Using Your Checking Account

[krispy12]

I'm planning on filing in a few years. I just found a job & opened up another checking account. I will be getting direct deposit & using it for gas & groceries. I know they check your checking account history several months back when you file but is it ok to withdraw most of my money & use cash instead of my card? Is it even ok to be using my checkcard for basic needs or should I just use cash?

[liz417]

If you use cash, keep the receipts. You mean you are filing in a few months, not years...right?

[epiphany]

I too am assuming that you mean a few months???

Use your checking account as it was intended..bank debit is actually better than withdrawing cash because you will have a record of where the money goes...but you probably have nothing to worry about.

Day to day living expenses via your bank account are not going to be scrutinized by anyone unless you have done something fradulent.

And they don't always check your bank statements. No one asked for mine.


ep

[TEW]

they need the bank statements to fill out your Schedule J so you want that to be recoded how much gas, groceries and such, if you are well below means then don’t worry about it. I personally would rather have the records

[AngelinaCat]

Hi Krispy, 'Hub would say 'Hi KrispyKritter' It sounds like you are doing good. Keep the reciepts and don't over-extend yourself. Congrats on the new job. My best~~

[epiphany]

they need the bank statements to fill out your Schedule J so you want that to be recoded how much gas, groceries and such, if you are well below means then don’t worry about it. I personally would rather have the records

I agree it's better have the records than not but who needs your bank statements to fill out your schedule J?

I think you will find this not to be realistic in many cases since the living expenses are racked up before the decision to BK is even made. Who keeps grocery receipts when they haven't realized their situation yet?


ep

[Medora]

WEll I'm at the point now where I'm planning on filing in May if all works out... Since we're sole proprietors, I'll ahve to do monthly p and l statements (arrgh! more bookkeeping!). So i too have been wondering if I need to document stuff besides business expenses. I started just taking out cash for the week and spending that, with occasional bank debits. But what other receipts would you need? Don't they just go by the standard IRS amounts? I think we'll be (just) under the means, so should I also be saving receipts for stuff like extra medical expenses?
I hate the bookkeeping part, so sure would like to simplify things!
Thougths?

[TEW]

I agree it's better have the records than not but who needs your bank statements to fill out your schedule J?

I think you will find this not to be realistic in many cases since the living expenses are racked up before the decision to BK is even made. Who keeps grocery receipts when they haven't realized their situation yet?
ep

Well i could prove i was spending 400 a month on gas and 300 a month on food So i did not need receits i used my bank statments

[Mark80]

The only thing I was told to bring is the statements of my bank account and savings account showing the balance on the day I filed. Nothing else in regards to proving anything. I will find out Wednesday if my Attorney got something right.

[StartingOver08]

However, when you have a business you do receive more scrutiny than the normal filings. I had to provide two years of bank statments. If you are filing in May, you will want to document everything - so you might consider using the debit card as an automatic record on your statements.

[krispy12]

I withdraw half of my paycheck so I can use cash. It helps me not overspend too much. I did mean a few years, I am waiting 2-3 years to file. I've got alot of issues to sort out. Meanwhile, I guess I will not withdraw as much cash. Thanks!