Contribution Letters
Some Debtors who have to file a Chapter 13 bankruptcy are receiving help from a family member or friend in order to make ends meet. Part of getting a Chapter 13 plan confirmed is to show the Trustee and the Judge that the Debtor will be able to pay all his regular bills plus his chapter 13 Trustee payment. The way this is done is by filing schedules to show the Debtor’s income and expenses. If he is receiving help from a family member, the money must be listed as part of his income.
The other thing with listing income, the Debtor must be able to prove he is really receiving the income. In cases where a family member or friend is helping the Debtor by giving him money, the person contributing to his income must sign an affidavit stating how much is contributed each month. The Trustee use to accept a signed letter, but now they want a notarized letter from the person contributing stating how much is given each month and saying they will be contributing that income for the entire bankruptcy.
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