get cash out of bank w/out raising eyebrows?

[echofoxtrot]

My stupid lawyer told me, one week prior to filing, that I would have to "get rid of" the cash in my bank account. I deposited $6000 into my IRA account, and can pre-pay rent on my new place. That will still leave about $2500 in my account, that I would like to "protect".
Does anyone have any ideas how to legally do this? Thanks very much.

[justbeach03]

There's a "sticky" on this. but prepay insurance, get medical checkups- stock the fridge and pantry...any "living expenses" you'll need for the next few months that can be bought now.

[echofoxtrot]

Thanks very much, justbeach.

[justbeach03]

quite welcome- It should actually be rather easy to "blow" through the $2500 on "living expenses- no luxury items though! If u "need" a vacuum, clothing for you...get it. I wouldnt recommend going on a crazy shopping spree..S P R E A D it out and just make sure it's stuff that will get you by during the filing process.

[LadyInTheRed]

Does your car need tires? shocks? Annual maintenance?

[tinfoilhat]

My stupid lawyer told me, one week prior to filing, that I would have to "get rid of" the cash in my bank account.

What he should have said is one week prior to filing you should have under $xxx.xx in the bank.
You can't just blow a bunch of money and file a week later.

If you had $8500 in the bank he should have said come back in 6 to 10 months when you've got it down to under $100.

And still the trustee is going to look at the bank statements that show where it all went.

[MsNeLaw]

Be ready to prove where you spent that money, too! Keep all your receipts.

[drowning123]

Oh no. Transferring $6,000 to an IRA will be a red flag with the trustee. Correct me if I'm wrong people.

[readytofile]

$8500 is a WHOLE lot to spend right before filing. My guess is that they'd want to know how come you have $8500 cash yet can't pay your bills. I had to explain where the $300 went that I got from selling my camera(it went to buy groceries when I had none).

[wnguyen]

drowning123

Depends on when that transfer occurred. From what I know, if your transfer was beyond 90 days, then it would be fine. Also, it also depends on your history of contributing to IRA. If you did it every year before or the year earlier, then it's OK with the trustee. If you transferred it shortly before filing, the trustee may think you're trying to hide asset.

[HHM]

Oh no. Transferring $6,000 to an IRA will be a red flag with the trustee. Correct me if I'm wrong people.

A debtor may take advantage of exemptions. So transferring funds to an IRA on the eve of filing is not, per se bad. If the amount transferred is more than the allowed amount each year, that could be a problem.

But, as was pointed out, you will need to account for the money.

Is there any reason you cannot wait to file?

[cspa522]

I'm in the same situation you are. If we stop paying our mortgage, our 2nd, and our credit cards before/during the filing process we're going to be flush with cash at the time of filing. We are prepared to use some of the money for new tires for my car (badly needed), new windshield wipers for both cars, new faucets for our moldy/leaking ones in the bathroom and kitchen, and school/fall clothes for my kids. But that still won't really take care of all of it.

Trying to decide if I pay my home owner's insurance and auto insurance up for the rest of the term if that will raise flags?

[drowning123]

I'm in the same situation you are. If we stop paying our mortgage, our 2nd, and our credit cards before/during the filing process we're going to be flush with cash at the time of filing. We are prepared to use some of the money for new tires for my car (badly needed), new windshield wipers for both cars, new faucets for our moldy/leaking ones in the bathroom and kitchen, and school/fall clothes for my kids. But that still won't really take care of all of it.

Trying to decide if I pay my home owner's insurance and auto insurance up for the rest of the term if that will raise flags?

No casinos nearby? Go gambling.

[cspa522]

No casinos nearby? Go gambling.

As my husband always jokes, "We'll double it at the casinos!"

YEAH RIGHT.

[skhan66]

I had 12000 in my bank account . I disclosed this amount in my BK . Told my lawyer to protect it and Filed BK, it still remains in my bank after Discharge.