Would this be considered income?

[nordie]

Such great advice on this forum!

DH and I are working hard to get caught up on our mortgage in order to file Ch 7 and "stay and pay." Currently we are two months behind. (One complete month and one month past due but still within the grace period.)

My parents have generously offered to give us money for one month worth of the mortgage so that we can get our BK filing underway. Would this be considered income for the means test? Or instead of them giving us the money maybe they should write a check directly to the mortgage company?? We will eventually pay them back and I would list it as a debt if necessary.

I don't want to do something that will wind up shooting us in the foot down the road.

Thanks for any insight!

[Floridagail]

They could sent in a check or money order to mortgage company for you. I would not deposit large amount into the checking account right before filing. They could think you are hiding income or something.

When I was about to file, I asked the paralegal , If someone else could pay my attorney fees, she said , We do not care who pays it for you. I ended up taking out 401K money big mistake. Do not take out any 401k money.
I was lucky i was so below median if did not count or hurt me. But it would add to income.

[catleg]

Definitely they should make the payment directly, the money should not touch your hands, just in case.
As far as listing it as a debt, don't do it, it will cause all kinds of problems.

[TheBajan]

Again, the difference is whether or not they are GIVING this to you vs LOANING this to you.

[keepsmiling]

I'd have them write the check directly to the attorney.

[nordie]

Thanks so much everyone!

[Quiznos1]

I just ask an attorney this same question today-He said it did not matter if they paid it to you or directly to the lender-it is considered income for the means test
He said any time you gets funds, no matter what form, to help with your expenses it counts as income. Wish I had better news...

Quiznos1

[catleg]

That may very well be true.
However I would say there is about zero chance of this being discovered by anyone unless you tell them.