receiving cash gifts
November 6th, 2007 by Questions
what happens if I receive cash money after I`ve declared bankrupcy?
One Response to “receiving cash gifts”
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November 08, 2007 at 11:34 am, A licensed trustee said:
One of two things will happen:
1) if it is a “gift” you trustee may treat it as income and it will be subject to the same surplus income rules that apply to any money you earn. If the gift puts you over the allowable threshold you may have to make an additional payment to your trustee; or
2) if it is a gift you trustee has the right to declare the money as a “windfall” in which case they may require you to hand over the entire amount for your creditors.
If the money is a loan then you’ll need to prove to your trustee that the debt has to be repaid – your trustee will likely wnat to see a loan document, review the repayment terms and then of course you’ll have to prove that you are making the payments…
If you haven’t filed yet, discuss your concerns with your trustee before you file. If you have already filed then I suggest you call your trustee before you accept the money.