Borrowing money from family

[possumfat]

Just my two cents but if you use the money for shelter and can provide proof of the transaction I believe the trustee would not have a problem with it plus the amount is to small for the trustee to bother with from my experience.

[quietsound]

heck this person needed a place to live and pay bills and had no money to do so, as long as your honest with the trustee WHEN it comes up, what is the big deal, you have to have a place to live! If you borrowed the money to take a trip or a cruise.............YES i could see where the trustee would be angry

[SinkingFast]

Sorry to hear about this, JB!! Gee!! Great notice!! A WHOLE 2 days!!

Just as a precaution, maybe check and see if you have any of those "Monthly Motels" around. Or "Family Motels" that charge low fees on weekly rentals.

I remember when we were looking, it was slim at the start. We kept driving by this one hotel with the Weekly/Monthly rate sign up. I kept wondering if we'd be living there for a while. I didn't rule it out as a back up.

Also, know where you can store your things temporarily. The local storage facilites here don't require any move-in or move-out notice. AND, they give "Student" discounts as well.

If it looks like you're headed in that direction, rent a PO Box at the Post Office. Then you have a forwarding address to give out and a constant place to get your mail until you land somewhere.

Just some CYA suggestions if you get in a real bind.

[jbr12]

Ok, so I'm about to go crazy. The apartment complex that approved me as of earlier today, suddenly pulled my approval because were under the impression I had already filed bk, and now they realize I am filing in the future and say I can not move in We have to be out of my current apartment on Saturday and now we have no where to go

[SinkingFast]

The goal is to do everything so your case looks straightforeward and simple. Not stick out red flags everywhere and ask to be scrutinized further.

r

MEGA DITTO'S to this statement!!

It's not that what you did WAS wrong. It's the appearance what you did has to an outsider, the Trustee, looking back on what happened.

[BassBoy]

Yes it does have to be listed as a debt. If the money just popped up in your bank account then it's income and will be part of the means test calculation and part of the estate if it's still there the day you file.

If you explain that it's just a loan then it won't count as income, but the family member that made the loan has to be listed as a creditor. If you knowingly don't list this the way it should it won't look very good for you. You may want to wait if you can.

You don't need to reaffirm this. You can just pay it back after your case is closed. You can payback any creditor you want after your case is closed.

I concurr with FOMO. You'd be better off listing the debt, and you can pay it back after your discharge.

I wouldn't do anything that would cause a red flag to be raised. It's better to be 100% honest, rather than run the risk of your case getting dismissed.

On the other hand, and IMO, it's kinda awkward to file BK on a family member or friend, but again, family and friends won't turn their back on you and if you explain that you'll repay it, then there should be no cause for hard feelings.

[razorguns]

Like I just said, the money has already been borrowed... and yes, I was in a situation where I desperately need the money to put a security deposit on a new apartment... we had to be out of our current apartment by the end of this week... it was kind of a dire circumstance.

that's fine. Just don't complain when the Trustee then puts you in his radar, and concentrates on your case for the rest of the afternoon.

The goal is to do everything so your case looks straightforeward and simple. Not stick out red flags everywhere and ask to be scrutinized further. That's what gives Trustee's job security.

r

[FoolAndHisMoney]

While this money is 'borrowed' money from my family, there will be no written payback agreement. Does it still have to be listed on my bk creditors list? If we do write up an agreement, is that something that could be 'reaffirmed' in my bk case? I mean, even if I did file and included them in my file, after bk, I would still make every effort to pay them back, dispite the 'discharge'.... is that something that would cause problemsw?

Yes it does have to be listed as a debt. If the money just popped up in your bank account then it's income and will be part of the means test calculation and part of the estate if it's still there the day you file.

If you explain that it's just a loan then it won't count as income, but the family member that made the loan has to be listed as a creditor. If you knowingly don't list this the way it should it won't look very good for you. You may want to wait if you can.

You don't need to reaffirm this. You can just pay it back after your case is closed. You can payback any creditor you want after your case is closed.

[jbr12]

I'll just keep very good receipts from now until I file... that way if theres any questions, I'll atleast be able to cover myself. One thing the atty yesterday mentioned is I was going to include day care on my expenses, but I don't technically have a child... She's my fiance's, even though I pay child care. He said all that would do is stir up the pot and get him looking closer at everything.

[CATCHMEIFYOUCAN]

Just my opinion, I think the biggest question that the Trustee will want to know is what did you do with the money, and if you can prove that you used to get a new apt, etc and prove it, it might suffice. After all the money is already spent. I would think he would understand a person(s) needs shelter!

Catchmeifyoucan

[jbr12]

Like I just said, the money has already been borrowed... and yes, I was in a situation where I desperately need the money to put a security deposit on a new apartment... we had to be out of our current apartment by the end of this week... it was kind of a dire circumstance.

[razorguns]

borrow the money after the 341. won't kill you.

r

[jbr12]

Well, problem is we have a joint account and the monies were already transferred to my account as of this morning. I had a free consult today and the lawyer told me as long as I don't PAY a large chunk to any family, receiving the money wouldn't be an issue. He said worst case scenario, the money has to be added to my avg monthly income for the means test... He said as long as we use the money to pay bills and its not just sittinig in the account (ie, the account being as close to zero as possible on the filing date) then we would be fine... Does this sound right to others out there?

While this money is 'borrowed' money from my family, there will be no written payback agreement. Does it still have to be listed on my bk creditors list? If we do write up an agreement, is that something that could be 'reaffirmed' in my bk case? I mean, even if I did file and included them in my file, after bk, I would still make every effort to pay them back, dispite the 'discharge'.... is that something that would cause problemsw?

[SinkingFast]

The Trustee could very well look at your bank statements and say, "Where did this large deposit come from?"

You're best off to have the family pay thru your fiance's acct or pay the bills direct themselves rather than run the money thru your bank acct.

[razorguns]

if it's 'borrow', it's a 'debt' and you have to disclose that to the trustee. If it's a luxury item or obtained with the intent to remove it via bk - it could cancel your bk or at least force the trustee to look at your app like a hawk.

Best to stay out of the radar and just have the family pay off some of your bills. Avoid cash.

r