Father wants to transfer funds to me

[James16]

What is the name of your state (only U.S. law)? West Virginia

Hi everyone glad to have found you.

I need some help with a difficult situation. My father is in financial trouble is afraid that creditors may seize funds from two of his checking accounts. He is an accountant and has around $40,000 in the accounts from preparing taxes. In order to prevent creditors from getting this money he as asked me to take the money and put it in an account of mine that he can continue to pay bills from until he can straighten things.

As of right now he does not plan on filing bankruptcy, however I am afraid that if it does I may have been a part of a fraudulent transfer, and even if it doesn’t get to bankruptcy I am concerned that I may have incurred some kind of liability, criminal or otherwise. I am hoping that if I am committing myself to legal problems some one here would be able to point me to evidence that I could show him to refuse his request, however, if there are no major legal problems I would really like to help him out.

Thanks

[ecmst12]

Bad idea. Yes, fraud and you could end up having YOUR assets seized too. Tell dad he will have to take money out of the bank and start paying cash for a while.

[James16]

thanks for the quick reply.

is it considered fraud even if he never files bankruptcy? also, if it is fraud what would be the worst that could happen to either of us? jail time?

when you say that my assets could be taken also, do you mean just in that account or any of my assets? we were planning on opening a new account in my name.

also could you point me in a direction where i could find applicable laws regarding the situation to present to him.

thank you so much for your help

[CourtClerk]

The best way for your father to "straighten things" is to use that $40,000 to pay his bills. Other than that, he's just kidding you and himself (if he actually believes that).

If anyone can prove that he is hiding his assets in your name, be prepared to be called into court right along with him and have all of your assets put under the judicial microscope. Your accounts could be/would be frozen until THEY can "straighten things" and believe me, the judicial system doesn't work as fast as you would like it to when YOU have legitimate bills to pay and your father has screwed you out of your own, hard earned money.

[James16]

also i forgot to make clear that he does run a small accounting firm and desperately needs the ability to write checks (credit cards would have sufficed, however recently all the credit he had has been cut off due to high balances) to suppliers, etc.

[James16]

again i could not be more happy with the quick responses.

hes owes over $100,000 in credit card debt. so the 40,000 wouldn't do much to stop the collectors and aside from that that cash is used to operate his business. however hes is in the process of selling his home and a number of rental properties to pay the balance.

[CourtClerk]

Originally Posted by James16

also i forgot to make clear that he does run a small accounting firm

That's a horrendously scary thought.... I think your dad is in the wrong business.

[James16]

although i can understand the fear he does mostly tax with low risk. and the business does moderately well... although not well enough to support a family and pay down 130000 @ 14%.

and i'm not sure if i am violating forum rules by getting too off topic but the majority of the debt is due to making repairs to rental/investment properties that were either unable to be rented or sold quickly enough to repay the debt. if that helps any ones line of reasoning.

[CourtClerk]

Originally Posted by James16

and i'm not sure if i am violating forum rules by getting too off topic but the majority of the debt is due to making repairs to rental/investment properties that were either unable to be rented or sold quickly enough to repay the debt. if that helps any ones line of reasoning.

Irrelevant.

However, it is a really stupid idea to go along with what your father is proposing.

[bigun]

If you accept the transfer and he files bk within a year, this is an insider transaction and the trustee has the authority to sue you to recover the funds.
There is only one thing worse than 1 ship sinking and, that's 2 ships sinking. He doesn't need to involve others in his financial problems.