Accepting a loan from family during BK7???

[LDL]

So I'm within a month of being discharged from Chapter 7 (no assets) and I'm needing some financial help . At first I thought that maybe I couldn't accept any monies from family or friends until after the 180 day period (~ Feb 2010), but now I'm wondering if it would really be an issue as a loan???

Basically, I'm needing a car and money to move, so a family member will be loaning me ~ $10K until I can get back on my feet. Before I ask my lawyer, I thought I would ask here first ! The only issue I can think of is my state's car exemption is $5K and I didn't use it (at all) when filing, so just don't exceed that amount when I buy a used vehicle.

[StartingOver08]

You are ok to accept a loan from family or anyone else after your discharge. The 180 days that you reference is for an inheritance within 180 days of discharge, not a family loan.

As you can imagine there are problems with the BK filing if you get a loan from family BEFORE you file, but afterward is fine. Good luck with your fresh start!

[LDL]

Thank you for your reply StartingOver08!

Two more questions. Does it matter if it's a 'loan' or a 'gift' from my family member after discharge? I'm wondering what I need to have in place to prove it's a loan if questioned? Just have the family member write 'loan' on the check?

I was thinking that my bank might say "HEY!!! This person is in BK (or just got out of BK) and they just placed a check for $10K in their account" and then notify the Trustee or something .

I want to be safe and not raise any RED flags. My family member will wait on me to get some more income coming in before expecting me to start repaying. Thank you Jesus for family!!!

[DebtEnder]

If you were not "expecting" this possible "gift" before you filed then it has 0 relevance to your prior BK estate. I personally don't understand anyways why if someone dies 5-6 months after your DISCHARGED you have to worry about giving that all up. But that's just my thoughts.

In general after your case is discharged and closed no one is going to be looking over your shoulder. If you don't have any real aggressive creditors, like vindictive family, former friends, or business partners you won't have any birdies on the TT shoulders whispering stuff. Not that anything they would tell the TT would matter but yea....

[StartingOver08]

As DebtEnder points out...no one looks over your shoulder once you are discharged. Its ok if its a loan or a gift - structure it the way both you and your relative are comfortable.

[LDL]

Actually, I was just offered the money this week (for the first time), but I told them "no", I didn't think that I could accept any money in my current situation. But after thinking about it and the 180 day rule and what's excluded, I thought that maybe I could get a loan for $10K from family.

I guess you folks on here just scared me with all the talk about Wells Fargo freezing people's bank accounts and since I bank with them I thought that I'd better think twice before taking a loan and then risk having my bank rat me out or something and take the money somehow .

Alrighty then, I sure hope that my family member doesn't change their mind or get hit with some unexpected bills before they send me a check next month .

Thank you for all your replies!

If you were not "expecting" this possible "gift" before you filed then it has 0 relevance to your prior BK estate. I personally don't understand anyways why if someone dies 5-6 months after your DISCHARGED you have to worry about giving that all up. But that's just my thoughts.

In general after your case is discharged and closed no one is going to be looking over your shoulder. If you don't have any real aggressive creditors, like vindictive family, former friends, or business partners you won't have any birdies on the TT shoulders whispering stuff. Not that anything they would tell the TT would matter but yea....

[AngelinaCatHub]

Two more questions. Does it matter if it's a 'loan' or a 'gift' from my family member after discharge? I'm wondering what I need to have in place to prove it's a loan if questioned? Just have the family member write 'loan' on the check?

I was thinking that my bank might say "HEY!!! This person is in BK (or just got out of BK) and they just placed a check for $10K in their account" and then notify the Trustee or something .

I want to be safe and not raise any RED flags. My family member will wait on me to get some more income coming in before expecting me to start repaying. Thank you Jesus for family!!!

LDL, you are far too paranoid. It would be better not to put on a check anything. A gift has a meaning, a loan has a meaning. Let it lay.

The bank has no business to report anything. If they do, they are breaking the law.

Sleep well tonight. Your new life is upon you. 'Hub and Mrs.