Closing an account before filing

[edwards2]

Minney you are so right about the trustee can/might go back more than 90 days to check on payments made to creditors. The U.S. Trustee did that in our case. In our 2004 Exam with her she questioned us about several checks she had highlighted from our bank account which dated back 6 months. Fortunately, we were able to justify them i.e., taxes, mortage. We also had to submit 3 years of bank statements. Granted this was a "special" meeting with the trustee but it does prove the trustee is the strong arm of the court and can do virtually anything he/she wants to. We thought the trustee's objections were limited to the first 30 days after the 341; boy we were so wrong - her objections came ONE day before our discharge. The point is(yes there is one) I would not take ANY chances on the trustee questioning your payments to creditors or anything else for that matter. One unexplained, unjustified slip and the case could be dismissed. It is hard enough to get through the process without taking chances you dont have to take. Follow the letter of the law and you will be okay.

[Debtsarenogood]

the strong arm clause only allows the avoidance of unperfected liens and the avoidance of transfers capable of being recovered under state law i.e. typically fraudulent transfers. So you can't use 544 to get beyond 90 days to recover a cash transfer as a preference. If state law has a preference statute, (the UFTA does for certain insider preferences), you can take advantage of that statute using the strong arm statute.