Is Money I Give to My Mom for Safekeeping Protected if I File Bankruptcy?

22 Dec Is Money I Give to My Mom for Safekeeping Protected if I File Bankruptcy?

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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Peter Orville is a bankruptcy lawyer in Binghamton, located in the Southern Tier of New York. He is a member and New York co-chair of the National Association of Consumer Bankruptcy Attorneys.
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