My brother and his soon-to-be-ex-wife are going through a bankruptcy and then a divorce. The bankruptcy papers are being typed and will be needing their approval before filing and we are guessing the bankruptcy will be filed in the next month or two. Since my brother and his wife have itemized their items in their house and his apartment about two months ago, her dad has purchase a house for her and their (brother’s) two kids. The new house has been gutted and remodels with all new furniture. Will these additional purchases (besides the house since it’s in her dad’s name) have any bearings on the upcoming bankruptcy? Will she have to itemized her property again since the paperwork hasn’t been filed? We’re assuming that her dad provided all the items inside the house, including new carpet, paint, floor molding,etc. Thank you. We are trying to figure out how she is making these purchases. Since October until the current date; she has taken the kids to Florida to Disney World and to visit family (10days), got new furniture in the house, new carpet, paint, decor, etc. The house was purchased by her father in October 2008 – which is a given that she won’t lose the house which is good because the kids have a nice house to live in. But the typical – she is complaining she has no money wants more money from my brother. Basically… It depends on the type of bankruptcy she is filing. In a Chapter 13, you have to repay some of the debt you owe. The amount you repay depends on your income and cash on hand at the date of the filing. A lawyer will tell you to get rid of the cash in checking/savings accounts (but NOT retirement accounts) or the bankruptcy trustee will take it. So perhaps she’s spending the money as the lawyer advised her to do. Let her know that NOTHING her father is providing for her should be mentioned at the bankruptcy hearing. Her lawyer should have already informed her of this. In either bankruptcy, it is unusual for the court to demand personal belongings be sold and the money handed over. If you have valuable art or an expensive coin collection, or you’ve invested in diamonds, then those assets would most likely have to go. But your household items, clothing, appliances, etc. Are not really worth too much when sold as used, and you value each item at what you could get for it if you had to sell it today, so there isn’t really much danger of that happening. She should just leave the listed property the way she submitted it. Since I’m assuming she has an attorney, that’s the person she should talk to about this. In some states you can’t file bankruptcy without going through an attorney.