One of my family members is in severe financial difficulties that are most likely gambling related. He claims that he is in the process of filing bankruptcy and cannot open a checking account. He has used my address as his home address. A process server has come to my house looking for him and I am getting calls from collectors. He wants me to deposit his tax rebate into his account and give him the cash when it clears. What are the repercussions of this?
If it smells like a duck, quacks like a duck and looks like a duck, it's a duck. You probably asked this question because it sounds as though your family member is attempting to use you to conceal assets. Don't take any part in this.
It is possible for a person to open a bank account while in bankruptcy. They may not qualify for any overdraft protections, but there are banks that will open at least savings accounts in cases such as this.
If that tax check is questioned and was paid through your account, if the government reclaimed it, it would come back out of your account, and you would have to recover the money yourself. With the physical check and a proper identification, the check could be cashed at many check cashing companies. This does begin to sound as though it is an attempt to hide this asset from the court, so that none of it has to be paid to a creditor. That itself could be a criminal offense. Best advice: just say no.
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If it smells like a duck, quacks like a duck and looks like a duck, it's a duck. You probably asked this question because it sounds as though your family member is attempting to use you to conceal assets. Don't take any part in this. 