Q: I have a straightforward chapter 7 bankruptcy case that I want to file. The one complicated thing is that my mothers pen
My mothers pension check is auto deposited into my checking account and I use that to pay her assisted living home and her prescriptions store. I don’t know if I need to put that as income because it’s in my account or if i Can leave it off the financials.
A:
When you file for bankruptcy relief, you must answer all the questions in the several Official Forms, *under penalty of perjury*.
As it lies, you have a doable debt/asset issue; BUT, if you "leave it off", you will be committing perjury, probably several counts thereof, and there is no mere debt problem that justifies any criminal activity of exposure.
You will be expected to produce, to the bankruptcy trustee/US Trustee, all of your bank statements for the three months preceding the bankruptcy filing, and that will show the deposits of your mom's pension distribution.
It is way better to show everything and honestly, and explain (with documentation of your expenditures for mom) that you receive and disburse that $$ in trust, and that it is not yours. (It would be preferable to change the depositary account for the pension distributions before you file for bankruptcy, but you must still disclose all transactions; trust me, the trustees and US Trustees have seen this all before.)
Speak with experienced bankruptcy counsel in your jurisdiction and be sure to explain these transactions, with everything else) during your preparation for filing.
A: List it as property held for another person.
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A: When filing for Chapter 7 bankruptcy, you must disclose all sources of income, including money that passes through your accounts, even if it is not technically your income. It's important to explain the nature of these deposits on your bankruptcy forms; you can note that this money is for your mother's expenses and not your personal income. This distinction is crucial as it may affect your eligibility and the outcome of your case. The funds may not be considered part of your income if they are strictly for your mother’s care, but they should still be disclosed to avoid any appearance of impropriety or concealment. It would be wise to keep records that clearly show the source and use of the funds to substantiate your claim. Consulting with a legal professional to ensure this is correctly handled in your paperwork can prevent any misunderstandings or issues with the bankruptcy trustee. Transparency is key in these situations.
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