Results 1 to 4 of 4

Hybrid View

  1. #1
    Join Date
    Jul 2008
    Posts
    7

    Default Family Contributions to Mortgage Costs and Bankruptcy

    My question involves bankruptcy in the state of: California

    The mother of my goddaughter is having to declare bankruptcy. She has lived in my home for the last 10 years and contributes towards the mortgage and other bills. We have no rental agreement because she's family and even if she was unable to pay I would not have her leave, but she does pay as she can afford.

    How should those payments be listed/documented on her chapter 7 petition? Home expenses or rental costs? in general, her total contribution is about 750/mo.

    Thank you!

  2. #2
    Join Date
    Oct 2006
    Posts
    16,474

    Default Re: Family Contributions to Mortgage Costs and Bankruptcy

    Quote Quoting cgray77
    View Post
    My question involves bankruptcy in the state of: California

    The mother of my goddaughter is having to declare bankruptcy. She has lived in my home for the last 10 years and contributes towards the mortgage and other bills. We have no rental agreement because she's family and even if she was unable to pay I would not have her leave, but she does pay as she can afford.

    How should those payments be listed/documented on her chapter 7 petition? Home expenses or rental costs? in general, her total contribution is about 750/mo.

    Thank you!
    Its time to draw up a lease.

  3. #3
    Join Date
    Mar 2013
    Posts
    18,340

    Default Re: Family Contributions to Mortgage Costs and Bankruptcy

    Quote Quoting cgray77
    View Post

    How should those payments be listed/documented on her chapter 7 petition? Home expenses or rental costs? in general, her total contribution is about 750/mo.
    It's rent. No matter what you call it or how she pays it, she's paying to live in your house. That's rent.

    The problem that she might have with her bankruptcy is that she is paying to a "family" member without any documentation and the court might look upon the claimed amount with suspicion.

    Worse, you are probably not declaring that on your income taxes which is tax evasion and a federal crime.

    If you haven't done your 2014 taxes yet I suggest you declare the rental income on Schedule E and take the appropriate expense deductions. Consult a tax pro on how to do that.

    She can then use your tax return as documentation of her past rental expense.

    Meantime, get yourself one of those duplicate rent receipt books from the office supply store and give her receipts for the rent she has paid, keeping a copy for your own files.

    I don't see the need for a written lease under the circumstances as long as you are both documenting the rent payments. But that's up to you.

  4. #4
    Join Date
    Jul 2008
    Posts
    7

    Default Re: Family Contributions to Mortgage Costs and Bankruptcy

    Thanks. Good news sort of, I'm STILL not paying any income taxes even with that being included. Sometimes being poor as dirt can be helpful

    1. Sponsored Links
       

Similar Threads

  1. Mortgages: Clearing an Old, In-Family Mortgage Off of the Property Title
    By NewYorkHV in forum Buying, Selling and Conveying Real Estate
    Replies: 2
    Last Post: 08-05-2010, 10:43 AM
  2. Responsibility for Mortgage and Family Debts After Death
    By srutherford in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 05-29-2009, 11:46 PM
  3. Chapter 13: Is My Lawyer Liable for Increased Mortgage Costs, in Pennsylvania
    By madhornet in forum Bankruptcy Law
    Replies: 1
    Last Post: 11-07-2007, 08:20 AM
  4. Closing Costs for the Assumption of a Mortgage
    By katydid in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 10-17-2007, 11:14 AM
  5. Chapter 7: Bankruptcy Filing and Costs
    By Lizbeth0405 in forum Bankruptcy Law
    Replies: 2
    Last Post: 08-17-2007, 09:49 PM
 
 
Sponsored Links

Legal Help, Information and Resources