How to spend paycheck quickly before filing question.....

[momof5]

I've been searching through the forum for the past couple of hours and I did find many threads about using money orders so that the money is out of the bank the day you file.

My question is this... Is it okay to withdraw an entire two week paycheck and then pay bills using money orders and use cash for groceries etc..?
Do I just need to be able to prove where hubbys paycheck went? Will withdrawing such a large amount look bad or obvious that we didnt want to give the trustee an entire paycheck. We are filing 7.

Payday is this Friday and we should be filed by next Wednesday so there isnt much time to plan this. Its not a huge amount but more than $500 and less than $1000. We need to be below $50 as that is what was on our original paperwork.

Thanks in advance for your help.

[Cali]

I am interested in knowing the answer about w/drawing a large amount.

I want to file on the 1st and that is one of our paydays, so the amount in the bank is going to be a lot.

[TX Bluebonnet]

Payday is this Friday and we should be filed by next Wednesday so there isnt much time to plan this. Its not a huge amount but more than $500 and less than $1000. We need to be below $50 as that is what was on our original paperwork.

I'm going in for my review on the 27th and part of the instructions I received from my attorney (via a letter confirming the appt) is to bring the "current bank balance as of your appointment date." So my impression is whatever bank balance amounts were entered on the pre-filing paperwork get modified/updated at the time of review/filing. Could that be the same in your case and if so you wouldn't necessarialy have to spend down your account to below $50?

[Cali]

My attorney told me that the amount that matters is the amount that is in the bank the day you file. And you don't subtract checks that you have written.

We have a lot of money in the bank on paydays, so I will have either file before we get paid or a week after we get paid.

[momof5]

I'm going in for my review on the 27th and part of the instructions I received from my attorney (via a letter confirming the appt) is to bring the "current bank balance as of your appointment date." So my impression is whatever bank balance amounts were entered on the pre-filing paperwork get modified/updated at the time of review/filing. Could that be the same in your case and if so you wouldn't necessarialy have to spend down your account to below $50?

We will need an actual ATM slip on the date of filing. Outstanding checks do not count as that money will still show. The trustees look at exactly how much money you had the date of filing.

Just trying to figure out the best most efficient way of spending down any balance within a few days. If you find anything out Cali can you let me know? Thanks so much!

[justplaintired]

This is an interesting thread. I was worried about this too. We have DH check direct deposited each week. We are still not sure how to work this out. So, if I understand you get an ATM slip on the day you file? How in the world does that prove anything? I am totally confused. So, would it be better for that month to take out DH check the day it deposits so we keep our balance low? Ofcourse until the checks are deducted it looks like we have money, but once it's out, we look "poor". Won't they wonder why you took out so much cash? I can do money orders I guess, but I pay all utilities online. I sure hope we work this out right when the time comes. I will watch this post to see how others have handled keeping their accts. low the day they file.

I wonder would it work to withdraw the cash a few days before you file and then add the funds back into the acct to cover bills? Is that ok? We use our checking acct for everything now since we no longer have cards. Will that be something that would cause the trustee a problem?

[momof5]

We use our checking acct for everything now since we no longer have cards. Will that be something that would cause the trustee a problem?

We do also. I am really hoping someone knows something about this. I dont want to withdraw my husbands paycheck (he only gets paid every 2 weeks) only to be questioned later as to why so much money was withdrawn so close to filing and then be required to come up with the money to give the trustee.

I will have half of our mortgage payment and will NEED that. This is really a hassle.

[keepmine]

Look at old bank statements and find the date that the balance is typically the lowest and then, time your filing for that day.
Go ahead if you need to and withdraw money and use it for money orders to pay bills if you have too. As far as an explanation-nothing wrong with the trusth. All you're trying to do is simplfy the process to help your trustee verify your bank balance as of the filing date by showing the exact bank balance of filing and then, show the receipts for the money orders that show who got paid.

[Cali]

I didn't know we had to have an ATM receipt on the day we file.

Money comes out of our checking account at different times, never the same each month.

DH gets paid 1st and 15th, and our bank balance then would be way too high. So I am thinking of taking out all the bill money I need and buy money orders and then my account will be low. I do have bills I pay via bill pay but not on automatic payment, so I can send in MO's.

[leftyf]

Ask your attorney to wait for your balance to drop before filing. That's what I did. He had it all ready to go and I called and gave him my balance when it was at an appropriate level ($750 or so in my case.) I think that'll work.

[TX Bluebonnet]

The trustees look at exactly how much money you had the date of filing.

I understand that. What I meant was do you really need to spend down to below $50? Did your lawyer say you needed to have so little in your checking account, or do you just think it needs to be that low because that's what you entered in your preliminary paperwork? For example, as another poster mentioned, they're okay to have $750 in their account. I'm sure a lot depends on your location and circumstances and of course what your attorney recommends. I'd just be a shame to spend down so low if you truly didn't have to.

[Cali]

I am not the OP, but my attorney told me we should have 100 or less in the account when filing.

I understand that. What I meant was do you really need to spend down to below $50? Did your lawyer say you needed to have so little in your checking account, or do you just think it needs to be that low because that's what you entered in your preliminary paperwork? For example, as another poster mentioned, they're okay to have $750 in their account. I'm sure a lot depends on your location and circumstances and of course what your attorney recommends. I'd just be a shame to spend down so low if you truly didn't have to.

[momof5]

I am not the OP, but my attorney told me we should have 100 or less in the account when filing.

This is pretty much what I was told as well.

[TX Bluebonnet]

I am not the OP, but my attorney told me we should have 100 or less in the account when filing.

This is pretty much what I was told as well. .

Oh, sorry to hear that.

Right now I can only think of a couple ways for us to lower our checking account balance beyond the normal monthly bills:

Our auto insurance company allows us to split our 6 month premium (approx $800) into 2 payments. We paid on the 1st half just a couple weeks ago, but we're going to go ahead and pay on the 2nd have before we file.

The other one is to order more propane for our tank, which would come to about $150. (The same would apply if someone had other types of fuel tanks, like for kerosene or whatever.) We'll also be filling up our car and truck and a couple of gas cans for the mower. That's probably another $100 or so.

Oh, I just had another "lovely" thought. We bought this house a year ago and it has a septic tank system. Maybe I should look into getting that cleaned out or whatever it is they do with those things.

[JRScott]

The Trustee can call up bank records and many do actually ask for them, so yes he'd likely discover any large withdrawal. He would likely question it.

However that doesn't mean you'll get in trouble. If you've not paid the month's bills yet go ahead and get the money and then go and pay the utilities, groceries etc. Make sure to keep receipts.