Is Money I Give to My Mom for Safekeeping Protected if I File Bankruptcy?
By Peter Orville, Attorney at Law on Dec 22, 2008 in Bankruptcy Cases & Legislation, Bankruptcy Practice and Procedure, Exemption Issues, General Bankruptcy Information, New York
A recent case in the Southern District of New York Bankruptcy Court illustrates the importance of having a knowledgeable bankruptcy attorney, and telling him/her about ALL of your assets.
Brian Driskell cashed out his exempt retirement account, and gave $1,800 of it to his mother to hold for safekeeping. Then he filed his bankruptcy petition in Judge Altenberger’s bankruptcy court. Mr. Driskell’s petition listed the $1,800 as exempt because he got it from an exempt account and it was being held by a third party. That was a mistake.
The trustee objected to Mr. Drisell’s claimed exemption and Judge Altenberger agreed that it was not exempt.
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