I may be in trouble!

[Lolabeagle]

Hi all -

I may be in trouble with this and need some advice. I have been mulling over the bankruptcy route for almost 2 years now and still not have decided to file or not to file. I have been unemployed for a year and a half, and back in April decided to cash in my 401K. After penalties, I got around $13K. I needed to get my old car fixed, and pay my upcoming income taxes, all of that amounted over time to about $6,000. Anyway, I have no bank account and had the money direct deposited to my husbands account. Will I be in trouble for a fraudulent transfer? He would not be filing with me, all the debt is mine. I will need some of that money to pay the IRS again this year, and pay the attorney if I choose that route. I don't know if I should even file at this point, since my only income is unemployment and it is running out in 3 months. What is left over I wanted to keep because that is the only money I have, and once the unemployment runs out I will have nothing - except an old car. I am really scared and have not slept at all for 3 nights worrying.

[BrokeinMD]

Hi Lola - Ask your attorney of this at your consult. It appears you have gone past 6 months from when you deposited the money. My filing had to be pushed out because I received a bonus from my employer in March. Part of the paperwork for filing is bank statements and any income going back six months. Hope that helps!

[Lolabeagle]

My concern is that my property was transfered to his account, even though I used some of it. I had every intention of fully disclosing this, but the court will still think I am trying to commit fraud.

[BrokeinMD]

Speaking to an attorney will help to give you comfort on this, Lola. The paperwork for proof of income only gets tracked back for 6 months with your filing. Most BK attorneys give free consultations. The hardest part is making that phonecall, I know. Been there, done that! You'll feel alot better after making that phonecall and having that first conversation. I know I did!

[frogger]

I had every intention of fully disclosing this, but the court will still think I am trying to commit fraud.

If you are honest and fully disclose everything, then there is no fraud involved. Fraud involves lies and deceit.

Honesty will always prevail in all aspects of life.