Checking account and filing--I'm so confused!

[sophie]

Can someone please help me! We get paid every week and our money automatically goes right into our checking account and then we write our bills like everyone else. Am I understanding correctly that once I file everything in my checking account is the trustees? Then how do I pay all my bills like mortgage, electric, cars, etc.? Thanks for your help!!!! I love this forum! It's sooooo helpful.

[Danielle1981]

You pay everything and make sure it clears before you file..........

And whether that is the trustee's or not also depends what is listed in your states exemptions. In Colorado....I keep 75%..........the other 25% is the trustees.

I had 13.00 in there on filling date. I paid everything and made sure I had receipts.

[sophie]

Thanks Danielle for answering but I still don't understand when you say you pay everything and make sure it clears before you file. I pay bills weekly. So if I file tomorrow, I'll have to write bills Friday and the next Friday and the next Friday, etc. So how does that work?

[keepmine]

Look at your bank account online and be sure the check has cleared before you file. Print it out and save it if the trustee questions you about the timing. That along with your bank statement should be sufficient.
The date you write the check means nothing in the bk context.

[sophie]

Maybe I'm not making myself clear. Maybe I need to word this differently. Do I continue to write out my normal monthly bills once I file although the money in my checking account is essentially the trustees?

[JeepMom]

File on a Thursday when you have the least amount of money in your account.

No money in your account belongs to the trustee right off the bat. We had $100 in our account when we filed. I didn't give a dime to the trustee.

[annikasaunt]

They can only claim what is in your account the day you file. Not the day before or the day after. We stopped our direct deposits for a little while before filing and cashed our checks and got money orders for the bills. That way there is never any amount of cash available. Save all your receipts for proof. We changed our petition the day it was submitted to reflect the exact balance in our accounts as of the close of business that day.

[anonymuse]

Mine will be "easier" since I only get paid once a month--I'll file right before I get paid. Most of my payments are direct deposit.

Remember, just because you wrote the check doesn't mean its cleared. Instead, get money orders so that you have proof that you have paid and that the money is actually deducted from your account immediately. Pay any bills early to ensure you don't have any money left in your account.

[SinkingFast]

Annikas gave you great suggestions.

Hubby had his direct deposits stopped some time ago. At first I was paying bills with Money Orders. WalMart is the cheapest place to get those.

Now I pay almost everything with my Debit Card. I don't even bother to send payments back in the mail for most of them. I call the utilities, phone companies, etc., and make payments over the phone.

I get Cashier's Checks from the Bank to pay our rent.

That way, the money is instantly gone. No waiting for checks to clear.

Depending on your State's exemptions, your attny may be able to cover any residual balance you may have in the Bank on any given Thursday that you choose to file.

[sophie]

Thank you! Thank you! Thank you! Especially Annikasaunt! Now I think I understand. If I file on a Friday(example), whatever is in my checking account on Friday is the trustees right? Not Thursday's balance, not Saturday's balance, only Friday's. Please tell me this is correct? So what I do is cash my paycheck and get money orders to pay my bills right? 2 things. If it's only the trustee's money on Friday (my example) then why can't I put my check in on Monday? Also, won't the court say why aren't you depositing your checks? Thanks again!

[JeepMom]

If this part has you this stressed, you're in for a long ride.

Step back, breathe, and read.

There is no law stating you have to put your money in a bank. You just need to keep your paystubs and recipts for making payments.

[bkbiker]

What is and how much is your state exemptions and how much of your allowable exemptions are you using to date, your weekly paycheck and the balance in your checking account might very well be exempt. As stated, if you want to play if safe, than do as suggested.

Good luck,
bkbiker

[JeepMom]

I was old law.

[SinkingFast]

Thank you! Thank you! Thank you! Especially Annikasaunt! Now I think I understand. If I file on a Friday(example), whatever is in my checking account on Friday is the trustees right? Not Thursday's balance, not Saturday's balance, only Friday's. Please tell me this is correct? So what I do is cash my paycheck and get money orders to pay my bills right? 2 things. If it's only the trustee's money on Friday (my example) then why can't I put my check in on Monday? Also, won't the court say why aren't you depositing your checks? Thanks again!

The day you file is the day that sets the BK Estate.

If you have a paycheck in your hands, uncashed, the day you file,........... That paycheck becomes property of the BK Estate.

You say you get paid on Fridays. Get paid like normal and then spend all that money before Thursday. Pay bills. Buy groceries. Whatever.

File on Thursday when you bank balance is the lowest and you have the least amount of "cash on hand" that you attny will have to cover with an exemption.

[sophie]

Any one from PA?

I don't know how much my state exemptions are. I tried looking it up and don't see the answer. Would anyone want to check it out?

http://www.pennsylvania-bankruptcy.com/exemptions.html

Is there anyone from PA filing or has filed? If yes, do you know what exactly you can keep i.e. house, if all debts are unsecured and in one name but house and checking accounts are in both names?