Between filing and discharge

[JoeP]

Hello everyone, this is my first post. I have been lurking for about a week. We will be filing Chapter 7 early next year when our lawyer is paid in full.

Here's my question:

What happens in the time between filing and discharge with regard to our finances? We will not be making a car or mortgage payment (surrendering both) and would like to save that money to purchase a new vehicle and 2 months rent. Is that okay? Is there a limit to the amount we save in the period between filing and discharge?

Thanks!

[songbird81]

My understanding is that the trustee only wants to see your bank statements for the date of filing, not all the way through the BK. Other districts could be different though (I'm in MN).

[lrprn]

What happens in the time between filing and discharge with regard to our finances? ... Is there a limit to the amount we save in the period between filing and discharge?

Welcome to BK Forum, JoeP - glad you found us!

When you file Ch 7, your bankruptcy estate is set on the day you file. Extra income after filing is yours to keep unless it's an inheritance or you win a judgment (these will be turned over to your creditors if you get them between fling and 180 days after filing). If the money is earned or you get a bonus, there is no limit imposed like there is for before filing.

The only time making extra money after you file can be troublesome is if your trustee is one that asks at your 341 meeting if your income has changed since you filed. If you can avoid earning extra money between filing and your 341, then you can answer that question truthfully - no.