Depositing a LARGE check after filing????

[rustymich]

Hell if I had it Id try to deal with the creditors to stay out of this mess...

[newbie2]

ok - let me ask the question in a different way then. Lets say i file on Monday and i dont have the check yet and then 1 week from then i get a check for 15k from a friend. Is that still bank fraud? and more importantly will that mess up anyting with my case?
Please understand i am not trying to commit any crimes. I am just curious here and really need answers because i could really use the money and if i can get it after i close i could se it to pay people back i have borrowered money from to get me through hard times

You keep trying to throw out scenarios about how to hide this money from the trustee. It was an asset the moment that your friend owed it to you. It is still an asset. It has to be declared on your petition either as an asset or as cash on hand. Please don't ask us to help you figure out how to hide it from the trustee.

[free2breathe]

i have an attorney. i dont think my question is being read right. i just want to know in general if after you file for chapter 7 and in between the time you file and pending a discharge if you deposit a large check - will that come back to haunt you witha trustee ORRRR after you file whatever happens happens and its no big deal?

The trustee in our case DID ask for bank statements that included the date the bankruptcy was filed as well as statements that included the 30 days between the filing and the 341. Also, on the date of your 341, the trustee will ask you if the petition is true and complete, and if anything has changed. No matter how you try to look at it, this $15,000 check is going to be an issue if you don't have exemptions to cover it. Everyone here is giving good and accurate advice, no matter how you ask the question.

It doesn't always seem "fair", but it is what it is in bankruptcy.

[justbroke]

Unless you have some great exemptions, that check would be property of the Bankruptcy estate. Des explains it in such detail, that I can only shake my head if you don't review the excellent advice provided in this thread.

[Peeps]

I recently finished my 341 meeting and lemme just say... trustees are better than bloodhounds at picking up a scent. I watched several people get nailed before my case was called. Many people tried to slip something by her and it appears no one was successful.

If you have a check for $15k, it is an asset. You're required to disclose it.

If you anticipate getting a check for $15k, it is a pending asset (an account receivable). You're required to disclose it.

If you try to claim you didn't know a $15k check was on its way to you (per your hypothetical example), well, the trustee will likely find that very hard to believe. A blip like that in your finances would be hard to slip by unnoticed.

You could take your chances and hope the whole thing passes without scrutiny. If your trustee is even half as good as the one I saw in action recently, things could get ugly very fast. Hypothetically speaking, of course.

[despritfreya]

To jman:

You apparently just do not get it and have not disclosed that you are holding a check (or are owed $$) to your attorney. The simple truth is that each of the responses above are correct and, if you file bk without DISCLOSURE, DISCLOSURE, DISCLOSURE and fail to turnover the asset (unless you can find an exemption) you will most likely lose your right to a discharge and, if the Trustee gets pissed off enough, find the FBI on your doorstep.

Whether or not you are holding the check or, prior to filing, have given the check back, this is what you have:

Right off Schedule B:

Except as directed below, list all personal property of the debtor of whatever kind. Type of Property:

1. Cash on hand - If you are holding the check that is the same as “cash on hand”. The asset is listed here.

OR

16. Accounts receivable. - If, before filing, you gave the check back, your friend now owes you $$. That is an “accounts receivable” and is listed here.

___________________________________________

Bottom line. You can try to manipulate the way you ask the question. You can try to change the scenarios. It simply does not matter. You either have cash in your hand or a receivable. If you do not want to lose control over the asset, do not file bk or, at least file a Chapter 13. And, just be warned, if you decide not to disclose your attorney is not going to take the heat for you. He/she will withdraw as you were not truthful and you will be searching for an attorney who takes over troubled cases in an effort to do damage control - that, by the way, is what my Firm does more often than not - damage control due to some debtor who either wants to game the system or simply does not listen to advice and gets caught.

Whatever. . .the choice is yours.

Des.

[helpmeout]

Again, you will be asked if anyone owes you any money. You are under oath. You will have to say 'Yes'. Theoretically, the trustee can then go after that money to get it for the BK Estate, to pay your creditors. You know this money is owed to you, and you KNOW that a check will be coming shortly. If you answer 'No' to that question, then you will have perjured yourself.

On a similar note, you will also be asked if you are expecting to inherit anything within 180 days.

Now, a totally unexpected windfall, such as winning the Lottery--that money is yours and you can do with it whatever you like.

He already has the check. So it's no longer money owed, but cash on hand.

[AngelinaCat]

i have an attorney. i dont think my question is being read right. i just want to know in general if after you file for chapter 7 and in between the time you file and pending a discharge if you deposit a large check - will that come back to haunt you witha trustee ORRRR after you file whatever happens happens and its no big deal?

Again, you will be asked if anyone owes you any money. You are under oath. You will have to say 'Yes'. Theoretically, the trustee can then go after that money to get it for the BK Estate, to pay your creditors. You know this money is owed to you, and you KNOW that a check will be coming shortly. If you answer 'No' to that question, then you will have perjured yourself.

On a similar note, you will also be asked if you are expecting to inherit anything within 180 days.

Now, a totally unexpected windfall, such as winning the Lottery--that money is yours and you can do with it whatever you like.

[helpmeout]

i have an attorney. i dont think my question is being read right. i just want to know in general if after you file for chapter 7 and in between the time you file and pending a discharge if you deposit a large check - will that come back to haunt you witha trustee ORRRR after you file whatever happens happens and its no big deal?

Your question is being read right. I think the problem lies with you not understanding the answer.

Let's make it simple, you are going to have a problem with the $15K check regardless of when you deposit it as it is part of the BK estate.

[AngelinaCat]

It is beginning to sound like you don't have an attorney?????

It is beginning to sound like that to me too. And having that money in hand, or having it owed to you, is probably going to make you an 'Asset Case'.

[jman]

i have an attorney. i dont think my question is being read right. i just want to know in general if after you file for chapter 7 and in between the time you file and pending a discharge if you deposit a large check - will that come back to haunt you witha trustee ORRRR after you file whatever happens happens and its no big deal?

[helpmeout]

ok - let me ask the question in a different way then. Lets say i file on Monday and i dont have the check yet and then 1 week from then i get a check for 15k from a friend. Is that still bank fraud? and more importantly will that mess up anyting with my case?
Please understand i am not trying to commit any crimes. I am just curious here and really need answers because i could really use the money and if i can get it after i close i could se it to pay people back i have borrowered money from to get me through hard times

Let's just say you didn't have the check and got it a week later.

The money that your friend owes you IS AN ASSET OF THE BK ESTATE. And any payment of money owed to you on the date of your bk estate that you receive MUST be reported to the Trustee. And if you don't have enough exemptions to cover it, then you will have to hand it over the Trustee.

And all of those friends that you owe money to need to be included in your creditor matrix.

It is beginning to sound like you don't have an attorney?????

[discouraged]

I still say yes. As you've read, the 15k would have been a receivable when you filed and should have been included on your documents. I'm not certain why you would chance it. We are all in desperate straits or we wouldn't be filing bankruptcy. We all need money or we would have been able to pay our bills.

I'm cringing because I thought my case was being filed on the 4th and went on a spending spree (it was a spree for me anyways - a whopping $142 at Fleet Farm and buying a new mattress for $185) and my case wasn't filed until Monday and I feel as if I should have to explain, even though I know to others it may seem piddling, to me I hadn't spent that much money in a long, long time. And yet, I cringe when I think the trustee may think I'm throwing money away while filing for bankruptcy.

[AngelinaCat]

One of the questions you will be asked is: "Does anyone owe you any money?" You are under oath to tell the truth.

[jman]

ok - let me ask the question in a different way then. Lets say i file on Monday and i dont have the check yet and then 1 week from then i get a check for 15k from a friend. Is that still bank fraud? and more importantly will that mess up anyting with my case?
Please understand i am not trying to commit any crimes. I am just curious here and really need answers because i could really use the money and if i can get it after i close i could se it to pay people back i have borrowered money from to get me through hard times