test purposes. You want to make sure you file first, then get the help.