Bank accounts

[suzyqpug]

I have a question - my attorney needs 1 year worth of bank statement. I had an account close in May 2008. DO I need to tell him about that account? WIll the courts know about the statement. I had about 7,000.00 in it but depelted it down to zero and then the back closed it out.

[BK2008]

I would tell him about it. I would not be comfortable hiding financial info, as it could be construed as fraud and jepardize you BK.

I told mine and the trustee (yes, they do ask about bank statements) about all of the accounts, even the closed ones, and what I did with the $$ from them.

[Flamingo]

Suzy - yes, report/provide everything for the entire year period. You will probably be asked, as we were, to explain all checks/withdrawals over a certain amount and deposits over a certain amount during that period of time. Do not withhold any information because it can jeopardize you later.

[Help!]

Definitely tell him, and if I were you I'd bring final statements for any closed accounts to your 341 meeting. We moved four months before filing (and obviously switched banks). We were asked about those accounts at our 341 hearing and later had to provide the previous 8 months statements for all of those closed accounts to the UST. Better to have those statements on hand.

[suzyqpug]

Is the trustee able to find out on there own. If i do not provide it will they find out? I called my bank today and they have 2 - 1000.00 checks cashed, a 250.00 checked cash and then 8-500.00 mac withdrawels, all in the same month. We used the money to pay bills and gamble. How does one explain that? The 2 checks were written out to friends, cause i charged 2000.00 on there charge card in december. How do i answer that one?

[Help!]

You would be absolutely amazed what trustees can find out. Were the withdrawals all on the closing statement? If so, the withdrawals of cash aren't a big deal as those could have gone toward living expenses. The checks to friends are considered preferential payments to creditors and if the checks were written within 90 days of filing the trustee will likely try to recover those payments.

[Help!]

Most importantly, no matter what, be 100% honest with the trustee. If anything like this comes up at your 341 hearing, don't worry about how it looks... just speak the truth. Trustees have seen and heard it all, and they are adept at sensing that something is being concealed. If there are things in your financial history that really worry you (the types of things that could get a case dismissed), it might be better to wait until those drop off the back of the 6-month period prior to filing.

[suzyqpug]

I did 8 mac withdrawls in March for 500.00 each time. I was gambling and trying to win back money. Stupid I know. The other amount was 2- 1000.00 checks not sure If i wrote them out to cash or someone else. I will call the bank tomorrow and then i did another 250.00 check too. I told the attorney that I was gifted money from someone cause i was having trouble paying our bills. He was fine with that. I also gave him my income tax and showed him where we claimed the gifted money. They only thing is I owed someone 2000.00 and I wrote them out 2 - 1,000.00 checks. not sure if i wrote them out to them or to cash. Would it matter. That was in March or April? Will they ask who it is and then contact the person? I am getting sicker by the moment, thinking OMG. what if they ask the person back for the money? Is gifted money aloowed? And if so how much? WE told the attorney that we us the money to pay debts, which we used 4250.00 for debts and 2000.00 to pay someone back. Any help would be appreciate. I am starting to panic....

[fltoo]

You would be absolutely amazed what trustees can find out. Were the withdrawals all on the closing statement? If so, the withdrawals of cash aren't a big deal as those could have gone toward living expenses. The checks to friends are considered preferential payments to creditors and if the checks were written within 90 days of filing the trustee will likely try to recover those payments.

Don't forget, the payments to friends are insider pref payments with a one year look back, not 90 days.
But, I did learn reading here that they can be paid back by you instead of the person you gave them to.

Suzy, did the attorney give you any inkling as to what chapter you can file or is it too early yet?

[suzyqpug]

He says he believes chapter 7

[Joe Farmer]

Tell them you used the money to pay bills and gamble.

It's the simple truth. You are allowed to pay bills, and you are allowed to gamble. And if you gamble and win? Well, then- you are also allowed to pay TAXES on the winnings.

[Flamingo]

I did 8 mac withdrawls in March for 500.00 each time. I was gambling and trying to win back money. Stupid I know. The other amount was 2- 1000.00 checks not sure If i wrote them out to cash or someone else. I will call the bank tomorrow and then i did another 250.00 check too. I told the attorney that I was gifted money from someone cause i was having trouble paying our bills. He was fine with that. I also gave him my income tax and showed him where we claimed the gifted money. They only thing is I owed someone 2000.00 and I wrote them out 2 - 1,000.00 checks. not sure if i wrote them out to them or to cash. Would it matter. That was in March or April? Will they ask who it is and then contact the person? I am getting sicker by the moment, thinking OMG. what if they ask the person back for the money? Is gifted money aloowed? And if so how much? WE told the attorney that we us the money to pay debts, which we used 4250.00 for debts and 2000.00 to pay someone back. Any help would be appreciate. I am starting to panic....

Suzy, many of us on here advised you as soon as you started posting to be honest and open as to everything with your attorney. Lying now and then coming clean later can mess things up terribly for you and your attorney. Hiding things can get you in trouble and trustees are not stupid - some are bloodhounds. Take the advice given to you and utilize it - it's marvelous advice.