Checking Account

[klux]

I am signing papers for my chapter 13 today, think it will file tonight or tomorrow. My question is, will they put a freeze on my checking account, I'm just curious if I should take the money out. It shows that there is $2000 balance, but once all the bill checks clear, it is actually only $400 (which is what I need to pay the attorney), but all the checks might not clear until next week. I didn't think of this ahead of time, so I don't know what the procedure is, does the trustee actually get access to my checking account to see what checks/deposits go in/out. I didn't have to provide bank statements to the trustee so far. Just wondering what standard practices are for checking accounts, that's all.

[MOMof3]

Our trustee didn't have access to our checking account at all. I think we provided bank statements for a period before filing and a period after filing. I think they are looking for suspicious transfers. You are allowed a certain amount of "exempt" cash--plus, like you said, most of that money is already spoken for with bills! I wouldn't sweat it. I've never heard of the trustee taking over someones checking account.

[lrprn]

I am signing papers for my chapter 13 today, think it will file tonight or tomorrow. My question is, will they put a freeze on my checking account, I'm just curious if I should take the money out. It shows that there is $2000 balance, but once all the bill checks clear, it is actually only $400 (which is what I need to pay the attorney), but all the checks might not clear until next week. I didn't think of this ahead of time, so I don't know what the procedure is, does the trustee actually get access to my checking account to see what checks/deposits go in/out. I didn't have to provide bank statements to the trustee so far. Just wondering what standard practices are for checking accounts, that's all.

What did you list on the forms as the balance in your account on filing day - $2000 or $400?

I don't want to scare you, but I'm aware of one case where a hard-nosed Ch 13 trustee looked at what was in the account on filing day and took whatever wasn't protected even though the filer had already written checks on the account that hadn't cleared yet and caused those checks to bounce. Ask your lawyer if this could be a risk in your case.

If what will be in your account on filing day is more than you can protect with your state's exemptions and your lawyer thinks it could be a risk that your trustee might get greedy, then before filing, you can stop payment on the outstanding checks and withdraw the amount of the checks plus whatever gets you below what you can protect. Use money orders to pay for the bills instead of the checks and buy legitimate things with the rest (groceries, clothes, etc). Keep all the receipts just in case.

Let us know what your lawyer thinks - hang in there!