In a Chapter 13, does your trustee see anyand all bank accounts you have even if you only disclose your main checking?
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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 12 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.
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