Financial Assistance from parents = income?

[Aaaaah!]

Forgive me if this has been answered before, but my parents are helping me out trying to help me get back on my feet; do I have to count this money as income? It's not remunerative -- I'm not doing any work for my dad's business, for example -- and my only other income is unemployment insurance.

[keepmine]

If they're giving you money, it's income. If they're writing checks from there account and paying your bills, you don't have to include that as income.

[laurannm]

Is it a "gift" or a loan from your parents?

If it's a gift, than yes, it is income in most districts. If it is a loan, then you list your parents as creditors and it is not considered income

[Aaaaah!]

Thanks for the quick replies!

Thanks for clearing it up; I'm glad I asked. They've been giving me money to pay for things like school, etc. as a gift. Seems a little unfair to count something like that as income, but the rules are the rules and I don't want to mess anything up. Thanks again.

[AngelinaCatHub]

Is it a "gift" or a loan from your parents?

If it's a gift, than yes, it is income in most districts. If it is a loan, then you list your parents as creditors and it is not considered income

YES, Laurannm is correct if it is a loan. HOWEVER, DO NOT pay them back until your discharge. "Preferential insider". 'Hub

[laurannm]

YES, Laurannm is correct if it is a loan. HOWEVER, DO NOT pay them back until your discharge. "Preferential insider". 'Hub

Good point, Hub...I listed my parents as creditors and I was specifically asked about it at our 341

[keepmine]

This is likely a non issue. Just disclose the gifts-it likely won't put you over the median income or, affect your disposable income since you're using it to pay bills.

[Aaaaah!]

That's kind of the problem. If I count the money I'm getting from my parents along with unemployment, it *does* put me over the median, which is a joke since I don't have a job and basically don't have any assets.

BTW, found this for those who are interested. It seems to suggest that a one-time gift is *not* income but that a monthly gift (my situation) might be:

http://www.nolo.com/article.cfm/pg/2/objectId/424C3376-CE0E-4208-945368AE3F8AE6D0/catId/575C3BE9-F0C1-448E-B5F43D22FE36E9F2/213/161/176/ART/

[Niece]

My parents give me money month specifically to cover my bills only. I reported it as income and thus far it hasn't hurt me. My lawyer is confident my 341 is going to be smooth. I think just be as forthcoming as possible with the attorney and he'll advise you properly.

[Help!]

We were required to include as income all money we received from any source in the six month period prior to filing as income on the means test. Sometimes the rules aren't enforced by the case trustees, but if the UST becomes involved in a case... they are *strictly* enforced (along with rules you never knew existed).

If you decide their help is more of a "loan", you may want to consider writing up an informal note between you and them designating it as such. In the event you become an asset case, it allows them to file a claim with the same rights any other creditor would.