$13,000 gift to me a few weeks before filing

[LadyInTheRed]

Also, 13 grand gift is a taxable event. Don't compound your stress level. 'Hub

If you are talking about federal gift tax, the current annual gift tax exemption is $13k. Unless there is a state gift tax with a lower exemption or the aunt has given other gifts to the the same person this year, it is not a taxable event. Even if the aunt gives additional gifts this year, the aunt would report the excess over $13k on a gift tax return and would only pay tax if she has already used her $1 million lifetime exemption. If any federal gift tax is due, it is the giver, not the recipient, who must pay it.

[dscurlock]

I have to disagree with a couple precepts. First, the best advice is to give it back uncashed and state nothing more. Attempting to "spend it down" or waiting a time limit, is near to fraud. You know you have it, had it, or spent it. It is surely income and we just had a member with the exact same question worded in a different way. Different answers were given to her. I'm giving the same answer I gave to her. Don't take this gift until your bk is over. Plain, simple, and say nothing. Aunty may be generous in the future. Also, 13 grand gift is a taxable event. Don't compound your stress level. 'Hub

What generous is today, may not be generous tomorrow.

What do you call fraud? getting the money now, and
trying to avoid paying for it in BK? or just waiting to
file Bk for a later date in the future? This $13k would
surely get him down the road for another year or two
making min payments...and the futher it is behind you,
then the better off you would be...well maybe not that
long, but filing BK never helped out with household bills,
and other possible bills....

I do know about you other people filing BK..but if i had the
opportunity to get a $13k paycheck, then i would just
surely put BK on the burner for a while longer...

1: file Bk and have nothing...

2: have $13k - and maybe file in the future...

It is no different then filing with a lessor paycheck..
do i file now, or do i file later when I am unemployeed
and have no money?

and is that not the goal anyway..? Who wants to just
run out and file BK if they can get by awhile longer?

[AngelinaCatHub]

I have to disagree with a couple precepts. First, the best advice is to give it back uncashed and state nothing more. Attempting to "spend it down" or waiting a time limit, is near to fraud. You know you have it, had it, or spent it. It is surely income and we just had a member with the exact same question worded in a different way. Different answers were given to her. I'm giving the same answer I gave to her. Don't take this gift until your bk is over. Plain, simple, and say nothing. Aunty may be generous in the future. Also, 13 grand gift is a taxable event. Don't compound your stress level. 'Hub

[backtoschool]

Once that money is deposited in your account it is a cash asset and needs to be exempted in your petition or spent before you file.

You can either wait to file until you spend the gift, or you can exempt as much of the gift as possible.

[DeadManCrawling]

Good thoughts from the others.

Always listen to your lawyer, but understand he or she is not psychic.

If your lawyer advised to not deposit, it's probably because you have no way to exempt the money.

There are ways around this. One is not depositing it and explaining the situation to your aunt. Then, she could offer the help later, after the bk is at least 6 months in the rearview mirror.

Or you could deposit it and delay filing by at least 6 months. Or longer if the attorney says so. This may not be to your benefit, though, if you spend the money now that would have been a greater benefit after BK.

The money would also be considered income for calculating means test results for a ch 7, and may throw you over the limit. Or it could add to your costs in a ch 13 filing. Not good, either way.

That is it, in brief.

If you can let us know what state you are in, your income and circumstances, there might be better answers. In all likelihood, it is as others have said, and I hope I explained it a little bit.

[keepmine]

Thank your aunt for her generosity and return the check {uncashed}. Tell her you may ask for her help later but right now you're OK.
Or, cash the check and delay your filing until you spend it down.

[nc73]

I am new to the forum and a bit confused and freaked out. I am self emplyed, 56 years old and have been struggling for a year to keep up with household bills due to illness and lack of income. I have no savings. I have already begun with an atty to start filing for bankruptcy with a 30,000 old credit card dept and 40,000 student loan dept. I just received a generous gift from my aunt in the mail for Valentine's day of $13,000.00 to help with staying afloat and having a little cushion in case of an emergency. I need to file bankruptcy and need the gift money to live. I have not told anyone in my family about the bankruptcy and don't intend to in the future.
What are my options? Based on what I have been reading and my lawyer's advice not to deposit the check, I don't know what to do.
Thanks for your help!

Listen to your lawyer.

[ingoodfaith]

I am new to the forum and a bit confused and freaked out. I am self emplyed, 56 years old and have been struggling for a year to keep up with household bills due to illness and lack of income. I have no savings. I have already begun with an atty to start filing for bankruptcy with a 30,000 old credit card dept and 40,000 student loan dept. I just received a generous gift from my aunt in the mail for Valentine's day of $13,000.00 to help with staying afloat and having a little cushion in case of an emergency. I need to file bankruptcy and need the gift money to live. I have not told anyone in my family about the bankruptcy and don't intend to in the future.
What are my options? Based on what I have been reading and my lawyer's advice not to deposit the check, I don't know what to do.
Thanks for your help!