Withdrawals from bank account.

[optimistic1]

I am trying to figure out, just what will draw a red flag to the trustee when he looks at my bank statements.

The reason that I ask is because, I am needing to withdraw money to save for my attorney fees, and to set aside out of a savings account for paying the bills when my wife is on maternity leave. Also, I will need to purchase lots of baby items in the months to come.

How big of withdrawals will he be looking for, and, cant I just utilize cash back at the local stores to get the cash out rather than make ATM withdrawals at the bank?

[rrockinggramma]

I do not believe that the trustee looks at bank statements line by line. I do believe that they are looking at how much you have in the bank on the day of filing and whether or not there have been any large transfers just prior to filing. Yes you can take out cash when you shop using your debit card. Money orders to yourself might work also. But I would simply ask your attorney how much you are allowed to have in savings/checking before those red flags are raised. My attorney told us anything over 10,000 raised eyebrows. (eastern district/Michigan) I don't think the balances are as important in a chapter 13 as in a chapter 7 because you are allowed to keep your assets in a chapter 13.

[MJJ3767]

I know you are in Arizona as I am too. My attorney only questioned if I had made any purchases over $600 or paid out over $600 to any one person in the 6 months prior to filing. I was allowed to have $150 in my account the day I filed. The day after I filed, I put whatever money I had back in the bank. I questioned my attorney about when I could start making deposits again into my account, he said the day after I filed.

Keep in mind....I had NO idea that I was going to file Chapter 13 so there was no planning. It came out of the blue. I had made some large deposits into my account the 6 months prior to filing. On the day I filed, there was $150 into my account and I have never been questioned where the money went.

[chloe0724]

My attorney said that they only looked at bank statements for Chapter 7 filers. Our Trustee didn't even want them, said he had too much paperwork to deal with as it was.

[BKINAZ]

I was told to shoot for that $150 mark also...

Our Trustee didn't even want them, said he had too much paperwork to deal with as it was.

Really? Huh. Cool if true...any idea, I assume they do look at your tax filings (even if you are in good standing tax wise)?

[optimistic1]

Yes, that $150 is the state allowed BK exemption.

[Flamingo]

Red flags are certain withdrawals/checks over a certain amount and deposits made over a certain amount. That "amount" is usually determined by district. We had to provide (Chapter 13) one year's worth of bank statements and highlight/explain each and every deposit, withdrawal, cash advance or check written/taken out over $500. I still remember going over that information, standing at the copying machine and agonizing over the situation. Always provide what is asked for and be open and honest about everything asked for.

[atolar]

ya they told us on our 13 to keep it under $200 on the day we file and between we meet our trustee... and then after that it doesn't matter!!!

[chloe0724]

Really? Huh. Cool if true...any idea, I assume they do look at your tax filings (even if you are in good standing tax wise)?

I did have to provide 2 years woth of returns ( and I was current) and will have to provide them throughout my 5 year plan, along with any tax returns over $250.

[relief13035]

I was never asked for a single bank statement. Seems like everyone else had to provide statements except me. I'm not complaining, but seems odd to me.

[cindy02]

I was asked for 6 months worth of statments. The judge wanted to know everything about my bank-statements.

[optimistic1]

The judge or the trustee? I dont see why the judge would even care.

[MJJ3767]

The only bank statement I had to produce was the statement that showed my balance on the day I filed. I don't know if this is an AZ thing or not. (Go Cards!) I closed a bank account a week before I filed and opened a new one at the same bank. My attorney advised me to do this so a few automatic debits didn't come through. I never had to show statements from the original bank account. Ask your attorney what is going to be required.

[MacyJ]

The only bank statement I had to produce was the statement that showed my balance on the day I filed. I don't know if this is an AZ thing or not. (Go Cards!) I closed a bank account a week before I filed and opened a new one at the same bank. My attorney advised me to do this so a few automatic debits didn't come through. I never had to show statements from the original bank account. Ask your attorney what is going to be required.

It was the same for me (in Ohio). Just had to print off my online statement to show the balance the day of filing.

[TooMuchCredit]

Why do you have to keep the balances so low? If I file on the 1st, my pay from the day before will be there (paid on the 15th and last day of the month). I have to have several hundred in addition to the end of the month pay to get me to the next paycheck on the 15th as the mortgage and car payment all come between the 1st and 15th.