Detailed Accounting ?

[leelee]

My checking account was closed 6 mos. ago due to checks overdrawn -miscalculating my direct deposit

Since then, I've had to use money orders or cash to pay bills.

When/during filing, do you need to provide detailed accounting of where your money has gone --bills, groceries, gas, etc.

It's not that I have anything to hide, however have been lax in keeping documentation.

Thanks

[lrprn]

My checking account was closed 6 mos. ago due to checks overdrawn -miscalculating my direct deposit

Since then, I've had to use money orders or cash to pay bills.

When/during filing, do you need to provide detailed accounting of where your money has gone --bills, groceries, gas, etc.

It's not that I have anything to hide, however have been lax in keeping documentation.

If you are filing Ch 7, the bk system typically doesn't care how you spent your money before filing - trustees and judges just want to know that your income is below the median or you don't have enough monthly disposable income to contribute to a Ch 13 plan. However, if there's suspicion that you filed in bad faith or filed fraudulently, then you may need to prove where your money has gone for a specific time frame before filing.

If you are filing Ch 13, it's very helpful to have actual receipts split by bills and living expenses categories so you know how much money you actually have been spending and how that compares to what the IRS guidelines allow you to claim and how well your expenditures compare to the average in your area.

It's not too late to tighten up your bookkeeping! Start keeping track of where all your money is going for bill payments, living expenses, cash purchases, etc. Find a system that works for you and stick with it. Your lawyer will thank you!

[SinkingFast]

Generally, with Ch 7, you have to show 2 months of bank acct statements when you file. Since you aren't using a bank acct, I'd suggest you keep receipts of everything you purchase. Maybe jot down expenses in a log. How much you spent and what you bought on what date. Also record dates you got paid, and how much. Kinda like your own bank register just as a CYA.

You'll probably be able to file an affidavit in lieu of bank acct statements.

[bige1030]

That 2 month figure is very generally speaking, though, and it's highly dependent on your situation and your trustee. My trustee only asked for a copy of the bank statement from each account for the month including the date of filing. I must have been one of the lucky ones