Q: Is it considered a gift when filing for Chapter 7 bankruptcy and helped family pay for housing within the last 2 years
My family member is mentally ill, and I am also his representative payee. I have provided financial assistance for lodging totaling approximately 10k in smaller amounts over the course of 2 years. The money I had provided went toward keeping him from homelessness. Does this still fall under the gift category or is there another section where this should be recorded in the bankruptcy documentation? He is unable to pay the money back so I do not believe it falls under a loan category.
Also, since I am his representative payee his Social Security check is direct deposited into my account every month for his living expenses. This money is strictly used for him and none of my expenses. Do I still need to disclose this in the Bankruptcy since it is going into my account? If so how is this disclosed?
A: Yes. You still need to disclose this under property held for others question. All of it should be disclosed as a matter of course although it should not have any negative effect on your bankruptcy.
Robert Simonian agrees with this answer
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