Fraud or not. please help really confused need some advise. here's my story

[StartingOver08]

Yes the petition has a place for you to disclose any money you have loaned - and the trustee will go after the $$. Your best bet is to spend down the funds before you file. Save enough to pay the BK attorney and the IRS (pay both before filing). Look at your exemptions and see what you can have in the way of cash/401 etc.

[kornellred]

Hiding or transferring assets before a bankruptcy filing is fraud with a capital F. You cannot have your cake and eat it, too.
Talk to an attorney and see if there is anything that you can do with the money before filing that will not be questioned (precious little, it would seem).
If you are going to wipe the slate clean (so to speak) with a BK filing, then all 56 grand will do is make you worry about what to do with it. It's going to suck for quite a while no matter what you do.
Best to just let the trustee distribute it and forget it even existed.

[keepmine]

thanks guys. i will find out when i talk to the new atty later. but looks like i will be waiting as long as i could before i file. i am due for a new car though. what happens if i lend some money to the in -laws. they asked to borrow 10,grand for a down paymen for a house. will the trustee go after them..

Your obligation is to yourself and your family. From your post, it would appear you need every nickel of that settlement for basic living expenses. You don't need to be lending anyone money for any reason.
As Startingover posted, the trustee will go after your inlaws in a heartbeat. Just take care of your business-everyone else is on there on.

[falken]

That's only 54 $1,000 bills! When my wife and I used to travel to all-inclusive resorts for vacation I'd get a couple bundles of $1 bills to use as tips for servers, maids and bartenders. It really wasn't that thick a wad!

54 $1000 bills would be worth a whole lot of cash, especially if they were in good condition!

[2strong]

thanks for your help guys.i have set up a meeting with a CPA at the end of the week. and anotheratty ill see what i will come up with. having the weekend to think about it. i might be leaning to a short sale,consolidate all my bills which most are already consolidated and just let the other CC's hassle me for awhile untill i get an offer to settle then if its 50% or so off i will pay it off. i have to confirm this but i was told that they now have a 1099E or something like that. that will exempt you from taxes owed from the short sale. sounds to good to be tru so i am going to have to do some digging on this. i figure i can always file BK i should try all possiblitiys before,,

[LuciluS]

thanks for your help guys.i have set up a meeting with a CPA at the end of the week. and anotheratty ill see what i will come up with. having the weekend to think about it. i might be leaning to a short sale,consolidate all my bills which most are already consolidated and just let the other CC's hassle me for awhile untill i get an offer to settle then if its 50% or so off i will pay it off. i have to confirm this but i was told that they now have a 1099E or something like that. that will exempt you from taxes owed from the short sale. sounds to good to be tru so i am going to have to do some digging on this. i figure i can always file BK i should try all possiblitiys before,,

You are going to the right person to answer your questions above - The CPA! Make sure to ask him about a short sale, & 1099C & 1099E. I know with a 1099A you have to prove to the IRS you were insolvent before the settlement. The CPA maybe able to give you pointers on placing some of that settlement into an Annuity or IRA. Then it would be the BK Attorney who would be able to tell you how much time allowed before filing BK.

We quit paying most of our CCs late last Sept. except for one. I think all are in the hands of Collection Agencies. Received some form letters, but nothing stating a Lawsuit. So you have time between the Stop Pay on CCs & filing BK. BTW we will be filing on 9/30/09.

Good Luck

Luci

[2strong]

i forgot to mention that i was located in Ca.and im 31yrs

[whipster1]

You could get another house I reckon...

[destitute]

FWIW, I received a 8400 settlement from a class action lawsuit last month. I'm getting ready to file chapter 7 and my attorney told me it will not be looked at as income for the means test as it was payment for damages from 2007 and won't be something I'll get again. I used the money to pay taxes and the attorney's retainer. I sure hope she is right otherwise I'll be forced into a 13 as I'm over median but pass the means test easily as long as you don't count the settlement. I'm in the Ohio Southern court district.

[Goodgrief]

54 $1000 bills would be worth a whole lot of cash, especially if they were in good condition!

Yeah they don't use $1000 dollar bills any more. Trust me, I asked numerous times recently. I take $5k to $7k to the gun shows and asked if they could lighten my "wad" of cash. I can't believe they still use pennies. They have no purpose other than tax reasons, but it is our silly government now isn't it?

If your going to show you paid 50k you need to wait a year and save receipts(preferably your own ;) ). I am in the same boat with a $30k inerhitence and I need to spend it down. it only asks you on the filing form if you got any money in the last year. So time is your friend with trying to "spend" large amounts of money.

I am researching if I am able to put 20k down on a land contract.
In my state I am able to keep 20k in equity. You might check your state. As for putting it in a 401k, I was told that the trustee will take it and might consider it fraud. You can always open a new checking account and close the old one. This might help not show the large deposits or withdrawals.

But Please don't comit fraud as it could really put you in a world of hurt.