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    Checking Account Balance

    Currently, we have $1000 in our bank account. We both get paid today and that will be about 8 or 900 more to put in it. I haven't filed my chapter 7 yet i will have the money by next week hopefully. anyhow, how much is to much in my account. Should i just cash the checks and hold onto the money or deposit it. We live in ohio and i am filing ch 7 soon i hope.

    #2
    Have you paid the lawyer yet?

    I would cash the checks then go get money orders (Wal Mart are cheap money orders). Keep receipts but make them out for bills that come due like rent, utilities etc.

    You want your checking account to have the least amount possible, under a hundred probably.
    May 31st, 2007: Petition Filed by my lawyer
    July 2nd, 2007: 341 Meeting Held
    September 4th, 2007: Discharged and Closed.

    Comment


      #3
      ok... i am filing by myself. i am engaged and he is not filing nor is any of the debt in his name. i had it all when we met so it is just in my name. so i am filing alone. what do you think about him opening an account in just his name and us using that and slowly use up the money in our other account until it is low and then file? i haven't paid the lawyer yet i will probably next week or soon after that. soon though, bill collectors are starting to bug me at work. i am almost afraid to answer my office phone anymore.

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        #4
        Hmm joint checking account and your not married. Filing Pro Se and only one of you filing.

        I think you should ask about the checking account in your free consultations. Make sure that his portion is safe before he deposits anymore of his checks in it.
        May 31st, 2007: Petition Filed by my lawyer
        July 2nd, 2007: 341 Meeting Held
        September 4th, 2007: Discharged and Closed.

        Comment


          #5
          i did mention that in one of my consultations and he just recently got laid off, which we knew was coming, and she said we don't have to worry about his income then since he wasn't working. it is only temporary but yes, right now, we have a joint account. does that matter? you know better than i..

          Comment


            #6
            Actually I'm single and don't have joint accounts with anyone. That's why I said you should ask in a free consult about it. Maybe someone else with a similar situation will post here. Sorry just not something I've experienced.
            May 31st, 2007: Petition Filed by my lawyer
            July 2nd, 2007: 341 Meeting Held
            September 4th, 2007: Discharged and Closed.

            Comment


              #7
              oh gotcha! hmmm... i am just worried about having to much money in there. so the day i file they look at my account and then what? will they go back and look at what i have spent and ask why i spent this much here or there?

              Comment


                #8
                Originally posted by JRScott View Post
                You want your checking account to have the least amount possible, under a hundred probably.
                This is something that varies from state to state and depends upon what exemptions are available to you. For example, in my state, you can choose between state and federal exemptions. Under the state exemptions here, you're limited to a few hundred for cash on hand and bank deposits. OTOH, my attorney says that if you choose the federal exemptions (which is our plan), you can use the full amount of your wild card exemption for money. One could potentially exempt over $10,000 in cash/deposits under the federal exemptions.
                "BK7 is not a fast-food combo meal."

                Disclaimer: I'm a lawyer, but I'm not your lawyer. ;-) Accordingly, this post should not be considered legal advice.

                Comment


                  #9
                  The above post is important. I have come across numerous suggestions implying that money in the checking account is automatically a goner. Not true. The federal wild card exemption and unused homestead exemption may be available to the filer, depending on the state he/she files under.

                  Comment


                    #10
                    I have two questions about this. I don't fully understand the reason for getting cashiers checks if you can still use your checking account to send out the bills or some of the bills. ?

                    I must be missing something which leads to my second question.
                    If you do BK, do banks sometimes, also close your checking account?..and this is the reason for getting cashiers checks?

                    Thank You in advance, much appreciated.

                    Comment


                      #11
                      Originally posted by Bandit View Post
                      I have two questions about this. I don't fully understand the reason for getting cashiers checks if you can still use your checking account to send out the bills or some of the bills. ?
                      If you have a little more cash in your accounts than you can protect with exemptions on the day you file, the safest way to reduce the amount is to take out the extra and convert it to cashiers checks and money orders to pay legitimate bills.

                      If you do BK, do banks sometimes, also close your checking account?..and this is the reason for getting cashiers checks?
                      Banks cannot close your account just because you file bankruptcy. You can take this worry off your list

                      What can happen is that if you have a credit card or an overdraft protection agreement at the same bank as your checking account when you file, if there is a cross-collaterization clause in the agreement, the bank can take money from your checking account to pay for the credit card balance or what may be owed in the overdraft protection. You can get the money they take back, but it takes time and usually a lawyer to make that happen.
                      Last edited by lrprn; 08-13-2007, 05:16 PM.
                      I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

                      06/01/06 - Filed Ch 13
                      06/28/06 - 341 Meeting
                      07/18/06 - Confirmation Hearing - not confirmed, 3 objections
                      10/05/06 - Hearing to resolve 2 trustee objections
                      01/24/07 - Judge dismisses mortgage company objection
                      09/27/07 - Confirmed at last!
                      06/10/11 - Trustee confirms all payments made
                      08/10/11 - DISCHARGED !

                      10/02/11 - CASE CLOSED
                      Countdown: 60 months paid, 0 months to go

                      Comment


                        #12
                        Originally posted by lrprn View Post
                        You can take this worry off your list
                        Thanks for explaining, lrprn and for answering my questions. As always, you do explain very well & I appreciate it.

                        Comment


                          #13
                          Originally posted by Bandit View Post
                          I have two questions about this. I don't fully understand the reason for getting cashiers checks if you can still use your checking account to send out the bills or some of the bills. ?
                          Money Orders and Cashier's Checks are much more important the closer you are to filing day.

                          If you write a check, it may take days, even weeks to clear. Meanwhile, that money sitting in your acct to back that check is fair game for the BK Trustee, unless you cover it with an Exemption.

                          If you use Money Orders and Cashier's Checks, the minute you buy them, the money is gone from your acct. No waiting for the checks to clear your acct.

                          It's a cash flow management tool to better control your bank acct balances on filing day.
                          Filed Ch 7 - 09/06
                          Discharged - 12/2006
                          Officially Declared No Asset - 03/2007
                          Closed - 04/2007

                          I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

                          Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

                          Comment


                            #14
                            It's a cash flow management tool to better control your bank acct balances on filing day.
                            I understand now. We would basicly just need to use money orders through that period, like maybe once or twice to make sure the cash is clearing right away so that it does not appear that there is more than what there really is.

                            It is good advice...I think I got it now.
                            Thank You, SinkingFast.

                            Comment


                              #15
                              Originally posted by SinkingFast View Post
                              Money Orders and Cashier's Checks are much more important the closer you are to filing day.

                              If you write a check, it may take days, even weeks to clear. Meanwhile, that money sitting in your acct to back that check is fair game for the BK Trustee, unless you cover it with an Exemption.

                              If you use Money Orders and Cashier's Checks, the minute you buy them, the money is gone from your acct. No waiting for the checks to clear your acct.

                              It's a cash flow management tool to better control your bank acct balances on filing day.
                              WoW, I had no idea about this. So a trustee can actually request money that's in your account? I mean how do they expect you to buy food, gas, etc...
                              NotFun
                              Filed: 10/31/2007
                              341: 12/05/2007
                              Last day for objections: 02/05/2008

                              Comment

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