Cash?

[filingin08]

DH and my checks are auto deposited. No way to change that - it's required by work.

We use our ATM card as a credit card for gas, groceries, etc. Question - should we make cash withdrawals and operate only on a cash basis?

Those of you that have a "pickle jar" bank how do you make deposits? Where do you cash work checks?

Hope this made sense. Thanks.

[qwertysue]

Prior to filing, we let the auto deposits continue but immediately (as in Friday mornings) would take out 95% of the cash that was in the account. We did change banks just prior to filing and cashed work checks on the bank they were drawn on.

IMHO, using cash only for a few months prior to filing (and using our budget from the plan we were submitting) really made it an easy transition. We're back to having auto deposits, and take cash out only for our discretionary money. Everything else stays in the bank. If we run out of discretionary money, too bad for us!

[ssdsco]

We use a debit card and bill payer service tied to our checking account. We reconcile the transactions against the budget every week. Retirement checks are auto deposited. We don't like carrying a lot of cash. Works well for us.

Just be sure your checking account is with a bank that you do not have any credit with and watch for any legal action that could result in creditors pulling funds from your bank account.

[filingin08]

My concern is our budget allows for annual type expenses for example - car/house repairs, property tax, etc. If the trustee sees a substantial amount of cash in the bank, won't they question it? For some things, I can see us living to the dime, other things, there is more wiggle room. Of course, our attorney hasn't reviewed yet nor has it been confirmed (or whatever the appropriate terms are).

[lrprn]

My concern is our budget allows for annual type expenses for example - car/house repairs, property tax, etc. If the trustee sees a substantial amount of cash in the bank, won't they question it? .

The trustee does not look at your bank accounts except when you file or if there's a strong suspicion of fraud after you file.

These once-a-year expenses should have been included in your expenses when you filed. Were they?

[shadowb]

We are newbies so bear with me. I am still unsure of how to handle the checking account. I see where it is posted that the trustee only looks at the bank account when you file. At the moment ours is pretty empty. Between the IRS levying one account, and then draining our other one to pay our CPA and the attorneys to help us with the Chapter 13...well the trustee might see $30.00 or so. Anyway, at what point is it safe to start using the checking accounts again? Like a previous poster, we use our debit card like a credit card to pay for groceries, gas, and whatever. We also had auto bill pay set up for some things. I get auto deposit through my employer, so I never have the cash on me. And since the IRS levied our other account that my husband was depositing his checks in, we were advised by our CPA and attorney to stay clear of that account till the Chapter 13 was filed and the IRS was stopped in their tracks. At the moment I stopped my auto deposit (again because of IRS and the filing), and plan to resume it when things are clear. Any thoughts or advice on this will be appreciated!

[stljohn]

We are newbies so bear with me. I am still unsure of how to handle the checking account. I see where it is posted that the trustee only looks at the bank account when you file. At the moment ours is pretty empty. Between the IRS levying one account, and then draining our other one to pay our CPA and the attorneys to help us with the Chapter 13...well the trustee might see $30.00 or so. Anyway, at what point is it safe to start using the checking accounts again? Like a previous poster, we use our debit card like a credit card to pay for groceries, gas, and whatever. We also had auto bill pay set up for some things. I get auto deposit through my employer, so I never have the cash on me. And since the IRS levied our other account that my husband was depositing his checks in, we were advised by our CPA and attorney to stay clear of that account till the Chapter 13 was filed and the IRS was stopped in their tracks. At the moment I stopped my auto deposit (again because of IRS and the filing), and plan to resume it when things are clear. Any thoughts or advice on this will be appreciated!

Sounds like your lawyer answered the question no? After you file the IRS won't be able to take money from the checking account.

[ssdsco]

We are newbies so bear with me. I am still unsure of how to handle the checking account. I see where it is posted that the trustee only looks at the bank account when you file. At the moment ours is pretty empty. Between the IRS levying one account, and then draining our other one to pay our CPA and the attorneys to help us with the Chapter 13...well the trustee might see $30.00 or so. Anyway, at what point is it safe to start using the checking accounts again? Like a previous poster, we use our debit card like a credit card to pay for groceries, gas, and whatever. We also had auto bill pay set up for some things. I get auto deposit through my employer, so I never have the cash on me. And since the IRS levied our other account that my husband was depositing his checks in, we were advised by our CPA and attorney to stay clear of that account till the Chapter 13 was filed and the IRS was stopped in their tracks. At the moment I stopped my auto deposit (again because of IRS and the filing), and plan to resume it when things are clear. Any thoughts or advice on this will be appreciated!

You shouldn't have to stop using your checking account unless there's some threat of a creditor raiding your account. You would want to manage toward having a balance in your account on the day you file that is covered by exemptions or your attorney tells you is OK. You may want to have a discussion with your attorney as to what bills you can pre-pay.

[aa06a47]

Trustee doesn't really care about your bank account except for the day you file. If you bank with a credit union, you should make sure there isn't anything in that account for them to get in the event you have a payment with them included in bankruptcy....they are notorious for taking the money.

[shadowb]

Have another question and thanks for the input so far

My husband just informed me about an hour ago that by the way, the cell phone payment is due which obviously we don't have because the IRS levied our account, and then it took my check and my husband's check to pay the attorney and CPA. And, now I am worried about my internet and phone coming due and that being cut off. I don't get a paycheck for the next due weeks. My concern is if my internet gets cut off, I can't work, and the payments to the trustee are supposed to be deducted automatically from my paycheck. I am in a situation in which I work at home via the internet. I thought I had read somewhere that there was something the attorney could do to prevent utilities from getting cut off. Is this correct? Should I ask my attorney about this. I know we are not talking electricity here (thank God we paid this last week), but again if Intenet goes out, no way for me to work.

[shadowb]

Also

So, does this nightmare get any better?

[rrockinggramma]

or call the phone company and work it out with them. Ususally they are willing to accept a post dated payment over the phone to keep your service on.