question...chapter 7, assets, bank account

[zipped22]

My husband of 12 years decided that he wants to be single again, so we are separated. I found out some extremely shady finanacial things that he had done. Before I even considered BK, he stopped paying our mortgage, so my father gave me enough for 2 months' of payments after my husband left, roughly $5000. I opened up a separate bank account when we became separated and deposited the money in there so that he wouldn't have access to it. I paid 1 month mortgage and realized that I was going to have to file for bankruptcy. (Almost $70 grand in debt that went 100% into my husband's business, but I cosigned on years ago. Young and stupid.) So I still have about $2500 in my "secret" bank account.

I met with a bankruptcy attorney but didn't mention the other account. He said I would only be allowed $1000 in assets as I need to stay in the house until it is foreclosed. I only work part-time and I'm desperately looking for a new job, but I'm finding it very difficult right now. Now that I'll be paying rent for an apartment by myself and my kids, I'm going to need money for a deposit, etc.

Can I close this account and keep the cash? Will the trustee have record of this account? I haven't filed for BK yet, but I know this will look fishy. I kept this money secret from my husband and now I'm afraid it will come back to bite me. Do I tell the attorney that I have this money and give it up?

Thanks for all of your help.

[BKParalegal]

You have between today and whenever you file to spend the funds. Here is an idea, use the funds to pay your BK attorney, or just pay some bills with it, like $1000 worth of groceries, or put new tires on your car. Spending the money shouldn't be that big of an issue.

Good Luck

[ready2puke]

Since it was already in an account and not your "sock drawer" yes you would have to show where the money went and get it spent...I know how scarey it is to not have any extra cash for emergencies so start saving some cash...jmho...