another question about money in the bank

[kathy4530050]

I've been real unhappy with my bank and so last week opened up both business and personal accounts with a new bank. I deposited some money in the new bank accounts and am waiting now for some checks to clear the old accounts before I close them.

Here's my question: I was looking to file in September (lookback period March-August), and imagined that all the bank statements I would submit would be from the new account. But what about the money that's still in the old account? If I make a cash withdrawal this week, can I just keep the cash on hand? If I can do that, I would be willing to wait until October to file, just to be able to keep that cash and do what I need to with it without having my spending scrutinized by the trustee. Does anyone know if this would be ok?

[StartingOver08]

No, this is not Ok.

Every BK district is different, but you can not pick and choose which bank statements you are going to show. Especially since you are self employed you are going to have to show both personal and business accounts (because you are an S corp and the corp is your asset 100%).

Also, because you have a business you will have to show more than 6 months of statements. Most of us that had 1099 income or self-employment income had to show at least 12 months of bank statements, both personal and business. All the statements from every account.

However, you have expenses to offset your income - business expenses are allowed. In fact, they are necessary to show that your personal disposable income is just not there!

[Trixie007]

Well, it's certainly fine to take cash out to use it for living expenses- especially this far out from filing! Just be aware that when the time comes to file you have to declare how much cash you have on hand.

[kathy4530050]

I wouldn't be picking and choosing which bank statements to submit. My lawyer only asked for 6 months of statements--business and personal-- which is why I figured that if I filed in October, this bank wouldn't even show up. AND, this money will go fast because, like a lot of people here, I have been doing without some pretty basic things for such a long time.