Cash in bank accounts

[Dis0314]

the day I filed I was supposed to have $85.00 in my bank account but my mortgage payment never went through so now my filing date shows $2300.00 and if I understand correctly, in Texas money in banks are not exempt?

My creditors meeting is in 3 weeks and I'm wondering what happens now? I know I take my bank statements etc but do I have to come up with all that money that I didn't really have because it was really for mortgage?

[bcohen]

Has the mortgage payment been processed by now, so the money is no longer there? Most trustees are not going to bother you over the difference between the money being taken out on the day before filing vs. a few days later, especially if you can show that the money is going toward a secured debt or necessary expense such as rent/utilities.

In fact, although you are required to bring 2 months of bank statements to the 341 meeting, it is entirely possible that the trustee won't even ask for them. My trustee never asked for any of those documents, not only from me, nor from any of the people who went before me. He just asked us to affirm that the information on our petition and schedules was correct and true, and that each debtor had personally reviewed the documents before submitting them.

[avengers]

In fact, although you are required to bring 2 months of bank statements to the 341 meeting, it is entirely possible that the trustee won't even ask for them. My trustee never asked for any of those documents, not only from me, nor from any of the people who went before me. He just asked us to affirm that the information on our petition and schedules was correct and true, and that each debtor had personally reviewed the documents before submitting them.

Each trustee is different. My trustee eventually asked for an entire year's worth of bank statements and 5 months of credit cards statements.

Luckily for me, those additional statements actually bolstered my case for BK (the CCs were closed and in collections and my banks statements were showing less than $1000 income per month).

[LadyInTheRed]

The trustee can take the non-exempt cash and bkforum members have reported the exact same thing when a check hadn't cleared. So, I would start with the assumption that the trustee will insist you come up with the cash, even though it is possible he won't.

In Texas you are allowed to use Federal Exemptions instead of state exemptions. Do you know which you used? Check Schedule C to see whether state or federal law is cited in the 2nd column. Federal Exemptions do include a wild card exemption of $1,225, plus $11,500 of any unused homestead exemption. Depending on what your other assets are, federal exemptions may be a better choice. You may be able to amend your schedule C to use federal exemptions instead of state, or if you already used federal exemptions, to exempt the cash if you still have some wildcard available. Call your attorney to discuss this.