Financial Aid to a bankruptcy friend

February 16th, 2008 by Questions

If I give a money gift to someone who has declared bankruptcy, do they have to report that as income? What is the best way to help out a friend financially, in this situation?

Questions

One Response to “Financial Aid to a bankruptcy friend”


, Barton Goth GCO Bankruptcy Trustees said:

If you give your friend money while they are in bankruptcy then they will have to declare this as income to their trustee and indirectly it may increase the cost of the bankrutpcy as a result of the Superintendent Surplus Guideline.

However, as any surplus is likely averaged over the entire duration of the bankruptcy it may not have much of an impact on their payments.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)