Pre chapter 7 income / means questions

[linznmatt]

My husband and I will be filing BK in March (have to wait til then because of a bonus we received in August). Our income is below the state median, but we got some money from his parents on November 1st (about $1200.00). Is that considered income? If so, that money will push us over the median income because we are right under it (within $500.00) with just his income alone.

Is there any way to not to have to include it in our current monthly income?

We will not pass the means test because we are including our cars in the BK (they are a big part of why we have to file) so we will not have them as deductions. We will have to file ch 13 if we aren't under the median.

How far back does the trustee look in your bank acct? Is there any way around this?

Also, we have a few other cash deposits $50-$400 for the six months prior to our file date. Do we have to include them as well?

Any help would be greatly appreciated.

Thank you !

[SinkingFast]

You really shouldn't have to tell about the deposits. The BK Court usually only sees your last 2 months of bank statements immediately prior to filing as part of your BK paperwork.

If, for some reason, the UST's office were to look deeper into your filing, and ask for more bank statements, you could always say the monies were gifts from the folks.

But if you want to err on the safe side, in case the UST's office were to happen to investigate further,.............. Sit the folks down, chat with them face to face. Say you'd like to call the monies they've given you recently loans. That you want to include those debts in your BK and list the folks as Creditors who will be discharged. It's not necessary but could avoid any problems if the UST's office were to happen to take a closer look at you.

[sofarindebt]

Can you list your parents as a debtor?

From what I have been reading, if you "borrowed" the money from them, it will not be included as income, but if they "gave" it to you, it will.

The drawback is if you "borrowed" it, or claim it as borrowed, they will be receiving a notice of bankruptcy in their mail, with them being a debtor.

[BassBoy]

From what I have been reading, if you "borrowed" the money from them, it will not be included as income, but if they "gave" it to you, it will.

The drawback is if you "borrowed" it, or claim it as borrowed, they will be receiving a notice of bankruptcy in their mail, with them being a debtor.

Yes....true. But linznmatt can voluntarily re-pay any listed debt after a Ch.7 discharge...so....she can sit down with her folks, as SF suggested, and simply tell them she will re-pay the debt, but in order to avoid any unforeseen problems, she needs to list the debt, if it's a loan.

[SinkingFast]

Yes....true. But linznmatt can voluntarily re-pay any listed debt after a Ch.7 discharge...so....she can sit down with her folks, as SF suggested, and simply tell them she will re-pay the debt, but in order to avoid any unforeseen problems, she needs to list the debt, if it's a loan.

Yep! There's no Law that says, "You cannot voluntarily repay any debt discharged in BK!!"

So when Linznmatt sit down with the folks and explain what's going on, they can say that, down the road, when they get back on their feet, they will repay the money.