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?

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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 12 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 12 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


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