Saving up money after the discharge

[lostinmich]

Saving up money after the discharge...


I'm expecting my ch 7 to be closed in a few weeks. After this happens can I start building up a bank account? I don't want to be saving up some money only to have the trustee or courts come take it a year later. Basically, once I'm discharged does it mean that I truely have a new start??

[HHM]

You can do whatever you want after "Discharge". Actually, you can start saving money the day after you "FILE" for BK. Any money you earn AFTER you FILE for BK is yours and is outside the reach of the Bankruptcy.

Some people get a little confused on this issue as it relates to tax refunds, but realize, you "earn" your tax refund every day during the respective year..., that is why the trustee can still take a tax refund even well after your case is discharged (but only for the year in which your filed BK).

[FilingOnMyOwn]

Besides that, just a couple things that are potential red flags.

Accounts holding over 10k are automatically reported to the government.

The trustee can reopen your case within a year. Highly unlikely, but if you were in a position to repay 25% of your original debt, that is chapter 13 territory. Once again, highly unlikely, but I didn't take these chances myself.

[SinkingFast]

Besides that, just a couple things that are potential red flags.

Accounts holding over 10k are automatically reported to the government.

The trustee can reopen your case within a year. Highly unlikely, but if you were in a position to repay 25% of your original debt, that is chapter 13 territory. Once again, highly unlikely, but I didn't take these chances myself.

Just a side note,............. The rule was changed to track movements of cash amounts of $5K or more after 9/11. Not sure if that applies to the $10K Bank Acct rule or not.

[Spartan]

Besides that, just a couple things that are potential red flags.

Accounts holding over 10k are automatically reported to the government.

The trustee can reopen your case within a year. Highly unlikely, but if you were in a position to repay 25% of your original debt, that is chapter 13 territory. Once again, highly unlikely, but I didn't take these chances myself.

Has there been any cases reopened as a result?

It is not that hard to have $10k in the bank, if you land on a good paying job after bk. When I left college, I built up $10k in the bank in less than 12 months.

I like to see any discharged and closed cases where the filers have moved on and be successful within a year, that resulted in their cases being reopened.

Is that even in the Bk statute? Or is this just an urban legend?

[Spartan]

Also, I am sure if you deposit $10k in cash, you will be reported to the Treasury. But I doubt anyone keeps track of the monthly balance of your saving account and then reports in when you have $10k saved up. That sounds BS to me.