Borrowing money from family

[CATCHMEIFYOUCAN]

Depending on where you file, you are allowed so much cash in your "savings." I'm filing in the state of Virginia. I hit the lottery for $2000 just before i filed, I used that money to pay the lawyer to file, nobody said anything (why would they, especially the lawyer - he's got his dough! A few days before my 341 meeting, I won another $1600, I did not put in in my account, I just kept the cash on me and spent it on the necessities (groceries, etc) and "non trackable," things.
I did tell my lawyer, and he said its not a problem! I would consult your lawyer.
In my opinion I don't see anything wrong in using the money for the neccessary things in life - especially shelter.
In my opinion I think the trustee will look at it like, well if your friends or relatives want to give you the money, than dont expect to pay them back. I think thats what they call "outside/inside lenders," (friends, relatives) because one of the questions on the BK is do you owe money to friends/relatives? If so list them. Then they send them a letter telling them, basically, your not getting paid, this person has filed Bankruptcy.

Someone correct me if I'm wrong

Best wishes, catchmeifyoucan

[lrprn]

What are the general guidelines to follow as far as borrowing money from family pre-bk? [edit]

My question is, will this large transfer of money look suspicious once I file? I'm hoping to file before Thanksgiving time. Is this loan considered a cash advance? If the money disappears from my account in no time from paying bills, will it even be looked at? I understand I want my bank account to be as low as possible when I file, but seeing as thats a ways off, it shouldn't be a problem.

Going by the letter of the law, if you receive this money gift this close to filing, if discovered it will be considered a part of your bankruptcy estate and give the trustee access to take it to distribute to your creditors. Is there any way you can wait to file longer than Thanksgiving?

As chmastal suggests, you could ask your family to give the money to your fiance and keep it out of your filing paperwork....however, do understand that is taking a risk because if it is discovered (unlikely but possible if the trustee looks at your finances back 90 days before filing and you have to answer how you paid off your deposits), that's fraud for sure, no matter how fast the money disappears from the account. You'll have to decide if that's worth the risk (albeit it's a very small risk).

Hang in there - keep us posted on how your bk journey is going. We're here to help if we can.

[chmastal]

herher putting the money down for the deposit doesn't look suspicious in the trustee's eyes because it was never in your bank account in the first place, and she is not the one filing!

I don't think this is deceitful, just make the things easier when filing. We all need to have shelter, & if family is willing to help provide that ultimate basic need, then that has nothing to do with your bankruptcy.

JMHO

[jbr12]

What are the general guidelines to follow as far as borrowing money from family pre-bk? I am in a sticky situation right now as we have to be out of our apartment by the end of the week and we don't have the money to pay for a security deposit and none of the landlords we've talk to will work something out.

I've talked to a couple of family members and they are going to be loaning me a large chunk of money to get into a new place and get a number of bills (fiance's, not mine) up to current. I'm filing and we'll be working with her credit, so we have to keep it in good standings.

My question is, will this large transfer of money look suspicious once I file? I'm hoping to file before Thanksgiving time. Is this loan considered a cash advance? If the money disappears from my account in no time from paying bills, will it even be looked at? I understand I want my bank account to be as low as possible when I file, but seeing as thats a ways off, it shouldn't be a problem.