Gifted Money

[mycreditisbad]

Our Chapter 7 BK is scheduled for discharge on 12/29. If we were to get money for a Christmas gift, would this effect us at all? I am thinking that the amount would be around $1,000 or a little more...

Thanks!

[HHM]

No, the money was received after you filed. You won't need to disclose it.

[relief13035]

What about a gift of a vehicle after filing?

[journey]

Ok what if my parents was to give me some money to get my life going again after the discharge would the Court come after it.


Thanks

[HHM]

A gift of a car, a gift of money after the BK is discharged is a non-issue. Discharge ends your BK. The 180 day provision you may have heard about ONLY applies if someone DIES and leaves you something. (there is no windfall provision, per se).

[Beeheery]

A gift of a car, a gift of money after the BK is discharged is a non-issue. Discharge ends your BK. The 180 day provision you may have heard about ONLY applies if someone DIES and leaves you something. (there is no windfall provision, per se).

Hi HHM,
But could the gifted car be transferred into our name or must in stay in someone else's even though it would technically be ours? Like could someone get a brand new Hummer that is like 70K the day after discharge from someone else and have the titled transferred to them? Thanks!

[HHM]

Hi HHM,
But could the gifted car be transferred into our name or must in stay in someone else's even though it would technically be ours? Like could someone get a brand new Hummer that is like 70K the day after discharge from someone else and have the titled transferred to them? Thanks!

Yes. The title can be in your names, and yes, you could get a gift of a 70K Hummer the day after discharge and there is nothing the Trustee can do about it.

(one caveat: if this is something you knew was going to happen, the amount is large enough, and given the "totality" of circumstances of your case, the trustee, if he even found out about it (which is highly unlikely), could make a motion to withdraw the discharge if the situation looked overtly fraudulent, BUT, that would be rare. Assets you receive after BK diacharge, are yours and not part of the BK estate, there are only limited exceptions)

[Beeheery]

Yes. The title can be in your names, and yes, you could get a gift of a 70K Hummer the day after discharge and there is nothing the Trustee can do about it.

(one caveat: if this is something you knew was going to happen, the amount is large enough, and given the "totality" of circumstances of your case, the trustee, if he even found out about it (which is highly unlikely), could make a motion to withdraw the discharge if the situation looked overtly fraudulent, BUT, that would be rare. Assets you receive after BK, are yours and not part of the BK estate, there are only limited exceptions)

Great. Thank you SOOOO MUCH! I really appreciate it.

[journey]

So after the Discharge if i recieve a used Couch and some other funiture the Court cant come and get it. right?

[journey]

Ok so if after the Discharge you have a freind or releative give you some furniture or money or a vehicle or some clothing or a t.v. you can keep it and the court will not come after the gifts. right?

[journey]

And if your able to keep the gifts waht is the diffrence between a gift or a inhertance just wondering. or a lottery winning.

[HHM]

We can run through every scenario if you want .

As for inheritence, the reason it is an issue is because the BK law specifically includes it in the BK estate even if it is received 180 days after discharge.

General rule: Anything, and I mean, ANYTHING (including lottery winnings) is YOURS if you receive it, and/or your right to recieve it arises, after discharge UNLESS the BK code specifically says otherwise. The ONLY EXCEPTION to this rule is the 180 day rule for inheritence and life insurance proceeds...meaning, if someone dies and leaves you something, and if that person died, before, during, or 180 days after your discharge, the trustee is entitled to whatever that person left you. Otherwise, whatever you recieve after discharge is yours and there is nothing the trustee can do about it.

I am not sure I can say it any more plainly than that

As for why, you need to ask congress

[journey]

HHM.. Thank you for your help. Sorry that i asked so much times.

again thanks for your help as well.

[Beeheery]

haha. Poor HHM....

[relief13035]

Thank you so much HHM. I don't want to come across as sneaky, but I want to protect this gift at the same time. My father is in his 70's and it would break his heart if he gave me a gift and it was taken away. He doesn't know we are filing BK, so the timing of this gift made me a little nervous.

Thanks for your post - I feel much better.