Can they touch money that family gives to support you?

[sirius]

... the UST will become every interested in that income... if it's still sitting in an account.

Do you mean even if the account isn't in my name?

[backtoschool]

The reason I never jumped into this thread, was because it never reaches your hands. It is used for housing/living expenses and it may not even be, technically, income as per the definition in the Bankruptcy Code.

My reason for posting is to distinguish taxable income versus what Bankruptcy considers income. The Bankruptcy Code makes no distinction. As written above, the Trustee may take a "gift" explanation, but rest assured, if that amount is significant... the UST will become every interested in that income... if it's still sitting in an account.

Yes I totally agree. Every time I got a "gift" check, I could show receipts for a necessary expense it was spent on.

[backtoschool]

Do you mean even if the account isn't in my name?

Since your family is directly paying your bills from an account not in your name, I don't think that your situation is a problem. I don't think the money will be counted as income.

[bkmaggster]

Do you mean even if the account isn't in my name?

No, the trustee cannot touch money in a family member's account, unless it was the result of preferential loan payments you made to them. Which it isn't, so they can't touch it.

[justbroke]

Do you mean even if the account isn't in my name?

If it's not in your name, then it's not your money. However, the Trustee will ask, at your 341 Meeting, if anyone else is holding on to property for you. I would err on the side of caution and make sure that account has very little money in it on the day of your 341 Meeting. This is actually a standard practice anyhow.

[bkmaggster]

If it's not in your name, then it's not your money. However, the Trustee will ask, at your 341 Meeting, if anyone else is holding on to property for you. I would err on the side of caution and make sure that account has very little money in it on the day of your 341 Meeting. This is actually a standard practice anyhow.

How is his brother's money in his parent's checking account his property? I don't get it.

[AngelinaCatHub]

How is his brother's money in his parent's checking account his property? I don't get it.

Because you have to have some viable way of support. Just to be safe, keep the account low as if you get an AH who may consider you hiding funds. Just not to have that bother over your head. That is all. In all, I believe everyone here agrees, you have not real problem so have a cold one and relax. 'Hub

[justbroke]

How is his brother's money in his parent's checking account his property? I don't get it.

It's going to go down like this (remember, this is just theoretical, but I'm confident that this sort of questioning will occur):

Trustee: you list no income, where do you get your support?
Debtor: Well, my family pays my bills.
Trustee: how do they do that?
Debtor: Well, my brother gives me money by depositing money into another family member's account so that they can pay my bills.
Trustee: Interesting. How much money is in that account?
Debtor: $XXX
Trustee: Why did you not list that as income?
Debtor: Because it never touches my hands... and...
Trustee (interrupting): But it's paid to your benefit, right?
Debtor: Yes.
Trustee: I'm going to continue this 341 Meeting in order to dig further into this matter.

Of course, this may turn into nothing and the Trustee just says "okay" and doesn't want to inquire any further. I just pasted a scenario in which you could be dragged into a line of questioning that may raise questions, based on other facts included in your schedules.

In the end, I don't think it will go this way of inquiry, but you should have a really good (truthful) story on the account and how you are surviving. You never mentioned who you live with?

[2manybills]

JB I agree. As my attorney always told me: "Prepare for the worst and hope for the best"!
It paid off in the end.

[adviceplease]

Hmmm....we have recieved some money from family over the last 6 months. We also have recieved money for birthdays and other holidays through checks. Should I make a list of which is paid for us to use as an income and the ones that were gifts for holidays?

[justbroke]

Hmmm....we have recieved some money from family over the last 6 months. We also have recieved money for birthdays and other holidays through checks. Should I make a list of which is paid for us to use as an income and the ones that were gifts for holidays?

Birthday and holiday money is insignificant. You also spent it, so it's of no concern, really, unless you paid it back to them. The Trustee is looking for actual money in a bank somewhere (that is not exempt) or that you paid insiders (family) or paid a creditor as a preferred creditor.

[adviceplease]

I wish I still had all the money. It is probably about $600 in gifts over the last 6 months for holidays and birthdays, and maybe $2000 from my MIL and $800 from my mom (just sent to catch up mortgage). We have used most of this to pay the credit card payments up until this month. A lot of the time it is gas money from my MIL because she does not drive and I take her a lot of places so about $100 a month was for her transportation and money to buy my daughter things.

I do not plan to pay any of the money back it was a gift to get us caught up enough to even pay a lawyer to do the BK. Both parents are not going to give us money after this month because they do not have any extra.

[CCsAreEvil]

Well, I'm in a similar situation. I've asked my attorney twice about this, but he just said it's not an issue. He kept saying it's just a gift.

Basically, I just mail my parents my mortgage payment, and they send the check directly to the mortgage company. The money never gets into my "hands" (no bank deposit into my account).

I really hope my attorney knows what he is doing.

[sirius]

In the end, I don't think it will go this way of inquiry, but you should have a really good (truthful) story on the account and how you are surviving. You never mentioned who you live with?

I live with a parent.

Also, I guess I'm wondering what to do if I get to the point that I stop paying my cards. I'll still be getting that money. It's only 600 a month. I guess I would just cash the checks at that point and never put them in any account. If I do that, I'd like to be able to save the money so I can have something to live off of as my future is uncertain and I may have to move out, etc...

Would this money be easy to keep or am I going to have to say I have it? How would they ever know what cash you have?

If that's going to be a problem I guess if I stop making payments and plan for a BK I could have my brother stop helping me until the BK is over? I wouldn't want to waste his money.

[OhioFiler]

I don't understand why the OP is even considering filing bankruptcy if he has no income and no assets.

Justbroke is dead on. The trustee is likely to ask where the money has been coming from to pay his bills. His schedules become suspect at that point.