Acceptable cash amounts to withdraw or write checks without raising red flags?

[diggy]

I've seen varying figures as to what the Trustee will question when going through your bank statements.

What are acceptable amounts to withdraw in cash or write checks from your bank account without raising red flags? Is it higher than $300? $400? $500?

Just curious.

I figure as long as I document all monies withdrawn and show where it goes with invoices/ receipts, I'm safe, right? It's not like I'm taking out $500 each day without reason or receipts to back it up.

[justbroke]

There is no magic number, and to tell you the truth, Chapter 13 debtors get much less scrutiny on withdrawals, deposits, and what their balance is on the day of filing.

Of course, they know you pay your rent/mortgage, you pay for utilities, etc. That's usually with a check so those are normal. If you are depleting a large balance, that may look odd, but again, they never said anything about my withdrawals or even mentioned my statements in my Chapter 13.

If you know where the money goes, you'll be fine... if there is even any inquiry into such.

[Ckacrum]

You no, I don't understand! Does the trustee look at your future statements or something?
I asked the paralegal if he was going to look at my previous one's at the 341 meeting, like many here say they do and she said no. I'm writing down everything she says so if she's proven wrong i'm calling her out!!!

[justbroke]

You no, I don't understand! Does the trustee look at your future statements or something?
I asked the paralegal if he was going to look at my previous one's at the 341 meeting, like many here say they do and she said no. I'm writing down everything she says so if she's proven wrong i'm calling her out!!!

Chapter 13s are treated much differently than Chapter 7s, even though much of the same Bankruptcy Code is shared between them! The reason is that a Chapter 13 is a pending bankruptcy that lasts for 36-60 months (in some cases shorter than 36 months). The majority feel is that since you're paying something back to unsecured creditors, there isn't as much scrutiny. That's why very few Chapter 13s get those ugly Adversary Proceedings regarding dischargeability. That's because the creditor is likely to get something in the Chapter 13 (based on the disposable monthly income).

[diggy]

There is no magic number, and to tell you the truth, Chapter 13 debtors get much less scrutiny on withdrawals, deposits, and what their balance is on the day of filing.

If you know where the money goes, you'll be fine... if there is even any inquiry into such.

That makes me feel better to know. All expenses are legit but am just afraid I will be put into the hot seat and having to explain every single check that is more than $300... utilities and household bills in NYC are more expensive than middle america so I would assume a trustee in such a city is aware of this and takes it into account, then again I could get someone who is having a crappy day. Just want to make sure my bases are covered.

[loveends1981]

Well I can tell ya this... We had to use our income tax money on items that were acceptable before we filed for BK. In March of this year, we took our income tax money and bought our first set of livingroom furniture. We paid $3,200 on it. After we got down to the certain amount of money we could have in our checking and savings together, we filed May 8, 2009. They of course needed the past 6 months of bank statements. We gave them what they needed and we were never questioned about the purchase of our livingroom furniture we made in March.