cash on hand prior to filing

[sassiebaz]

I can't seem to find out what I need to with my student loan funds. They are just sitting in my bank account right now. If they aren't considered income, where do I keep this money? I'ts, like $3K

[njguy1972]

A couple of points.

It won't make a difference if you wait to file because of a bonus. Yes it will not show in your prior 6 months of earnings but you are also required to submit your tax returns. This means a 1 time bonus will show up for the trustee. It does not make sense to try and hide it.

As far as cash in your account, you need to work this out with your attorney. Since we have rent / mortgage payments and other regular bills, you may need cash on hand for these.

I personally had a bonus and tax refund. I am spending some of it for necessary items but after all is said and done I will have between 5000-7500 in my bank account when I file.

My lawyer and I are waiting on the senate to pass the bankruptcy mortgage bill since my condo is underwater with an ARM that resets in 2 years. Our hope is that the trustee can modify the mortgage so that the interest rate will not reset during the ch 13 plan.

[EricaCallaha]

NJGuy1972:

You have to be careful about how much you have in the bank the day you file because unless you can get your cash exempted, the trustee can and usually will take money in the bank on the day you file if you have a large sum of money sitting there. They don't care if you have checks pending against that money or if you just got paid. It is considered part of the bankruptcy estate and you could be at risk for losing it.

Just be careful...