Legal Question in Bankruptcy in Florida
My sister is in the process of filing bankrupt because of credit card debt. She lives with me and pays me 400.00 a month in rent. Can they go after that money from me? If so how far back can they collect?
Shes been living with me for ten yrs paying the 400.00.
Thank you...
Dean Giustiniani
2 Answers from Attorneys
The rent your sister pays to you is not something that the bankruptcy court will interfere with, unless it is exorbitantly high compared to the normal rental prices in your area. It does not sound as if that's the case.
If your sister is filing a Chapter 7 case she certainly can pay you rent going forward.
Chapter 7 is a "snapshot" of her situation, and really is based on the property and debts she has on that date. After that, the money she earns after her filing date is hers to keep and spend as she likes.
There can be an issue sometimes when a person filing Chapter 7 or 13 pays back old debts they owed, whether to an ordinary creditor or to a family member. In those cases, it may be that the debtor paid certain chosen creditors while not paying others, and the Chapter trustee will try to get the payments back, sometimes by suing the person or company that received the payments.
A similar problem arises when a debtor has "given away" property shortly before filing.
In your situation, your sister presumably wasn't paying old debts, instead she was paying monthly rent as it came due. There is nothing wrong with that, and the amount seems more than reasonable.
Good Luck.
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