If I’m ready to file Chapter 7 and Iunexpectedly gota 30k gift from a family member 3 weeks before I’m going to file, what do I do with the money?

 Spend it?

Asked on November 29, 2011 under Bankruptcy Law, Florida

Answers:

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 8 years ago | Contributor

Well, first of all, if you received that gift in the calendar month prior to whatever month you file your chapter 7 case, it will count towards your income on the means test and my disqualify you from filing Chapter 7.  Notwithstanding that, the 30k is an asset which must be disclosed and, if possible, exempted under applicable law.   If you do not have sufficient exemptions to protect it, then you will need to turn it over to the Chapter 7 Trustee.

If you "spend it" on non-essential items, that is grounds for denial of your discharge under 11 U.S.C. 727.  

You need to discuss all this very soon with a bankruptcy attorney in your area (I say soon, because if you received the 30k in November, you'd need to file your bankruptcy case by November 30 in order to prevent the gift income from factoring into your income/budget analysis.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr

Mark J. Markus / Mark J. Markus, Law Offices of

Answered 8 years ago | Contributor

Well, first of all, if you received that gift in the calendar month prior to whatever month you file your chapter 7 case, it will count towards your income on the means test and my disqualify you from filing Chapter 7.  Notwithstanding that, the 30k is an asset which must be disclosed and, if possible, exempted under applicable law.   If you do not have sufficient exemptions to protect it, then you will need to turn it over to the Chapter 7 Trustee.

If you "spend it" on non-essential items, that is grounds for denial of your discharge under 11 U.S.C. 727.  

You need to discuss all this very soon with a bankruptcy attorney in your area (I say soon, because if you received the 30k in November, you'd need to file your bankruptcy case by November 30 in order to prevent the gift income from factoring into your income/budget analysis.

Mark J. Markus, Attorney at Law

Handling exclusively bankruptcy law cases in California since 1991.

http://www.bklaw.com/

bankruptcy blog: http://bklaw.com/bankruptcy-blog/

Follow Me on Twitter:  @bklawr


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.