Bank statements

[laurannm]

Probably a silly question, but lets assume your case will be audited (as ours probably will be according to our attorney). How closely will the UST look at your bank statements? Meaning, we currently show negative on our schedules and since we have stopped paying on our cards, we have a little extra cash some weeks. So for example last night we went out to dinner with friends and spent about $90 total (used our debit card), or we'll use our debit cards to buy coffee in the morning. We haven't nor will we purchase anything major between now and the time we file, but I was wondering if they scrutinize regular spending patterns for even smaller stuff?

I apologize for the paranoia questions...

[lrprn]

Your trustee is won't care about the dinner charges because you used your debit card - you paid for the dinner out yourself. Trustees know that entertainment, dinners out, and other reasonable living expenses are normal and to be expected.

If you do get audited, the US Trustee will look over what's on all the financial forms you provide, but remember - they are looking for expensive luxury purchases and asset transfers especially to insiders, not a dinner out. Hang in there - you'll be fine.

[2muchcc]

Laurannm- Thanks for asking your questions. Those are exactly the types of things that I think about.

Lrprn - Thanks for putting helping to set my mind at ease (a little at least) I am soooo nervous about laying out our lives on paper for others to scrutinize.

[laurannm]

No problem at all, but the real thanks goes to lrprn and all the wonderful people who help answer our questions. The board is like a Godsend

[justplaintired]

Laurannm, I want to thank you too. I was worried about the same thing. Since we quit paying cards, we use our checking acct for everything. We have too we don't have any other method to pay for anything. We use it for McDonalds, gas, groceries.... Every time we use it now I think we will get in trouble for using our debit card. I recently thought about getting some cash out of the ATM and was afraid to in case the trustee asked why we got out $20. Our checking acct has more money in it then normal, but mostly because I am so worried about keeping track of everything for the trustee. Our income last month was less by about $500, no explanation other then the economy. That has me worried to.

So thanks for asking this question. I wish this I could say I'll quit worrying, but I know I won't.

[jp2861]

Are they still doing the random audits? I thought they put a stop to them for 2008.