cash transactions from checking and chapter 7

[Stressedout7]

does cash withdrawls in the months leading up to bancruptcy cause a problem? my husband has a habit of taking money out a couple times a week for expenses and living, about 400.00 a week? will this be a problem?

[Mi Bankruptcy]

It won't be a problem. You will just need to account for where the money is being spent. If your chapter 7 is difficult you could be asked for receipts..

[Trixie007]

we took $700 every two weeks in cash (household of 4) that covered everything except gas and regular bills - our attorney indicated that wouldn't be a problem without receipts.

[LuciluS]

Because the majority of our expenses are over the National and Local Standards, our BK Attorney advised us to keep receipts for the 6 mths preceding our filing of BK on 9/30/09.

My husband is a Long Distance Truck Driver gone usually 6 days a week. I'm disabled, so he does the grocery shopping. Every week, he marks the Wal-Mart SuperCenter receipt for Food, Personal Hygeine items, products purchased for home maintenance & food items he takes with him in the Big Truck.

He also goes to the ATM and draws out money each week for use while in the Big Truck. He gets a receipt for everything. If he stops at a rest area & buys a soft drink & chips, he will use a small pad & notate city,state of reststop, date & time & items purchased and the total. It's amazing how many receipts he has in a month's time.

Attorney will review the receipts and if Trustee requests them, we gotta em LOL! We will be below our State's Median Income for the 6 mth. 'look back' period. I receive Social Security Disability and that income is not included in the look back period; however, the Gross is used in determining our disposable income.

Hired an Attorney? If so, I would seek his advice on the withdrawal of $400 cash monies each week.

[Mi Bankruptcy]

You are not required to keep receipts. However, if you list a regular expense that the trustee believes is too high that could potentially hurt you if you can't prove it. If your on the boarder of a 13 and trying to go 7 you want receipts.

We strictly stuck to using our debit card for everything so we could account for where our money went if we were ever asked.

[bkfdrusa]

You do not need to worry about receipts. No one is going to look at each and every line of your bank statements.

[AshShep01]

does cash withdrawls in the months leading up to bancruptcy cause a problem? my husband has a habit of taking money out a couple times a week for expenses and living, about 400.00 a week? will this be a problem?

I was taking out around $500.00 every two weeks. At my 341 Meeting my UST, had all those transactions highlighted. She asked me exactly why was I withdrawing that amount? Where was the money going? So just be prepared.

FILED 02-19-2009
341 MEETING 03-25-2009
RE-AFIRM HEARING 06-08-2009
DISCHARGED 06-16-2009
PRO SE

[bkfdrusa]

I was withdrawing almost $1000 every week in Jan to Mar. I think we can tell them going to clubs, casinos, and other regular food expenses for a family of 4.I stopped using my credit cards, so used only cash for expenses. If he does not rrust me, I do not have an answer for that. May be I will end up in trouble. But my lawyer said that the trustee should not ask those questions. See, you can take your wife out for dinned every night to a grand restaurant, Trustee should not say no to that. My lawyer said that my Trustee do not ask for bank statments even.

[Amy26]

I was just at my lawyer's office handing in my bank statements and stuff and I actually feel a lot more at ease than I did before. They told me the trustee I have is really nice and one of the legal assistants actually had the same guy for her bankruptcy. They said I don't need receipts and that he really doesn't care about the transactions on my bank statements but the available balance the date I filed. They said he's really quick and very nice. They even gave me a list of the questions he's going to ask me and told me to fill it out and just hand it to him at the 341...

I think it varies greatly between districts and what kind of case you have. I'm like 30k under the median and don't have anything that really sticks out. So, its very hard to tell someone with a totally different case in a totally different state "no you don't need receipts you will be just fine".

My only problem now is hoping I don't have any issues with my creditors themselves. As I've mentioned, I've used a couple of my credit cards very recent to filing and did those 2 Discover balance transfers like 94 days before I filed.

[bkfdrusa]

Only mean trusties will do like that. Even then money gone is gone. They cannot deny your petition based on that. Everyone has a right on their own money. you can spend it however you like.

[tinfoilhat]

Only mean trusties will do like that. Even then money gone is gone. They cannot deny your petition based on that. Everyone has a right on their own money. you can spend it however you like.

Very untrue. From what I've been told or have read on here.
Excessive spending on non necessities is a big no no and the trustees are going to go after the amount you spent or the stuff you spent it on.

Again, that what I've been told by people on this site. It's hiding it so the trustee can't give it to the creditors, it's fraudulent, it's unethical, etc.

[bkfdrusa]

Well the money is gone. What can they do?.

[AshShep01]

Well the money is gone. What can they do?.

They can deny your petition and dismiss your case. You have to be really careful when handling cash during your BK. The UST might feel like the cash you were keeping on hand for pleasure. Could have help to pay some of your debits back. My UST even wanted copies of my Rent checks because of the $$$ amount. She wanted to make sure I wasn't writing the checks to friends or family. So good luck.

FILED 02-15-2009
341 MEETING 03-25-2009
RE-AFIRM HEARING 06-08-2009
DISCHARGED 06-16-2009
PRO SE

[AshShep01]

I was withdrawing almost $1000 every week in Jan to Mar. I think we can tell them going to clubs, casinos, and other regular food expenses for a family of 4.I stopped using my credit cards, so used only cash for expenses. If he does not rrust me, I do not have an answer for that. May be I will end up in trouble. But my lawyer said that the trustee should not ask those questions. See, you can take your wife out for dinned every night to a grand restaurant, Trustee should not say no to that. My lawyer said that my Trustee do not ask for bank statments even.

Also I don't think it would be in your best interest to tell the UST. You were taking cash out for clubs, and casinos. Yes, to the food expenses. Did you include that in your budget?

[bkfdrusa]

See, I was withdrawing $1000 per week. which comes to 4000 per month. When I was using my credit card earlier, my monthly credit card bill was around 1400 per month. I was withdrawing almost around 1000 per month even when using credit card. So, my total montlhy expenses are 2500 per month. And when I am not using my credit card, I have to withdraw cash only. Correct?. Because I did not had job, you have to add my job search expenses also. So, I think I am ok.