Red Flags

[Gidgetsbroke]

OK so my husband and I had our first meeting with our attorney today and everything went well until he asked for our last 3 months of bank statements. We have no paper trail whatsoever as far as rent and utilities go. It just looks like a huge amount of gas station trips, walmart and target trips, etc. We do not use checks and we rent a mobile home that my husband's grandma owns. We pay her the rent and utility money because the utilities are in her name as well. We have old huge utility bills that we were unable to pay so she got the utilities in her name. She does not always expect us to pay the whole bill so the amounts each month vary greatly and the thing is we pretty much give her rent/utility money here and there throughout the month.

Another thing is...to save myself a trip to the bank...I always just use the cash back option at my weekly trip to walmart and target every Friday...that is the money I use to give her some rent/utility money (usually about 100-125 a week). How will this affect our filing? Will they say it's all bogus because we have no proof that we pay rent and utilities at all? Will they have a problem with the fact that we rent through a relative?

I am not sure what to do and am really scared now...we are so broke but you couldn't tell through our statements. We are paying bills but it does not look like it on paper. It looks like we have a ton of disposable income. We really don't have a choice but to file right away though because we have some garnishment orders coming through so it is not an option to wait 3-6 months just so we can provide the paper trail they want.

[ready2puke]

Can you ask Granny for that in writing? Like having a receipt from her. I would think that would work. You may have to have her break it down, sign it and maybe have it noterized...

[epiphany]

Okay, so what did the lawyer say when you told him that your bank statements were not going to show the money that you were paying for rent and utilities? Or did you tell him that? It sounds like you haven't because of the question you are asking.

If you didn't tell him, I would advise you to do so ASAP. Please realize that your lawyer is there to help you--that's what you're paying him for and he knows it-- so keeping something from him is not in your best interest. He's heard it all and knows how to deal with things like this.

Not trying to sound harsh. If you did already tell him, then you have left out an important piece (his reaction) which could change the context of your post. But if you didn't please know that it's actually easier to be truthful to your lawyer than you might think. He works for you.

ep

[InDebtNeedHelp]

The person you are renting from can give you receipts for the last six months. Sit down with her and honestly write down how much you paid her and when. These receipts will be MUCH better than nothing. Start documenting!

[jktrading]

Just get as many receipts as possible and tell the truth. No one can prove fraud if there isn't any. There is truly nothing to be afraid of if you are not hiding anything.

[TEW]

OK so my husband and I had our first meeting with our attorney today and everything went well until he asked for our last 3 months of bank statements. We have no paper trail whatsoever as far as rent and utilities go. It just looks like a huge amount of gas station trips, walmart and target trips, etc. We do not use checks and we rent a mobile home that my husband's grandma owns. We pay her the rent and utility money because the utilities are in her name as well. We have old huge utility bills that we were unable to pay so she got the utilities in her name. She does not always expect us to pay the whole bill so the amounts each month vary greatly and the thing is we pretty much give her rent/utility money here and there throughout the month.

Another thing is...to save myself a trip to the bank...I always just use the cash back option at my weekly trip to walmart and target every Friday...that is the money I use to give her some rent/utility money (usually about 100-125 a week). How will this affect our filing? Will they say it's all bogus because we have no proof that we pay rent and utilities at all? Will they have a problem with the fact that we rent through a relative?

I am not sure what to do and am really scared now...we are so broke but you couldn't tell through our statements. We are paying bills but it does not look like it on paper. It looks like we have a ton of disposable income. We really don't have a choice but to file right away though because we have some garnishment orders coming through so it is not an option to wait 3-6 months just so we can provide the paper trail they want.

Sounds like a really good chapter 13 case income depending how much you make and no expenses. Make sure you include granny as a creditor.

[Intoodeep80]

Ive been doing the same thing (paying cash) under my lawyers recommendations, as creditors can freeze your bank accounts to get the money you owe them, so my lawyer doesnt want me keeping ANY money in my checking account. I debit a few things, like car payment that is necessary for my bk, and cell phone bill, and some gas here and there. I put just enough money in the bank for those items to clear and I dont have any more than $3-$5 in the account.

Ive asked my lawyer 2-3x about this and they said its a non-issue. I asked if I should save receipts and they told me not to worry about it.