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  1. #1
    Join Date
    Dec 2017
    Posts
    5

    Default Parent Took Adult Child's Money and is Now Filing Bankruptcy

    My question involves bankruptcy in the state of: New Hampshire

    Hello there,

    I am a 19 year old who has been employed since age 14. Since then, I have saved up a significant amount of money, and I used the money to go on trips, pay for my insurance, car, gas, phone, etc. I took a gap year this year and saved up nearly $30,000 to spend the year traveling abroad. However, over the last year or so, my dad asked to "hold onto" my money and had me empty my bank account (to nearly empty) so he could invest in new businesses, and would "give me the money back" after the down payments were done and he got the money back. I never really questioned it. However, when I asked for some money to go on the next leg of my adventure a few months ago, he said he didn't have it so I would have to wait. He also had me cash in my savings bonds and my college savings. Not even including my college savings and savings bonds, I have handed him $25,000 in cash over the last year (which is literally ALL of the money I earned except for my basic expenses and an international trip I paid for).

    Last week, my dad told me he was filing for bankruptcy (Chapter 13 I believe; the one where you get to keep your house if you make payments on it). He told me that he would try and pay me back when he could, but getting the money anytime soon was obviously not happening. However, it has been a rough month, and he has been particularly upset the last week. However, today that turned into me not getting my money back, me getting kicked out of the house, and him taking away my phone and car (both of which I paid for monthly by giving him cash!) because I was "not helping the problem."

    I don't want to sue him because I think suing your parents (in most cases) is kind of despicable. However, I really wonder if he ever meant to pay me back at this point. And after taking all my money that I worked so hard to earn and was going to travel with, it's just an extra kick while I'm down that I'm getting kicked out of the house with no money to even support myself. While I don't wish to ruin my family by suing or anything like that, is there something I could do such as part of the bankruptcy, I can indicate that I am owed money or something? I just feel robbed.

    Thanks

  2. #2
    Join Date
    Nov 2013
    Posts
    7,056

    Default Re: Parent Took Adult Child's Money and is Now Filing Bankruptcy

    You were robbed. What your father did is just despicable. But technically and legally, the money you earned and saved before you reached the age of 18 is under the control of your parents.

    Getting kicked out and having to support yourself may be a good thing. You have been working since your were 14 and saved up a nice nest egg. Your plans for travel and college will have to wait now until you recover. And I think you will.

    That is a hard lesson you learned. And as the old saying goes, You can't get blood out of a stone.

  3. #3
    Join Date
    Sep 2005
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    Behind a Desk
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    98,846

    Default Re: Parent Took Adult Child's Money and is Now Filing Bankruptcy

    Quote Quoting JacobJ
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    However, over the last year or so, my dad asked to "hold onto" my money and had me empty my bank account (to nearly empty) so he could invest in new businesses, and would "give me the money back" after the down payments were done and he got the money back.
    New Hampshire does appear to follow a version of the common law rule, that parents are entitled to the services and earnings of their unemancipated minor children, but the right is not absolute -- it applies during minority, and is contingent upon the minor's living with and being supported by the parent who is claiming the benefit of the child's income or services.

    If you were allowed to keep your money until you reached the age of 18, and you lent it to your father after you reached the age of 18, I expect that a court would find that even if your father could have kept some of that money had he exercised his rights during your minority, he did not do so and lost any further claim when you reached the age of 18.
    Quote Quoting JacobJ
    I don't want to sue him because I think suing your parents (in most cases) is kind of despicable.
    If your father is filing for bankruptcy, even you filed suit your lawsuit would come into the bankruptcy.

    You can make a claim through the bankruptcy court as an unsecured creditor, and would receive payments in the amount of whatever percentage the estate is ordered to pay to unsecured creditors over the course of the repayment plan. Although in rare cases a Chapter 13 plan involves 100% repayment, usually the repayment is of an amount that is considerably less than that, and sometimes it's pennies on the dollar.

  4. #4
    Join Date
    Dec 2017
    Posts
    5

    Default Re: Parent Took Adult Child's Money and is Now Filing Bankruptcy

    It was right around my 18th birthday that I withdrew the money, I cannot remember if it was before or after. I would have to check the dates. I guess I will talk to him about it, and he can ask his bankruptcy lawyer if I should include myself as an unsecured creditor. Thanks!

    Quote Quoting budwad
    View Post
    You were robbed. What your father did is just despicable. But technically and legally, the money you earned and saved before you reached the age of 18 is under the control of your parents.

    Getting kicked out and having to support yourself may be a good thing. You have been working since your were 14 and saved up a nice nest egg. Your plans for travel and college will have to wait now until you recover. And I think you will.

    That is a hard lesson you learned. And as the old saying goes, You can't get blood out of a stone.
    I just feel like I wasted a year of my life; I could have gone to college and spent the money on tuition. I guess I learned a lesson and will just need to recover.

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