question about UE & bankruptcy

[steveo]

Here's the case. My girlfriend is currently filing for bankruptcy. She is almost done with it and has a meeting of creditors soon. She has to provide bank statements to prove income and all that jazz. She recently went out of state for a day to visit a dying relative and made some charges in that state.

She just has to provide bank statements to the court proving her income. None of those charges out of state will bite her in the butt will it? I doubt the trustee would check every charge and question it, all I think they are concerned with is the amount of money you actually have in there. I dont think bankruptcy court and edd are connected at all but she wont believe a damn word I say.

She's really paranoid that it'll come back to bite her in the butt. What do you guys think? Thanks for the advice!

[LadyInTheRed]

When you say "charges" do you mean she used a debit card connected to a checking account? Or did she use a credit card? How much money is involved? Were the "charges" made before or after she filed her BK petition? What's "edd"?

[steveo]

She used her Edd debit card while she was away to buy food a couple times. The card holds her unemployment checks from the state. And the charges were before it was filled. I just am worried the trustee will look into it wondering " oh wow you are on unemployment and used your card out of state when you were supposed to be looking for work" WHICH she was I might add. The trustee doesn't care right?

[LadyInTheRed]

"Employment Development Department." I should have caught that.

She can spend her money however she wants as long as she wasn't trying to hide cash from the trustee. As long as she didn't use a credit card and did not give people money right before she filed BK, her spending won't be an issue. It is possible the trustee will ask about the spending. She should just answer the questions honestly.

With California's generous wild card exemption, if she is on unemployment, I doubt she had more cash than she could exempt.

[LadyInTheRed]

Catching up to your edits.

I just am worried the trustee will look into it wondering " oh wow you are on unemployment and used your card out of state when you were supposed to be looking for work" WHICH she was I might add. The trustee doesn't care right?

Right, the trustee doesn't care. Or at least, there is nothing the trustee can do about it. There is no requirement under the law that an unemployed BK debtor actively look for work. There is also no prohibition on leaving the state when you file BK or are on UE. She didn't lose her constitutional rights because she filed BK.

[Forthebirds]

The trustee might not even ask to see the bank statements at the 341. I was also stressing about a few purchases, and at our 341 no one asked for recent bank statements.

[Diesel73L]

One of the things that surprised me most about the BK process is the lack of judgement, shame, and emotion in the process. We are so conditioned to think that if we file for BK we're going to be hauled out into the town square, put into the stocks, and that our friends, family, co-workers, and perfect strangers are going to get to throw things at us and call us names. When in reality, it is a cold, logical, and mechanical process that was provided for by the Founders in the Constitution of our country:

Article 1, Section 8, Clause 4:

"To establish a uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States;"

Furthermore, all the trustee cares about is whether or not you have been truthful and whether or not you have property they can liquidate in order to pay back your creditors. They do vary of course because each person is different, but our trustee never even asked how we got into debt. She just methodically went through the paperwork, decided everything was on the up and up, and we were on our way. Our discharge came within 90 days. Our parents, co-workers, friends, and family don't know that we filed for BK and likely never will unless they actively try to find out for some unknown reason. The sooner you realize that you have nothing to be ashamed of and that honesty is the best policy, the more relaxed you'll be.