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Brother wants Sister to Hold Money in Account: OK?
My brother has no medical insurance and a very expensive cancer surgery in the next few weeks. He has filed bankrupty in the last three years. He has some checks from a previous job that he wants me to cash and put into my account, so that his debtors can't touch the money he needs to pay his medical bills. Can I get into trouble for this? I really want to help him out.
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 In a bankruptcy, a person either pays according to an approved plan for a specified period of time and then it is discharged, or they are liquidated and the bankruptcy is discharged in a very short period of time. In the case of the latter, payments are not made to creditors. In either case, a debt may be reaffirmed and repaid according to an agreement in which the court is involved.
The bankruptcy provides protections for your brother. His assets, such as this income, should have been declared to the court, but it depends on where he is in the bankruptcy and when he received the checks. The protections afforded under the bankruptcy prevent a creditor from going after payments outside of the plan.
There seems to be no reason to hide money in this manner if he is still protected. Being in bankruptcy and being discharged protect him. Adding you to the mix would not be a good solution if he is not protected. It only adds your account and you as a party attempting any deception. If a creditor is able to seek repayment, if your account is his known account, your entire deposit balance may be at risk permanently or temporarily to a court's action.
Published on BankingQuestions.com 3/09/10
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