Savings account!

[sickandtired8]

How soon after filing a Ch 7 can one start a savings account? Or would it be better to wait until everything is said and done? Thanks! S&T

[HHM]

Legally, you can start saving money the "minute" after you file BK. Any income or asset you acquire (with some windfall exceptions for Life Insurance proceeds and inheritance) is yours and not part of the BK estate.

[demismom]

You know HHM - I keep hearing that answer a lot on here, but when I ask my attorney if it's okay to purchase some antiques to make a huge profit she ALWAYS tells me NOT to do it. If what you do AFTER the BK is filed weren't important why does she keep telling me this?

[JRScott]

demismom she might be afraid that the trustee will consider it a windfall if you make a large profit. Which is probably why she is wanting you to hold off.

As for the original question though legally you can open one up, I'd probably wait until discharge just to make sure there are no bumps in the road.

[HHM]

You know HHM - I keep hearing that answer a lot on here, but when I ask my attorney if it's okay to purchase some antiques to make a huge profit she ALWAYS tells me NOT to do it. If what you do AFTER the BK is filed weren't important why does she keep telling me this?

Your attorney is being cautious and does not want to introduce a measure of uncertainty in the case (and for that matter, does not want to get dragged into a court proceeding for which you have not paid her/him to deal with). Legally, aside from inheritance and insurance proceeds, any asset you acquire that was not acquired with BK Estate assets, is your and the trustee cannot touch it. However, when a person acquires assets so soon after filing BK, it gives the trustee a reason to investigate further to see if he can claw those assets back into the BK estate.

Simply opening a savings accounts and depositing a few bucks is no big deal (so long as the cash came from meaning "earned" after the date of filing. The antique thing would raise the question of "where" did the money come from to buy the antiques in the first place...again, if the money came from earnings "after" the date of filing, you would be fine. However you might need to go to court proceeding to prove it.

So, I don't think your attorney is saying you can't "legally" do what you are thinking about, your attorney is being practical and saying to you, don't rock the boat or give the trustee a reason to dig deeper. (even though the trustee would lose, you still have the hassle of dealing with the proceeding).