So, I really can't cash a check for $3000?

[Zapata]

Sheesh.

I filed Ch 7 before the law change.. in early October.

I am a beneficiary of a trust that wasn't supposed to produce any funds for at least another year, if ever.

Got news today that a check is on its way to me due to an unexpected return on the investment. For about $3000.

Had First Meeting on Dec 9th. Absolutely did let trustee know about the trust in my filed papers. and he was going to contact the trustee of the trust to inquire about viability of funds and the such.

So... I really want to cash this check and buy some badly needed personal items.. like put snow tires on my car...maybe get the one windshield wiper that doesn't work fixed... go to the dentist and get a crown replaced.. one that had fallen off...
AND, take myself out for a really great steak dinner. I have been living at close to poverty level for the past year.... Oh, maybe get a REAL haircut rather than clipping my bangs myself.

So, guys...do I have to forward this check to the trustee??? And sign it over to him or the court or something????

Please be my angel's advocate... cause I basically want to cash the check and take care of my immediate needs and THEN tell the trustee about it.....but that could get my whole bk dismissed, right????

Just turning to you guys for a little support to help me do what I must do: handle this ethically.... UGH!!!

[bkfiler]

sounds like you know the answer already.

cash the check, put it into a money market account so at least you can make some interest adn take it out if and when the trustee wants it.

if the trustee knows that you are the beneficiary of the trust then he will probably find out.

even if you spend it you would have to pay it back i would guess. however, if you do spend it i would pay for insurance ahead of time - health, dental and life insurance where you can buy a great deal of it for that money. and take it out later if need be.

[StaciMM]

What state are you in? If you're in one of the states that allow you to choose the federal exemptions, you should be fine as there is a healthy wild card provision if you don't own property. (Even if you're not in one of those states, still check to see if there is a way to amend your exemptions. Might save some of it at least.)

[Zapata]

Thanks bkfiler...

Well, I remember reading that one is not supposed to cash any checks BEFORE the first meeting of creditors. So that first meeting is over...

And the primary focus of my first mtg WAS this trust... and I made sure he had the contact info for the trustee of the trust, and he said he would be contacting them.

So... by cashing the check now... shoot.... It could never be construed that I was 'hiding' or 'not reporting' trust funds.. since I KNOW the trustee will be contacting the person who sent me this check post haste!

So.... yeah, I will cash the check and take care of my needs.... and if I have to pay anything back... I will make payments as required by the trustee at the end of the bk. No sweat off my brow to make payments.... but I DO know that I have very urgent needs concerning my health and my transportation (I have to walk to work because it keeps snowing!!!!)...

Yeah.... you helped me. Cause I WANT TO SPEND some of the money right now.... and since the trustee has all he would ever need to KNOW about this payment.... he could never construe that I was hiding it. He can make me find a way pay any or all of it back if he wants... and I will do it....

[Zapata]

What state are you in? If you're in one of the states that allow you to choose the federal exemptions, you should be fine as there is a healthy wild card provision if you don't own property. (Even if you're not in one of those states, still check to see if there is a way to amend your exemptions. Might save some of it at least.)

Thanks Staci!!n (Is your disclaimer specifically meant for me?? EEEK!!! LOL)

Ahh..... I am in Oregon. I will check on the exemption choice.

Hmmm.... might should amend!! Thanks for the tip. I think I DO have a wildcard here.... for like $400 or so....

[StaciMM]

From what I could find on OR, $400 wildcard seems to be right. A small victory, perhaps, but the trustee can't demand all of it.

No, the comment isn't about you. You're the first to comment though!

[Zapata]

Yeah, after re-read your disclaimer, I realized it was part of your sig line... meant as advice for all.

LOL -- I am just in that 60 days post first meeting worry-wart stage.. and hope lightning doesn't strike anywhere near me!

The first mtg, btw, was very routine. There is a big trust that isn't ripe for distribution (someone has to die before the money is mine)... and I had written to the trustee telling him to verify that... since the trust's trustee is a brother who no doubt plans to ever tell me anything or give me the money. Heck, via bankruptcy and a trustee's inquiry is pretty much the only way I could find out if I AM owed money by the trust.

[bkfiler]

i just want to be clear that if it was me i wouldnt not spend it on anything but life insurance that i could cash out later if i had to and health insurance.

this is because i do believe he will end up getting it unless you can exempt it.

[987654]

I'm assuming you filed pro-se? Maybe it'd be worth chatting with an attorney regarding just this situation, I'm sure one would only charge a small fee for a consult, if anything.

I know I'd want to cash the check and spend it, but you're playing with fire IMHO. My trustee specifically told me I had to notify him if I inherited any money within the next 6 months, and I wasn't even expecting anything...in your case he'll most certainly find out. It may not be just a matter of paying it back...you could also face other penalties I imagine.

So I'd err on the side of caution and at *least* talk to an attorney, or fess up to the Trustee and see if you can keep any of it under exemptions (like the insurance option, or a retirement account, etc.)

[Zapata]

Okay.... I see the point. I posted this thread about 10 min after I heard that money was coming my way... and, of course, having lived on peanuts and beans and rice for the past year............... GOD, CAN'T BELIEVE THIS MONEY COMES TO ME NOW!!!! aaarrrrrrrrrrrrrrrrggggggggggggghhhhhhhhh

***bkfiler.. yes, I misunderstood... thanks for the clarification.

I will be CUSSING a lot tonight. I never get a break financially...... sheesh. Well, If I get discharged.. I guess that will be the mother of all financial breaks....so I should shut up and be grateful.