Ready to File

[soscared123]

My appt with the lawyer is Wednesday to review and sign and then he will file. So, if we file Thursday how much money am I allowed to have in my checking account? I get paid again on Friday, is that going to be a problem?

Also, is there anything in particular I should be watching for while reviewing the paperwork? I know not to be in a rush and to read everything carefully.Any suggestions you have will be welcome!

Thank you!

[Jongo]

How much cash you are allowed to have on hand or in accounts is up to the state or federal guidelines (whichever you fall under where you are). Can't answer that without that info, but your attorney can. Also check with your attorney about the other question. Some jurisdictions are pretty restrictive about this - money you are owed (or earned) but not yet paid is considered an asset, so unless it falls under your exemptions, part of it may be at risk. Make SURE you discuss this with your atty - sometimes, timing is everything.

[LadyInTheRed]

Earned but unpaid income is an asset that should be listed on the petition, regardless of where you live. What varies is whether a trustee will notice if it is missing. If you don't have an exemption to cover it, you may want to delay your filing, get paid, pay your bills then file within a couple of days of being paid before you earn much towards your next check. Make sure your attorney knows you get paid on Friday.

When you review your petition, make sure all your creditors and assets are listed and that your available exemptions are applied. Make sure everything is accurate and ask questions about anything you don't understand.

[soscared123]

OK, Thanks you all! I will keep you posted!

[AngelinaCat]

We were told to have as close to "zero" in our checking account as possible when we filed. We actually ended up being a bit in the negative on the account, so that worked out.

As long as you get filed, and the case number, BEFORE your paycheck hits,--even you should be okay. However, some people would say that, you have earned the money in the pay period before you filed. So, that money is part of the BK Estate.

I do not believe it works that way. Anything deposited into your account, after you file and get your case number, should be yours.

There are many out there that will correct me if I am wrong. I just state my experience.

Good wishes to you ~~~

[LadyInTheRed]

As long as you get filed, and the case number, BEFORE your paycheck hits,--even you should be okay. However, some people would say that, you have earned the money in the pay period before you filed. So, that money is part of the BK Estate.

I do not believe it works that way. Anything deposited into your account, after you file and get your case number, should be yours.

There are many out there that will correct me if I am wrong. I just state my experience.

I do think you are wrong on this one. So does Nolo: http://www.nolo.com/legal-encycloped...ankruptcy.html

It's just like a tax refund or inheritance that you are entitled to on the date you file or a future award on a claim you have on the date of filing (even if you don't yet know about the claim). Even if you haven't received these assets, they are assets if the event that entitled you to them occurred before you filed.

[AngelinaCat]

An interesting question...

Thank you Lady, This question is a wobbler for me.

In our experience, our attorney mentioned nothing about 'money owed, but not yet paid'. I had that problem, because my college pays out only at the end of each month.

We filed December 28, 2007--the last day of the business year. My college 'MAY' have sent us our pay on or around the middle of the month, as in December 15, 2007. Since I don't remember this, I cannot say that 'Hub got his Social Security...

I do not remember when 'Hub got his ;pay--if it came on Friday December 28, 2007. But I remember our attorney--inept as she was--stating that we didn't owe anything about unpaid pay.

As both 'Hub and I have said numerous time, the attorney we ended up hiring was a 'train wreck' from the start. But to give her credit, when she actually DID give some advice that was usefull.

Thanks! Best wishes to ALL ~~~

[LadyInTheRed]

AC, I know you had a nightmare experience with your attorney. I am fortunate to have found a good one. He actually never asked me about earned but unpaid income. Based on my paystubs, he knew when I got paid and calculated what I had earned on the date I would file. I noticed it on my petition when I was reviewing it. With that nice wildcard we have in California, it was never an issue.

Have a wonderful evening!

[tobee43]

we were allowed in this district of florida to have $150 in our checking account on the day of the 341. this was unrealistic as it was the beginning of the month and our pension and ss and EI were all in the account. of course that many was earmarked for living expenses. the atty explain it didn't matter as if you expenses let you $150 of less after those expenses were used and then we were minus over 2900 a month. we had no problem. it also may have helped that those were all exempted funds as far a paying creditors and our living expenses were not out of line. we had submitted 3 months statements they all looked the same it showed where all our income was going. however, it is "clear" at least here no more than $150 show be in the account.

[soscared123]

I live in south Florida.

Met with the lawyer and no problems at all. Adjusted a few things, signed and talked about the paycheck. We are filing on Thursday, I get paid Friday.
They only want a few dollars in my checking account tomorrow, not a problem! LOL Anything after I file is all mine. I'm good to go. On Friday I can pay my bills as usual! What a relief! Now I sit tight and wait for the court date. They said there are no red flags with my paperwork and they expect no issues. I know enough to know it ain't over till it's over!!! Thanks everyone!

[Pjmax]

I went to my online bank account on filing day, and printed out activity from last statement to filing day, so I'd have it when it was needed, but no one ever asked for it.

[soscared123]

I'm filed and I have my 341 date and time! Kind of strange…..spent so much time preparing for it and now I have nothing to do but sit and wait!

[AngelinaCat]

Sitting and waiting can be the hardest part. Try not to let it get to you. Go on about your business as usual, and try not to worry.

[Malazan]

Soscared, I am in south florida as well, can you pm me the name of your lawyer and your thoughts about them?

[soscared123]

Thanks Angelina! I really am rather calm about the whole thing now. Enough time has passed that whenever I doubt myself I just remind myself there really was no
other option. I've done nothing wrong, it's not like I live extravagantly or was wasteful. I had some bad things happen and I have no choice but to do this. It is what it is. It's a business decision. I must survive and this is the only way.

I have to say this board has been so helpful! Thank you Thank you Thank you!