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How can the Trustee know if she buys in cash from a Pawn shop? I thought the Trustee knows only of those assets reported through information given by the Attorney and what they can research with a Social Security Number. Bank accounts and safety deposit boxes I understand, but the only thing I can think of is she will be asked 'where's the money going' from her paychecks being cashed.
I'm not on her side, but maybe someone advised this woman that the Trustee wont find out because it's cash so she's taking advantage of it?
They will ask for bank statements. They will compare those against employment checks. Large sums of cash not accounted for have to be explained.
From the IRS website, if it is a gift, the OP might have to pay taxes,
Quote:
Who pays the gift tax? The donor is generally responsible for paying the gift tax. Under special arrangements the donee may agree to pay the tax instead. Please visit with your tax professional if you are considering this type of arrangement. What is considered a gift? Any transfer to an individual, either directly or indirectly, where full consideration (measured in money or money's worth) is not received in return.
Otherwise, have you ever counted a car loan or home loan as income? I haven't ......
Don't ever do what I did. Ever. I need to go have stupid tattooed on my forehead. I hope all of you learn from my mistake.
I loaned a friend 7K. I got a letter from the Bankruptcy Court today that she has filed Chapter 7. It was just a loan between friends so I have no paperwork to use to file a proof of claim. I guess I just lost all that money I worked for. Every last cent.
Sad thing is she is now better off than I am. She is working at Microsoft and marrying a wealthy man in 3 weeks. I'm sure filing the bankruptcy was a condition of the marriage. If I was him, I would have done the same thing.
So here's my question. Can I write this loss off my taxes since the government is giving her permission to skip on her debts? I certainly suffered a loss.
An accountant or a tax attorney would be the best sources of information on a question like this.
Interesting update. I went to PACER and got a copy of her filing.
She lied. She listed her debt to me as 2K DISPUTED(what's that?). I have the cancelled checks(I think) for 7K. Why would she lie about the amount? Makes no sense to me. Is this enough to get her case thrown out? Or at least make the court question her honesty?
Interesting update. I went to PACER and got a copy of her filing.
She lied. She listed her debt to me as 2K DISPUTED(what's that?). I have the cancelled checks(I think) for 7K. Why would she lie about the amount? Makes no sense to me. Is this enough to get her case thrown out? Or at least make the court question her honesty?
I doubt she'll get her case thrown out. She probably lied because she had that influx of money, which will make the trustee question why she couldn't pay bills. Make sure you file your proof of claim.
If you do that, and she gets on a repayment plan, then you'll get some money back. Don't file your proof of claim, you get nothing.
Also, if it is a community property state where you live, and she gets on a payment plan, as soon as she gets married her husband's income counts (even against his will) and her plan payments will go way up, and then you should get all your money back. But of course, if they trustee grants chapter 7, you won't.
Lying like she did can make a trustee mad, and in some cases cause the trustee to grant a 13 instead of a 7.
Hey Yellowsnow, first of all don't blame yourself for your generous nature. She's obviously a greedy brat, be happy that she has been weeded from your life.
Secondly, I believe the forgiveness of debt form that was mentioned earlier is form 1099-C...you report the amount to the IRS, but would have to have her SS number. She would then have to pay taxes on it. We use that form for our clients who have refused to pay large amounts due to our corporation. I'm not sure if you could use it for a personal loan, however. You may want to check the IRS website.
"Generally, if a debt you owe is canceled or forgiven, other than as a gift or bequest, you must include the canceled amount in your income. You have no income from the canceled debt if it is intended as a gift to you. A debt includes any indebtedness for which you are liable or which attaches to property you hold. If the debt is a nonbusiness debt, report the canceled amount on line 21 of Form 1040. If it is a business debt, report the amount on Schedule C or Schedule C-EZ (Form 1040) (or on Schedule F, Profit or Loss From Farming (Form 1040), if you are a farmer). Form 1099-C. If a federal government agency, financial institution, or credit union cancels or forgives a debt you owe of $600 or more, you will receive a Form 1099-C, Cancellation of Debt. The amount of the canceled debt is shown in box 2. "
Interesting update. I went to PACER and got a copy of her filing.
She lied. She listed her debt to me as 2K DISPUTED(what's that?). I have the cancelled checks(I think) for 7K. Why would she lie about the amount? Makes no sense to me. Is this enough to get her case thrown out? Or at least make the court question her honesty?
Sorry but she LIED ! If you can present that to the trustee ( they still are interested in her financial affairs for up to 180 days AFTER the Bankruptcy discharge . Meaning if her uncle Joe dies tomorrow and leaves her $ 75,000 then helloooo creditors !
Do not let her get away with that. She signs a paper under swearing the truth about what she owes you or borrowed from you...... Shejockeyed around the amount she owed you to make it fit , in whatever way that worked for her...WRONG !
Contact the trusteee ASAP ! If he tells you to go away , consider this closed.
If he is interested in this , he is going to want to TALK TO YOU.
Bring your Proof !
You are a creditor of sorts . You have a RIGHT to present your case.
Interesting update. I went to PACER and got a copy of her filing.
She lied. She listed her debt to me as 2K DISPUTED(what's that?). I have the cancelled checks(I think) for 7K. Why would she lie about the amount? Makes no sense to me. Is this enough to get her case thrown out? Or at least make the court question her honesty?
The disputed part is saying as far as SHE'S concerned she doesn't owe you the debt.
Definitely contact the trustee ASAP - a. the amount is less than she owes and b. as far as YOU know it's not "disputed".
Wow, what a piece of work she's turning out to be.
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