Can I serve as a money shelter for my brother who is facing bankruptcy?

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can I serve as a money shelter for my brother who is facing bankruptcy?

My brother has recently short-sold his house and still owes 100k to his second lender and is waiting for them to sue before filing bankruptcy. He has been cashing his paychecks to avoid any papertrails so the bank won’t be able to go after his money. He is planning to leave for Mexico for a few months and wants to give me his money and have me transfer it $1,000 at a time into his account to limit his visible cash supply, and avoid carrying 15k in cash. What is my legal culpability here? What if the banks have actively sued him, can I get in trouble for sheltering his cash?

Asked on February 27, 2012 under Bankruptcy Law, Colorado

Answers:

Malcolm Ruthven / Malcolm Ruthven, Bankruptcy Attorney

Answered 12 years ago | Contributor

What the previous answer says, plus I'll add that if your brother does this he will be committing bankruptcy fraud, a felony. Would he look good in an orange jump suit?

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You would most certainly be held responsible for fraud upon the court, for sheltering the money and hiding assets. The court will find out by the trustee researching papertrails and his employment history and asking under oath where the money is going. His bankruptcy would most likely be dismissed if this is found out and it could be serious for him and for you. Do not do 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.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption