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    Bank account vs checkbook register

    how does it affect filing when all of your bills/checks have not cleared on the day of filing and the bank account actually shows more money than you have?
    We are FINALLY going on Tuesday to the attorneys to drop off our paper work and was just thinking about this....
    Thanks in advance
    Retained lawyer 5/18/10
    Stopped paying CC 5/21/10
    Looking to File Ch7 in July, once we pay the Atty

    #2
    It's the balance on the day of filing. Uncleared checks are irrelevant at that point. In other words, uncleared checks are meaningless when it comes to your balance.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

    Comment


      #3
      Originally posted by justbroke View Post
      It's the balance on the day of filing. Uncleared checks are irrelevant at that point. In other words, uncleared checks are meaningless when it comes to your balance.
      Guess I should plan to keep the bills paid in advance until then to be on the safe side. Thanks.
      Retained lawyer 5/18/10
      Stopped paying CC 5/21/10
      Looking to File Ch7 in July, once we pay the Atty

      Comment


        #4
        All your payments for the week to 10 days prior to filing need to be made with money order, cash or some other way that clears the account right away. Don't write a check and expect instant clearance through your account.
        Filed CH 7 9/30/2008
        Discharged Jan 5, 2009! Closed Jan 18, 2009

        I am not an attorney. None of my advice is legal advice in any way..

        Comment


          #5
          Yes, please be wary of this. Some Trustees will ask for a statement from the bank showing the actual balance (current balance) as of the day of the petition. Trustees find a lot of money this way.
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

          Comment


            #6
            I will make sure we do that. We don't have that much, probably less than than we are allowed anyhow, I am just a worry wart!
            Retained lawyer 5/18/10
            Stopped paying CC 5/21/10
            Looking to File Ch7 in July, once we pay the Atty

            Comment


              #7
              It should be adequate to just exempt it if I have an exemption available to use, shouldn't it? On the day of my filing, my rent money will still be accumulating in my account so, even if I didn't think my landlord would wonder why I was suddenly paying that way, I would not have funds sufficient to get a money order or cashier's check for the entire rent.
              11/2008 - Filed Chapter 13
              02/2010 - Chapter 13 dismissed
              08/2010 - Filed Chapter 7 pro se in new district
              09/2010 - Chapter 7 341

              Comment


                #8
                Yes, if you can exempt cash on hand and in the bank accounts that will not be an issue. But anything beyond what you can exempt will be low hanging fruit for the trustee. Meaning he won't have to work hard at all to get it. Cash is liquid: just tell you to hand it over. Its not like some random property that would have to be sold to get actual $ out of it.

                Originally posted by empowered View Post
                It should be adequate to just exempt it if I have an exemption available to use, shouldn't it? On the day of my filing, my rent money will still be accumulating in my account so, even if I didn't think my landlord would wonder why I was suddenly paying that way, I would not have funds sufficient to get a money order or cashier's check for the entire rent.
                Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                (In the 'planning' stage, to file ch. 13 if/when we have to.)

                Comment


                  #9
                  our attorney told us to not write any checks at least 2 weeks prior to filing, to pay via money order or cashier checks, and any $ we had in the account due to unemployment or otherwise, should be withdrawn and if questioned re: it - we could produce the money orders/cashier checks used to pay the bills.

                  We did just that and it wasnt questioned by the trustee at all. I think on our filing day we showed one thing, then at the 341, it was asked again how much we had on hand. We had to bring bank statements as well showing account balances as of the day of our 341.

                  Comment


                    #10
                    Originally posted by empowered View Post
                    It should be adequate to just exempt it if I have an exemption available to use, shouldn't it? On the day of my filing, my rent money will still be accumulating in my account so, even if I didn't think my landlord would wonder why I was suddenly paying that way, I would not have funds sufficient to get a money order or cashier's check for the entire rent.
                    Before you file, go to the teller at your bank and ask for a cashier's check made out to your landlord, in the amount that you have accumulated so far.

                    After you file and you have more money deposited, ask the teller for a second cashier's check for the balance of your rent, made out to your landlord.

                    Then just give your landlord two checks that total up to your monthly rent.
                    Filed Chapter 7 July 2010
                    Attended 341 September 2010
                    Discharged November 2010 Closed November 2010

                    Comment


                      #11
                      I think I'd rather exempt the funds. I don't want my landlord to worry about why I'm suddenly paying rent in money orders instead of the usual check. Two money orders would seem even worse than one, imo. If my landlord wasn't a private party, I might do this, but that's not my situation.

                      I know that if I was a landlord and someone started suddenly paying me with a money order, I'd wonder if they had some difficulty.
                      11/2008 - Filed Chapter 13
                      02/2010 - Chapter 13 dismissed
                      08/2010 - Filed Chapter 7 pro se in new district
                      09/2010 - Chapter 7 341

                      Comment


                        #12
                        I say worry less about what others think - and just make sure you are doing the right thing. More than likely your landlord would not think twice about how you paid last month differently from this month. Studying your habits is probably pretty low on their to-do list. And most people dealing with large payments (rent/mortgage is usually the largest payment we make I think per month) are quite happy to have it in certified funds.

                        If you can exempt the funds, it should not be an issue either way - just make sure your attorney DOES exempt the funds.
                        Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                        (In the 'planning' stage, to file ch. 13 if/when we have to.)

                        Comment


                          #13
                          Sometimes what people think has an effect on whether they renew the lease or decide to put their property back on the market. :] I'm in a fragile position and don't have family to help me out. Keeping my business my own as much as possible and just exempting the cash is safer for me. I still won't be exempting anywhere near as much as the law permits.

                          Thanks, everyone, for your input.
                          11/2008 - Filed Chapter 13
                          02/2010 - Chapter 13 dismissed
                          08/2010 - Filed Chapter 7 pro se in new district
                          09/2010 - Chapter 7 341

                          Comment


                            #14
                            Just a note. I realize that since the cash in my checking account is unemployment compensation, it should be exempt under CA system 2 anyway. So, it seems logical that I should just be able to cite the California code that exempts UI compensation to exempt the contents of this checking account. Please let me know if there's something wrong with my thinking on this. I'd prefer not to keep citing the CA Homestead/wildcard exemption if something else fits better.
                            11/2008 - Filed Chapter 13
                            02/2010 - Chapter 13 dismissed
                            08/2010 - Filed Chapter 7 pro se in new district
                            09/2010 - Chapter 7 341

                            Comment


                              #15
                              You can cite the System 2 exemption for the unused homestead exemption until either the earlier of a.) the cows come home, b.) you have nothing us to use it on, or c.) you've exhausted it.

                              Anyhow, always use a different exemption scheme if it applies. That way, you'll ahve all that "unused" wildcard should you need it.
                              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                              Status: (Auto) Discharged and Closed! 5/10
                              Visit My BKForum Blog: justbroke's Blog

                              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

                              Comment

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