$$$ in your bank account the day you file

[diebroccoli]

I understand that the money in your bank accounts on the day you file is immediately the trustees, but exactly when is that amount determined?

I have a biz checking account that can fluctuate as much as 10k in any given day. Do they take the amount at the start of the day, the end, the highest amount during the day, etc?

[StartingOver08]

In my case the Trustee looked at the STATMENT BALANCE ON THE FILING DATE.

I had to provide the bank statement at the 341 to show the balance matched my petition. Anything over the exemption in my petition would have gone to the Trustee. In order to 'control' the balance, I had to pay everything by cashiers check the last few weeks so there were no outstanding checks. The Trustee does NOT take into account outstanding checks when they look at your balance.

[Brighterdays]

are you filing bk for your business? You will want to talk to your lawyer on this one. I was told (personal bank account) to bring one in for that day or week.

[Florida30]

Startingover,

Did the trustee question any of the transactions on your statement between filing date and 341 meeting? Like deposits, debit?

[StartingOver08]

No. The only thing the Trustee asked about was the balance.

[jb1231]

I'm curious. Do they continue to look at your bank account even after the filing date? The reason I ask is because my father isn't in the best of health and he's 3,000 miles away. If I buy a ticket to see him after I file I don't want them busting my chops later. Thoughts?

[StartingOver08]

The only reason they ask for the bank statement is to check the balance AS OF THE FILING DATE. You do not get that statement until after you file - and you usually have it in hand for the 341. The Trustee is just cross checking the amount you have in the bank with what you stated on your petition.

I did NOT have to supply other account information reflecting transactions after the filing date.

[lrprn]

I understand that the money in your bank accounts on the day you file is immediately the trustees, but exactly when is that amount determined?

Your statement "automatically the trustee's" isn't true most of the time. Some states have a bit of room in the state's bk exemptions to protect some cash in accounts on filing day or actually have exemptions for cash (but typically not thousands of dollars). What state are you filing in?

Is there a way to plan your filing so that your accounts have as little as possible in them on the day your Ch 7 is filed?

I have a biz checking account that can fluctuate as much as 10k in any given day. Do they take the amount at the start of the day, the end, the highest amount during the day, etc?

A couple of questions first....
Is your business completely personal? Or is it a sole proprietorship, an S-corp, LLC, etc for tax purposes?

Are your debts more than 50% of your overall debt?

I'm asking these questions trying to sort out how entangled your business debt is with your personal debt in your bankruptcy.

[diebroccoli]

Your statement "automatically the trustee's" isn't true most of the time. Some states have a bit of room in the state's bk exemptions to protect some cash in accounts on filing day or actually have exemptions for cash (but typically not thousands of dollars). What state are you filing in?

Is there a way to plan your filing so that your accounts have as little as possible in them on the day your Ch 7 is filed?

A couple of questions first....
Is your business completely personal? Or is it a sole proprietorship, an S-corp, LLC, etc for tax purposes?

Are your debts more than 50% of your overall debt?

I'm asking these questions trying to sort out how entangled your business debt is with your personal debt in your bankruptcy.

good questions...

-Filing in FL
-debts are >50% business related
-i was an LLC until Jan 1 '09 when my accountant switched me to an S Corp. May go back to LLC if it makes sense for BK
-I am filing personal BK, but as i understand it, b/c i personally guaranteed all biz debt, it doesnt matter. all debt is included in the BK
-Will be buying back my biz assets from the TT over a 6-12 month plan

As of right now, i have about 25k in my biz checking account. BUT, i have a 8k payment for a new piece of equipment due in 2 days, 6k in an inventory payment coming due May 5 (regular monthly payment to a supplier), I owe 13k in '08 back taxes, and still have to pay estimated taxes for any of '09. This is part of the reason i decided to file. B/c i knew i was in the calm before the storm as i still will need to stock up for my busy Q3/Q4 season.

I can manipulate my balance to be whatever i need it to be on the day i file by paying back taxes through EFTPS. Its a dangerous game as my suppliers would not be too happy if they try to charge an invoice that day and get declined.

Since the day i file my balance may go from ~12k to virtually zero, i was wondering how the TT would view that?