It's a Biggie Bankruptcy needs to get filed due to MSJ and 1+ years of putting it of

[Pizza]

I would think dividing (1,700?) between 27 creditors may be insignificant.

Quick question, Money in checking account (only$200) can that be spent? what happens with direct deposit into checking? The bank is not a creditor and never used other than checking account purposes. Just didn't know if that $200 is a ward of the trustee and any future deposits.

All of it is insignificant in my personal opinion. A total of $1900 between 27 creditors = $70 per creditor BEFORE the trustee gets paid a percentage. Creditors won't be running in circles over such a paltry amount, and the trustee would rather be spending his time repossessing Hummers, timeshares, luxury homes, inheritances, million dollar business liquidations.... etc... than to pursue small assets that amount to little personal gain.

So while you must be prepared to lose it, it would take a real tough as nails trustee (with too much free time on his hands) to follow through with it.

[LadyInTheRed]

The money in your checking account likely needs to be used to live, right? I don't see why you can't spend it. We had over $4k in our accounts when we filed, but exempted it (CA has nice exemptions) so maybe we are in a different boat. Our lawyer never said we couldn't spend the money in our accounts.

It wasn't an issue because you exempted it. If you can't exempt it, the fact that you need it to live off of it is irrelevant if the trustee wants to go after it. $200 is hardly worth the trouble to send notice to the creditors to file claims. Hopefully, the trustee will agree.

[Pjmax]

I think I had about $800 in my account on filing day, but then, I didn't know when filing day was until I saw it on Pacer. I signed the papers weeks before. Anyway, no one ever asked about the money in my account. I don't think you have to worry about $200.

[Forthebirds]

The money in your checking account likely needs to be used to live, right? I don't see why you can't spend it. We had over $4k in our accounts when we filed, but exempted it (CA has nice exemptions) so maybe we are in a different boat. Our lawyer never said we couldn't spend the money in our accounts.

[professorkev]

First Niagara, I doubt I need to worry. Wish my attorney told me to keep my balanxce close to zero, damn it. I'm still taking it. :o) refund though I won't touch.

[Pjmax]

My bank is BoA. I didn't BK anything with BoA. My checking/debit/savings were not affected. There have been some here with Wells Fargo that reported accounts frozen or closed (can't remember.) It's been advised if you bank with WF - move your money.

Who is your bank? Others with the same bank can tell you their experiences.

[AngelinaCat]

The 60 days is not a matter of a backlog; it is part of the BK code, that gives your creditors ample time to file an objection with the court, against the discharge of their particular debt. If someone decides to wait and file on day 61, they are out of luck. In most instances creditors don't bother.

[AngelinaCat]

Technically the $200.00 is part of the BK Estate, but it is probably okay, though our attorney told us to have as close to $0.00 as possible on the day we filed. We were actually a little overdrawn so that was okay. I don't believe that such a small amount will trigger the trustee's interest.

The fact that your banking has nothing to do with any of your loans or credit cards, is also good. We had to reaffirm our auto loan and an overdraft protection loan with our credit union, if we wanted to continue doing business with them.

If your bank is on your mailing matrix to get notice of your 'Suggestion of Bankruptcy', then depending on their policies, you may need to go and talk with someone there if you want to keep the checking account.

[professorkev]

Another question; when do the trustees do their due diligence? is it before the meeting or after? I would assume beforehand they just take a quick look through then after the meeting they sift through it all?? just wondering why it takes 60day or if its more of a backlog issue.

[professorkev]

I would think dividing (1,700?) between 27 creditors may be insignificant.

Quick question, Money in checking account (only$200) can that be spent? what happens with direct deposit into checking? The bank is not a creditor and never used other than checking account purposes. Just didn't know if that $200 is a ward of the trustee and any future deposits.

[Pizza]

he made n.o mention of exemptions for it, but maybe that was the part where he said we had equity in the house. He also mentioned that it may not be taken depending how the trustee looks at it.

That sounds right, provided you have no "wildcard" exemption left over to exempt cash or same-as-cash assets such as a tax refund. The key is that you can't convert non-exempt assets (tax refund) into exempt assets (food, clothes, etc.) at this point. It is also true that the trustee and the creditors he is representing MAY not be interested in the money if it's too insignificant to divide up amongst them.

[professorkev]

he made n.o mention of exemptions for it, but maybe that was the part where he said we had equity in the house. He also mentioned that it may not be taken depending how the trustee looks at it.

Also, I included ebay negative balance and it shows in the schedule F as Ebay Mastercard Orlando Fl > does that sound right? I think it might be the wrong address to go to.
And Paypal shows Paypal Buyer Credit ElPaso Texas ; what up with that?

[Pizza]

also state did would lose my half of the tax refund I have coming in the next week or two and that I should not spend it. I thought you could spend it down on essentials? either way I won't.

Ouch. By any chance did you have enough exemptions to cover the tax refund? Is it listed? It is too late to spend it down, it's an asset of the estate.

[keepmine]

Once you've filed, the refund is property of the bk estate. Does not matter if you've received or not.

[professorkev]

FILED!!!!!!!

Well it's over and I don't feel any different. I will feel better when I get that discharge paper in August I hope.

Spent 3.5 hours in the Attorneys office. Spent one hour with attorney himself; he's really a good guy. due to most of my debt occurring because of "business" a side thing I side thing while unemployed at home. he stated this was the easiest method to go and more favorable. If I filed otherwise there may be issues with the means test; which we passed but questions could be raised. (I'm declaring single, not with my wife as it is all my debt)

He stated it may be looked at more closely with the US Trustees office as opposed with the trustee himself. So I should be prepared to present info upon request. He also mentioned the trustee office here are good people to work with who don't bust your balls.

also state did would lose my half of the tax refund I have coming in the next week or two and that I should not spend it. I thought you could spend it down on essentials? either way I won't.

So now what??