Must I Report Money Used From Minor Children’s Accounts?

Children & Heirs

Oct 03

Question: I will be filing bankruptcy and am preparing my schedules.  As my financial problems have worsened, I have used money from my minor children’s savings accounts. Do I have to say anything about this?

Answer: Yes. The money you have “borrowed” from your children should be disclosed as a debt you owe. Besides paying the filing fee, about the only thing debtors have to do to get the benefits of bankruptcy is provide a full and complete financial disclosure. We all know that the three most important factors in real estate are “location, location, location.”  In bankruptcy, the three most important factors are “disclosure, disclosure, disclosure.”

Any monies borrowed from relatives, even if they are minors and cannot give their consent, should be disclosed.