Depositing paychecks and immediatly withdrawing them?

[Epic]

Thank you for the link! Answers a lot of other questions I had! Yes, in my case it is in my best interest to stay in my home as I recently got my loan permanently modified to more than half of what my original mortgage used to be. It would cost WAY more to rent even a studio apartment in my area, plus I still get the property tax write off.

I have been keeping copies of my checks prior to cashing them out as well.

Thank you again folks!

[tobee43]

Do you have friends or family who would be willing to cash the check at their bank and give you the cash?

As far as having proof of what your income is/was, you could make copies of the checks before getting them cashed.

yes...that could work...and you'd still have your pay stubs and or the copies of the checks...also the court will be asking for your tax returns so that is also REAL claimed income.

however, if you are worried and want to protect your money, i agree...keep it out of the bank. i know there could be a 30 second window time period from deposit to them grabbing it, if there is a judgment sitting at the bank allowing them to put a lien against your checking account.

[keptdigging]

Please do some research... a lot of research on reaffirmation. It is rarely in your interest and isn't necessary to stay in your home. As for proving income for it... no... reaffirmation is a bankruptcy form. Lenders don't get to have requirements--you are simply reaffirming the original contract and they have no say.

But I was reluctant to even mention that because the biggest misconception I see on these boards is that people want to reaffirm their mortgage.

Here's a recent thread, started by a bankruptcy attorney:

http://www.bkforum.com/showthread.ph...very-bad-idea.

[doni49]

Do you have friends or family who would be willing to cash the check at their bank and give you the cash?

As far as having proof of what your income is/was, you could make copies of the checks before getting them cashed.

[Epic]

I had thought about doing this, since I am a 1099 Employee I just get regular hand written business checks and could easily cash them at the originating bank. However, I *used* to bank at the originating bank until I got a judgement at it got seized. Can I possibly go back and cash them there?


My biggest fear is not being able to show monthly income when the time comes to file. I am still learning (just ordered the Nolo book today), but they are going to want to see monthly income in order to reaffirm my mortgage - correct or am I mistaken? I only have one bank left in my area that I have not used yet...so my options are getting slim.

[tyson24]

I have to cash rent checks at US Bank (because my renters have bounced checks to me) and they charge me $5. makes me so mad!

[tcreegan]

Hi all,

When I go to cash a check on the bank it is from, they always want to charge me a $5 fee if I don't have an account with them.
This seems wrong to me, I can understand the $3 from Walmart but not $5 from the bank the check is drawn from.

Tom in Colo

[SunkShip]

If your checks are drawn on a local bank you should cash them there, you do not need to have an account to cash a check at the originating bank. (Or I would never take a check from my brother.)

If I had a judgment on my account my bank would not let me cash a check free and clear, because the pending charge would be sitting on my account and when I attempted to cash they check they would insist I deposit it so the pending amount would clear. (My bank is sticky about check cashing though, your experience my vary.)

If it is not a local bank then cashing at Wal-Mart or a grocery store with check cashing is your best option. Neither will let you cash hand written checks though, they must be printed payroll checks. (my experience- someone else may have other info.)

Would it help to get a new bank account at another bank? Or would the judgment just find it and go after the new account?

[tobee43]

You know the best way is avoid the deposit and just cash the check..If you get audited and they look at the statements it will not show up.

not really....since you have to provide your pay stubs...that's why we did auto deposit...it that was not only our bank statements, but it was also proof of our pay.

[wsy]

You know the best way is avoid the deposit and just cash the check..If you get audited and they look at the statements it will not show up.

[tobee43]

we did that for over 2 years....as soon as our money hit the bank...we withdrew it.....we had to, we left the state and had NO clue if someone got a judgment against us or not while we could not be served. the county we use to live in was notorious for allowing companies and others to get judgments while never serving the summons. so we knew we could be tracked interbank...with ss#'s so we would draw out asap.

the trustee never asked a word about what why or when.....

[momofthree]

thank you for the prompt responses. These are Company checks from a family ran business, Walmart will still cash those? They are 1099's. But don't I have to show monthly income to reaffirm my home?

You can always cash them at the bank that the check is drawn from. You don't need to have an account to do that, they withdraw the cash directly from the account, and so there is no chance of the check "bouncing."

[Dougie011]

I use a credit union and I can just tell them I want to cash my check and they do. I don't have to wait for my check to clear and I don't have any money in my account. I don't have any problems cashing my checks, do other places not due this?

[tcreegan]

Hi epic,

Just be able to document where the money went, we did just what you are doing and it was no problem.

For the house reaffirm, what will be needed will vary by lender, from what I have seen on the forum, most will just have you re-sign the original terms.

But why reaffirm? Usually not a great idea unless you have a low fixed rate or lots of equity.

Tom in Colo

[Epic]

thank you for the prompt responses. These are Company checks from a family ran business, Walmart will still cash those? They are 1099's. But don't I have to show monthly income to reaffirm my home?