QUESTION
Can a parent take their son's savings to pay for mortgage during chapter 13 bankruptcy and without the trustee being made aware?
Asked on Dec 21st, 2016 on Bankruptcy - Nevada
More details to this question:
My father has a financial abuse issue. As a result, he is in the midst of a chapter 13 bankruptcy term. The trustee is not aware, but as of late, he is requiring my 16 year old brother to loan him money to pay for his mortgage. Based on past incidences, it is possible but quite unlikely that the money will be paid back. Outside of this, I have evidence that my father using under-the-table money to pay for his purchases. The settlement with the trustee/court allows him to live reasonably comfortably, but in many cases he is not using his income to pay for his budgeted items. I am concerned about my brother and would like to know the legality status of my father taking my brother's savings without that "income" being reported to the trustee. Does my brother have any rights as a minor to refuse to give up his money?
3 ANSWERS
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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First, most Chapter 13 plans provide that you can't borrow any money without the trustee's approval. So, borrowing the mortgage money is a violation of the plan which could get his case dismissed.Second, parents have absolutely no right to take funds from their minor children, quite the opposite, parents have the responsibility to support their minor children - even if the children are rich and the parent is struggling (a child movie star, victim of a personal injury who wins a large judgment or one who inherits money, etc.) the parent still have the responsibility to support the child - not the other way around. Taking money from a minor child in your care is a serious crime.Third, any significant amount of funds received by the debtor need to be reported to the trustee. A large raise or promotion, a second job, family members "helping out", winning the lottery, etc.
Answered on Feb 17th, 2017 at 5:08 PM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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Well, he can, but he could also murder some one. The question is whether he can get away with it. First of all, if you are the trustee or guardian of funds for your child, it's not your money to use, except for the specific benefit of the child. Secondly, it's not nice. The trustee may not know about it-but trustees sometimes find out all kinds of things you do not wish them to know. If you are short of funds, you could try selling some exempt asset(s), or borrowing on a short-term basis from family or friends.
Answered on Feb 17th, 2017 at 5:08 PM
You are suggesting that your father is stealing money from your brother, and that is a financial crime which should be reported to the police and to the bankruptcy trustee.
Answered on Feb 17th, 2017 at 5:07 PM