Taking cash out of bank account before filing.

[a.fla]

We are filing chapter 7 in February/March. We took about $2,000 out of our account to hold as cash to make sure we have enough to move into a new rental with in case one of our creditors decided to garnish our acct. We haven't been served, but do not want to take any chances as we have about 70k in debt and I know they're not happy!

At a 341 hearing, will they question this? We'll keep our receipts, but just worried that this will become an issue.

Thanks!

[emoney]

Keep detailed records of how the money is spent. The Trustee may ask for them.
regards,
emoney

[chpxiii]

I don't remember much of my 341. I do remember that I had to put down how much cash I had, which included any amounts in a checking account.

You're doing good with keeping receipts and a log of where the money went incase they question you. I think this will be ok.

[a.fla]

Any idea being that we're filing in Feb/March, how far back they'll want receipts? We've taken out about 1,200 at the beginning of October out of our checking, but honestly, I don't know where every penny went. If we can't remember, what's the worst outcome thata trustee would do over that amount?

[keepmine]

Relax! It's not illegal to have cash on hand prior to filing. If questioned, tell the truth-you were worried about lawsuit and potential bank account levy and you just kept a nominal balnce in the bank. The trustee has seen that before-no biggie.

[a.fla]

I figured I wasn't the only one who's done this, just freaking out a little... Thanks!

[253BK]

How about IRA and 401K's can they take those???

[magyar123]

How about IRA and 401K's can they take those???

No

[nc73]

Ummm cash isn't exempt, at least not with texas exemptions. So would the trustee not demand the money?

[keepmine]

Ummm cash isn't exempt, at least not with texas exemptions. So would the trustee not demand the money?

You need to be certain that on the day you file, your bank account and cash on hand is below what your state exempts.

[253BK]

where can I find out where our state exepmt is??? I am in washington state

[lrprn]

where can I find out where our state exepmt is??? I am in washington state

Here you go - http://www.legalhelpers.com/us-feder...ptions-wa.html

[SinkingFast]

Ummm cash isn't exempt, at least not with texas exemptions. So would the trustee not demand the money?

Cash is the Trustee's favorite asset to seize.

No liquidating required. Just turn and burn.

[chpxiii]

Cash, yes CASH, that you have in your checking account IS considered cash. You can have it in a bank, or, literally, "on hand."

I don't know if it is changed, but when I filed and was asked about how much "cash on hand" I had, I had to include what was in my pockets, purse, couch cusions AND checking account.

[nc73]

Cash, yes CASH, that you have in your checking account IS considered cash. You can have it in a bank, or, literally, "on hand."

I don't know if it is changed, but when I filed and was asked about how much "cash on hand" I had, I had to include what was in my pockets, purse, couch cusions AND checking account.

What if you fibbed and said you have no cash on hand?