In a Chapter 13, does your trustee see anyand all bank accounts you have even if you only disclose your main checking?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
In a Chapter 13, does your trustee see anyand all bank accounts you have even if you only disclose your main checking?
My husband gets per diem andit’s sporadic. It’s also tax free. We don’t want to have to disclose it to trustee. Can we simply keep in separate account trustee doesn’t have access to?
Asked on June 29, 2011 under Bankruptcy Law, Indiana
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Unfortunately, no--you can't legally hide income or assets from the bankruptcy trustee. A bankruptcy filer has to disclose all of his income, and all of his bank accounts and other assets; it doesn't matter whether it's a separate account or not. (Consider: if this wasn't the rule, *everyone* would hide 90% of their assets and just disclose a tiny bit.)
Also, you say the "per diem" is tax free. It *might be,* if it's for expenses actually incurred while traveling or entertaining or etc. for business. But if this is a way for your husband's employer to give him extra income without it being linked to business expenses, then it is actually extra income and taxes should be paid on it.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.