Money in bank when filing for 13

[treehugger1]

I have another question. I also posed this to my attorney. If I file in November and my first payment is December 1 or January 1, I will have a few $k in my bank account. I know I have to state any money in my accounts when I file, but what happens in between? My attorney's answer is that the money is mine. I trust my attorney and all he does is chapter 13 bankruptcies for rural areas where the trustee has to travel 500 miles round trip once/twice per month and oversee many creditor meeetings. I wonder if this is the reason the trustee more interested in the "feasible plan," than in the other issues that can come up.

Does anyone have anything to share on their experiences with "money in the bank" between the time one files and one is confirmed? As mentioned inother posts, perhaps a 100% plan simply overrides thee types of issues. I have $130K - $150K of unsecured debt (over half is student loans) and $0 dollars in assests.

This forum has helped me formulate many questions my attorney can anser without putting themself in an "advise" role. Thanks for sharing any experiences regarding "money in an account." By the way. Oregon exempts $7500 in bank deposits but I have no clue what that impies.

Thanks ahead of time.

[aa06a47]

The trustee office usually ask for bank statements from the date you filed to the date of the 341 meeting. Am not sure what they used them for, but in my case they probably looked at it and said, damn this guy is broke!! LOL!!! I would assume that if your attorney said the money is yours, then it is yours. You will need to have minimal amount in the bank at the time of filing.

[IN-DEBT]

Money In The Bank Also

Our attorney said the same thing. This is my first post. We filed in Sept. and our 341 meeting is the 3rd week of October. Everyone on this site has been great with the history of their bk. I have learned alot from this site. When I told my attorney how this site claims not to have large chunks of cash in my account when filing he said not to worry as we are filing a 13, not a seven and the courts look at this different in our state. I hope he is correct. I feel comfortable with him as this is all he does and worked for 2 of the biggest banks in foreclosures and bankruptcy issues on their side. So I would hope he knows what he is doing. The only reason I have some cash is I quit paying 3000 in min payments and we have good incomes but could not keep up. Has anyone that filed a 13 had cash taken from them? Any advise on this would help. I was devistated until I found this site and I know that I'm not alone. Thanks to all.

[CAB_44]

Our attorney said the same thing. This is my first post. We filed in Sept. and our 341 meeting is the 3rd week of October. Everyone on this site has been great with the history of their bk. I have learned alot from this site. When I told my attorney how this site claims not to have large chunks of cash in my account when filing he said not to worry as we are filing a 13, not a seven and the courts look at this different in our state. I hope he is correct. I feel comfortable with him as this is all he does and worked for 2 of the biggest banks in foreclosures and bankruptcy issues on their side. So I would hope he knows what he is doing. The only reason I have some cash is I quit paying 3000 in min payments and we have good incomes but could not keep up. Has anyone that filed a 13 had cash taken from them? Any advise on this would help. I was devistated until I found this site and I know that I'm not alone. Thanks to all.

WELCOME IN-DEBT!
I was assured of that Wed. when we went to our attorney about money in the bank....just shouldn't be over several thousand~ I'm keepin' mine in a RAT hole here in the house.....hahahaha~ don't have 3K or close to it...but whatever it is...it'll BE MINE!!!!!!!
We have good incomes as well, and I am glad that we can have another month or so before filing so we can save it~

[treehugger1]

You folks have no idea how it helps me to think my attorney must be correct when he stated that the trustee will not be interested in a couple thousand dollar difference between the actal filing and the creditors' meeting. I get the feeling in my district, noone is goign to care if some one is in a 80% - 100% plan. I think I'll trust him on this as all he does is chapter 13 bakruptcies. I think it also helps to live in a state where the general political climate is to protect the working folks from the greed of corporations.

I do have to say I've been having a grand time telling some credfitors that if they want to turn my accounts over to "collection" agencies and lose out on the 50% to 70% principle they will give up to the collection agencies, then they should go right ahead and do that. I can usually extend another 30 days of having them not report to creditors, plus I have in good faith been giving them small payments. I even think that the few of them who have succeeded in obtaining judgements are afraid to act on them thinking that the trustee in our area will just "collect it back" if the amount is over $600 in a 90 day period. BK 13 is a very powerful tool for both creditors and debtors.

I'm all for my creditoprs getting as close to what is owed as possible, and my attorney has stated my "plan" will be quite pleasing to the trustee.

I don't intend to "rathole" any money, but I do intend to make "use" of the timing of the law and record of the local trustee on hig percentage payback plans. I feel bad for folks dealing with very conservative trustees who interpret the new BK law in a different fashion. I just noted a post that implied someone got a plan between 3 and 5 years. My attorney all but guranteed that my plan will be either 3 years or 5 years, there will be no "inbetween."

Thanks to all on this site for speaking up and their willingness to share the wide diversity in how trustees rule. I'll sleep better tonight.

[dac67]

We had to show bank statements from several months prior to filing. I guess it depends on the state.

[IN-DEBT]

When we go to our 341 meeting it appears that we will have over $2600 in our checking as we are not paying on credit cards since August. Just the min. payments were around 3000.00. We had never never been late on a payment till we filed. It just got to the point when MBNA told us they closed all our accounts due to higher than normal debt ratios we had to file. I really felt the trustee would take this but our attorney states no. I hope he correct or I'm toast.

[InLimbo]

We just filed Thursday but ours was a 7. My husband got his check direct depoisted on Thursday also and on the way down to the lawyers office we hit the ATM well we needed the cash to pay the lawyer and drained it all down to around 200.00. I asked the attorney about this and he said it was no problem. I also asked about bank statements and he said that they don't normally ask for them unless you are self employed...maybe it is different in each state...we are in NC.

[13inOR]

Hi Treehugger from a fellow Oregonian!

Yes, I think the higher payback plans allow for more flexibility from the trustees, I know that was the case with us anyway.

[Sham11801]

Im in NY and the attorney told me as long as its less than the amount we are paying back over the 5 years then it wont be looked at and this applied to brokerage accounts as well. I had a brokerage acct which was getting $50 a month deposited automatically which totalled about $4000. HE said since the total payback (although not 100%) was more than the amount in the account(s) they wont consider taking it. Maybe this is different trustee to trustee but thats what i was told here.

[krielly]

Sham, you probably didn't notice, but this post is almost 2 years old...........

We're not supposed to reply to old posts.

Just FYI........

K

[car67]

Still a very valid point.

Chapt 13 doesnt matter on bank balance
Chapt 7 Does from what I gather.