Checking accounts

[tiger4life]

I was told that the Trustee does not check checking account or any other accounts, I do know by law you have disclose any assets but do they physically check the accounts. I have nothing to hide just wondering because on here it seems people have said they do but people that I know that have gone through it says they don't.

[Shawshank]

Most require you to submit statements of all your accounts, including checking, savings, investment, etc...
On top of that, you sign the petition and are under oath at your meeting of creditors (341 Meeting) that all the information provided is true and correct.
Is the trustee going to call your bank to verify exactly how much is in your account? Probably not.
Will they perform a massive search to find hidden assets? Probably not depending upon your case.
Are you willing to risk not getting a discharge of your debts or even imprisonment?
I should hope not.
Do some people game the system and lie? Yes, stupidly...and at their own risk.
Would you be wise to to just be honest about everything and have your fresh start also be an "honest" fresh start?
Absolutely!

[StartingOver08]

Shawshank nailed it.

Also, in my 341 I had to supply my bank statements showing the balance of my account on the date of filing. This was in addition to the documentation provided prior to filing.

What would you do if the Trustee asked for your bank statements showing your filing date balances and your petition did not have the correct number?

[RuthCB]

I'll tag along in this thread with another question.

I have $11.41 in a paypal account I use to purchase hobby supplies over the internet.
I also make a little pin money selling my products but it is only "sales" to my family and friends. I made a tiny profit. Does that count as a "bank account".
Oh, and the money I made went to my adult daughter's bank account as she is my "helper". It's just a fun thing we do.

Should I include the last 3 months statements in my papers I give to my lawyer?

[StartingOver08]

Include all accounts, including paypal.

[music12]

the profit you make from the sales are income, but if you pay it as "commission" to your daughter then i guess you would deduct it anyway. if it were millions of dollars you'd have a problem, but if it's under $200 then it could just be considered a gift to your daughter.

[RuthCB]

the profit you make from the sales are income, but if you pay it as "commission" to your daughter then i guess you would deduct it anyway. if it were millions of dollars you'd have a problem, but if it's under $200 then it could just be considered a gift to your daughter.

It's really like a gift to her. I just give her the "profits". Since Jan 1st 2010, the total has been $380.00.

It never even entered my mind this was income until I started putting together my BK papers.

BTW, isn't the limit ( without tax) on gifts to adult children $13,000 per year?

[music12]

that's the limit for tax purposes.

for bk purposes, you cannot give a family member gifts over $200 in the year (or two?) prior to filing. however, if you are paying for her services in "helping" you, and then splitting the profits, then your gift is much less than $380. you'll have to do some reasonable math and see.

since you never thought of it as income, i guess you never put it in your tax forms either. but i think you should report it as income and report some part of it as a gift to your daughter (hopefully you can come up with math that will make the gift less than $200). if it's $380 in less than 4 months then it's something like $1200 a year which is no longer a tiny amount.

[RuthCB]

that's the limit for tax purposes.

for bk purposes, you cannot give a family member gifts over $200 in the year (or two?) prior to filing. however, if you are paying for her services in "helping" you, and then splitting the profits, then your gift is much less than $380. you'll have to do some reasonable math and see.

since you never thought of it as income, i guess you never put it in your tax forms either. but i think you should report it as income and report some part of it as a gift to your daughter (hopefully you can come up with math that will make the gift less than $200). if it's $380 in less than 4 months then it's something like $1200 a year which is no longer a tiny amount.

Thank you for your responses. It's not on the 2009 tax because it just started in Feb of 2010. It is a very sporadic endeavor. Just when I feel like making soap ( that is what the hobby is). Since I have this information, I won't be handling it this way any more.

[RuthCB]

that's the limit for tax purposes.

for bk purposes, you cannot give a family member gifts over $200 in the year (or two?) prior to filing. however, if you are paying for her services in "helping" you, and then splitting the profits, then your gift is much less than $380. you'll have to do some reasonable math and see.

since you never thought of it as income, i guess you never put it in your tax forms either. but i think you should report it as income and report some part of it as a gift to your daughter (hopefully you can come up with math that will make the gift less than $200). if it's $380 in less than 4 months then it's something like $1200 a year which is no longer a tiny amount.

I hope I'm not taking over this thread, but it all gets so complicated and worrisome sometimes.
To add to the complication... the adult daughter lives with my husband and me.
She graduated from college just as the recession hit, and I guess you could say she is "under-employed". She contributes to the household some of her income. My lawyer didn't seem at all concerned about this.

[music12]

hmmm. this always sounds complicated to me. i guess if she is contributing just enough to cover her own expenses, then you don't need to report her income (or include her in the household). but others know far more.

[RuthCB]

Update: I said I had a really good lawyer. She already emailed me back.

Here is her response: Just list it for purposes of full disclosure. It won’t make a difference in the outcome, but it won’t hurt anything to disclose it.