filing on payday?

[hhwwe2]

Despite what i have read about filing the day after payday here my attorney didn't seem to think it would be an issue filing ON payday.
I get paid every 2 weeks and net about 1200.
Long story short..... due to several factors it will look WAY better for me NOT to include july in my 6month lookback but the last weekday in july(30) happens to be payday.which i ABSOLUTELY need for filing costs and to get me by 2 weeks.
Assuming the money has been withdrawn and spent prior to filing later that day will i have a problem? Anybody have any ACTUAL experience regarding this?

[jdcat]

I personally would not agree to file on payday. It won't matter if you have the money withdrawn that morning and spent by that afternoon. What will matter is the stated balance on your bank statement for that day. If your statement says you had such and such an amount it won't matter to the trustee if the cash was actually in the bank or not. It would be much better for you to file on the 29th or sooner if at all possible if you don't want July to be included in your income.

[pepperoncini]

I personally would not agree to file on payday. It won't matter if you have the money withdrawn that morning and spent by that afternoon. What will matter is the stated balance on your bank statement for that day. If your statement says you had such and such an amount it won't matter to the trustee if the cash was actually in the bank or not. It would be much better for you to file on the 29th or sooner if at all possible if you don't want July to be included in your income.

+1 I completely agree.

[StartingOver08]

You don't have to file the last day of the month - you can file any business day of the month and not include July's income.

Did your attorney say that he has exempted your entire paycheck and that is why he is not concerned? Different states have different exemption amounts. You don't say where you are located so check here for your cash exemptions: www.legalconsumer.com

[helpmeout]

You have two options here:

1. File the day before so that you don't have to worry about exempting the paycheck.
2. Use exemptions to exempt the paycheck. And if you don't have any that you can use, plan on having to turn that money over to the Trustee.

[hhwwe2]

??

You don't have to file the last day of the month - you can file any business day of the month and not include July's income.

Did your attorney say that he has exempted your entire paycheck and that is why he is not concerned? Different states have different exemption amounts. You don't say where you are located so check here for your cash exemptions: www.legalconsumer.com

I'm in MI. I didn't see any Specific cash exemptions other than the wage garnishment exemption. I believe that applies to money i hadn't actually received yet but earned(as paychecks are a week behind).
I don't see why I couldn't buy an exemptable item though. maybe that's why she wasn't concerned.
Unfortunately, i NEED that final paycheck in July for filing fees among other things.I most likely won't have it on the 16th.I get paid every 2 weeks and the 31st is saturday so can't file then obviously.
A possible loophole???????????
2 of my 3 direct deposits are onto prepaid cards which i disclosed but only offer an online balance and transaction list. It ONLY shows a REAL TIME balance so my printout would show a 0 balance if i took the money out. The credit union deposit i was told to stop anyway because they would freeze the account.

[StartingOver08]

Your petition has a place for your bank balances and cash on hand. I am assuming that the money you take out of your pre-paid cards would either be paid to the attorney or disclosed as cash on hand in your petition.

You are allowed to pay your attorney fees out of your funds - it is perfectly acceptable. Naturally the attorney has to disclose their fees anyway.

[hhwwe2]

?

Your petition has a place for your bank balances and cash on hand. I am assuming that the money you take out of your pre-paid cards would either be paid to the attorney or disclosed as cash on hand in your petition.

You are allowed to pay your attorney fees out of your funds - it is perfectly acceptable. Naturally the attorney has to disclose their fees anyway.

thats what i thought. just wanted to be sure. i imagine thats why she didn't say much about it.

[Medport]

I'm still trying to learn all the laws. For Ohio it states "Cash, money due within 90 days, tax refund, bank, security, & utility deposits to $400 total" Does this mean you can only have $400 on the day you file? Maybe I made a mistake by depositing my whole 3k check that was a combination of my 2 weeks pay and a one time longevity bonus. I have'nt actually paid the lawyer so filing hasn't started, but it sounds like it takes about 5 weeks from when they turn the paperwork in. I'm sure it won't take me long to spend the money as it will cost about $1350 to file, but should I start being careful how much I deposit until I know the date of the meeting?

[StartingOver08]

Its the amount that is in your accounts and in your pocket/hand on the date of FILING. It has nothing to do with the 341 except in many cases you have to supply your bank statements to show your balances on the filing date at the 341.

If you have more than the $400 in all of your accounts including the deposits with utilities, then the Trustee can, and probably will, take those funds to fund your BK. Even if you have written checks and they have not cleared your account, those excess funds not exempted go to the Trustee.

[Medport]

Man they don't give you a break do they? I would like to have a little cushion to get me started on life without credit. So its probably a good idea to plan or at least have a good idea of when the filing date is and do needed repairs/expenses a good couple weeks before hand? I usually estimate low though and don't want to run out of money that I'll need for paying the mortgage, car, utilities, ect...

[liz417]

I had planned to file the day before payday, but there was a miscommunication with my attorney and he filed on payday! I was worried up until the 341, but the Trustee did not question my account balance (over $2k).

[Shuganon]

In Michigan you are allowed to use the Federal Exemptions. There is a wildcard exemption that can be used for cash of 1,125. Also, there is a wildcard exemption for a Michigan homestead of 10,825, if you have no equity. Double if married filing joint.