Withdrawing cash to pay bills

[justbroke]

"Large" withdrawals are a concern for the Trustee. However, as mentioned several times, just keep receipts! Having a receive helps to document where the money went. The Trustee is only trying to ensure that you didn't take cash out of the bank and "stuff it in a mattress" or otherwiwse try to "hide" the money.

[keepsmiling]

Do what you need to do and keep receipts and don't sweat it. You aren't expected to give up eating and paying utilities. If you are questioned, you'll give honest answers and it will all be ok.

[footballfan]

Along the lines of "large withdrawals," if I withdraw a lump sum of about $2000, and pay my truck, car, qwest, natural gas and auto insurance with that money (using money orders), will that large sum withdrawal draw suspicion?

Along those lines, what are some good suggestions for using some of the leftover paycheck? I thought about a huge grocery shopping trip, but I also need to somehow set aside gas money for the next two weeks, to the tune of about $450.....

suggestions? Thank you!

[justbroke]

As mentioned, so long as it's honest and can be easily identified, you will not have any problems. The Trustee is really looking for "large" withdrawals. i can't define "large" but some Trustees have questioned anything over $200 while others have only asked about things over $1,000. In any event, they do understand that you need to pay bills and that many people are on a cash basis by the time they file bankruptcy.

Drawing down your account is important! There have been several posters here on BKforum that had "pending" checks on the day of filing and the Trustee didn't care. I mean, the Trustee didn't care about the pending checks and wanted the money in the account!

Best of luck to you.

[Freddy03]

I was told not to have a certain amount in the bank at time of filing. So I withdrew our paychecks and paid bills with money orders. Nothing was ever questioned.

[footballfan]

Exactly what I was thinking. Thanks!

[chrisdfw]

I'd do it, but get the money orders and send them in an keep copies to avoid the suspicion you are sitting on the cash. Keep the receipts and copies.

[footballfan]

Filing Ch 7 tomorrow.

Both my and DH’s paychecks were direct deposited today.

Would I be raising red flags if I were to withdraw cash in the amount of my truck, car, natural gas and phone/internet/cable bills, and then get money orders to pay for those?

I don’t want to have big balances in the checking accounts tomorrow, and if I pay online today, they most likely won’t clear until Monday/Tuesday next week.

Thoughts?

I’d ask my attorney, but after a less-than-desirable telephone conversation with attny assistant yesterday, I’m hesitant to do so.

Thank you!