How to report help from family?

[ameliabedilia]

My inlaws have been depositing $400 a month in our checking account to make our car payment until we get on our feet. It is an electronic transfer and state "auto payment" on it. This started in May of this year. In April they also deposited $2000 in our account to help us out as well.
My question is how do I report this? Is it considered income when totalling my income for the last 6 months?
Thanks in advance!

[familyof7]

gift money. Or you could say it is for work you do for them and report it as income.

[BKOnce]

More safe ways are:

1. Cash

2. Their money order$/check... printed/issued/named/mailed to car lender/bank.

[familyof7]

More safe ways are:

1. Cash

2. Their money order$ named to car lender/bank.

I agree

[ameliabedilia]

Thanks for the info. What I am really concerned about is the money that is already deposited in the account. We are going to talk to them and have them start sending checks so I will not have the issue in the future.
Can you tell me more about the gift money? Is it still included in my calculations for the median income test?
Thanks in advance-
Amelia

[JRScott]

There's a line in the financial statement about gifts. You would list it there.

Let me ask a question, are you expected to pay this back?

If so they are a creditor and have to be listed on the creditors matrix along with your other debts.

I agree with the others you need to go to another system that is safer. However if you are badly in the negative the trustee will see them as helping you. He will probably ask if the help is a loan or a gift. Since he'll likely see the bank statements it'll be easy to explain where the money goes I think. Still better to get them to give you money orders or checks made out to the creditor.

[ameliabedilia]

Yes, we are definitely going to have them just start sending money orders or probably sending check directly.
It is not a loan, they are nice people and are helping us out until we get back on our feet.

So I am correct in adding it to the financial statement, but NOT adding it to our income average over the next 6 months??

Since our take home income from unemployment right now is $2150, and our rent is $1550, we are definitely in the negative for even spending on food alone for a family of four.

Also, do they need proof that it is not a loan? I could have them write something that they are just helping out.

I appreciate everything here. We saw one lawyer who really rushed us so I am trying to have as much understanding of all this when we consult with another. I would really like to do pro se, as lawyers around here are pretty expensive, but we will do what's best for our case.

[JRScott]

Do you plan to reaffirm any debts?

The problem with listing it as income is a bankruptcy is public record. The IRS could start coming to look for their money.

However if you plan to reaffirm a car or house if you are showing a lot of negative income without the gifts then you might need to list it as income to get the creditors to reaffirm. (or the court).

You might ask this question in a free consultation with another BK attorney in your area and see what his take on it is.

[ameliabedilia]

Thanks I will definitely put that on my growing list of questions.
I will now hypothetically count it as a gift, and wait and see.
You are very helpful- Thanks! I asked a few more questions last night and didn't get much of a response, if you have time and have any input I would love it if you could go over that post.
By the way, I lived in North Carolina last year. I really miss the East Coast!

[SinkingFast]

Just have your parents pay the car loan direct themselves. Or have them purchase a Money Order for the car payment that you can mail in. The Lender doesn't car where the money comes from. Just that they get paid.

That way, you're not left to explain all these "mysterious" deposits of cash into your bank acct every month.

[ameliabedilia]

Thanks, that is what we are doing. It is a lease so we don't to reaffirm it, we just want to keep leasing it. I don't know if that makes a difference as far as our negative income is concerned.
Do you know?