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    #1

    Bank Statements/Business Paperwork

    Well tomorrow is my day I go back to my attorney to give her everything she requested! Time to start this process! I want to save my house as I am in active foreclosure at this point! I have about $700 DMI after my expenses with about $25000 in unsecured debt, $11K mortgage arrears...

    Need some quick assistance with your experiences!

    I have been told to bring my bank statements from the past 6 months. Well my husband is a small business owner and will not be filing with me BUT because my name is on that account I have to bring those statements. AND because we don't have a personal checking account due to a payday loan mess in 2005, I have been using this account for everything! (I know this is bad for business but we don't have a choice). Well he is one of the most slack business owners I know! Looking at the statements, it almost looks like we have money but don't! What do they look at specifically on the statements?
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    #2
    Originally posted by justbaby View Post
    Well tomorrow is my day I go back to my attorney to give her everything she requested! Time to start this process! I want to save my house as I am in active foreclosure at this point! I have about $700 DMI after my expenses with about $25000 in unsecured debt, $11K mortgage arrears...

    Need some quick assistance with your experiences!

    I have been told to bring my bank statements from the past 6 months. Well my husband is a small business owner and will not be filing with me BUT because my name is on that account I have to bring those statements. AND because we don't have a personal checking account due to a payday loan mess in 2005, I have been using this account for everything! (I know this is bad for business but we don't have a choice). Well he is one of the most slack business owners I know! Looking at the statements, it almost looks like we have money but don't! What do they look at specifically on the statements?
    If you can you should prepare a spreadsheet that can help explain the business expenses versus the personal expenses that are coming in and out of that account.

    The trustees look for deposits and withdrawals on the bank statements. It's going to be difficult because you use one account for both business and personal. Try your best to go through the statements and document what was for personal use.
    Filed Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
    I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions.

    Comment

      #3
      I will try to do that but will that hurt me at all? Clearly you can see on the statements the deposits vs credits and we always end up at the same point each month. Even though on a few of the statements we have a significant balance, that money goes rather quickly! My husband is a driver and he has "cover" employees to pay and they prefer to be paid with cash.

      I just spoke to the paralegal and I think she said that I will need to only submit the filing date statement. Does that make sense? We will see how it goes tomorrow..will they NOT allow me to file due to bank statement discrepancies?

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        #4
        What is a cover employee?

        Did you know that your entire household income will be used even if only you file?

        The attorney does need to see your bank statements in order to give you appropriate advice. Because your husband has a small business, your file will be more complex than with just a W-2 type employee filing.

        Your expenses need to be very, very detailed since you also need to account for the business expenses. Are you part of his business? Do you have an ownership interest?
        Filed CH 7 9/30/2008
        Discharged Jan 5, 2009! Closed Jan 18, 2009
        I am not an attorney. None of my advice is legal advice in any way..

        Comment

          #5
          He uses a cover employee to get a day off. Like a substitute driver...

          No I did not know that. He hasn't made an income in the past year. So that would be easy! He buys a butt load of fuel weekly, pays for a very expensive truck, etc. She told me to bring all of his bills but because he's so laxy daisy about his stuff, I have NO CLUE as to where those are. I will try to take all I have though. All I know is...at the end of the day, we are in financial trouble and at risk to lose our home and we don't want that to happen!

          No I am not a part of the business. Just him!

          Comment

            #6
            The attorney will need to see at least six months of your statements because you have been using the business account for your personal expenses.

            Remember, the attorney is your advocate so he/she needs the information to formulate a plan that will work for you.

            It sounds like you are talking about not have any money left over to pay all of your bills, but that you actually have funds being deposited into the business account (gross revenue). The Trustee looks at the gross revenue. You need to prove up expenses. It is complex because you are mixing personal and business (not unusual but difficult in this circumstance).

            The fact that your name is on his business account brings his business into your BK. Of course, the revenue would be included anyway because he is part of your household. You will need to discuss with your attorney the appropriate way to handle this account. Make sure to mention all the accounts with your name on it. Also mention the accounts your husband may have separately from you.
            Filed CH 7 9/30/2008
            Discharged Jan 5, 2009! Closed Jan 18, 2009
            I am not an attorney. None of my advice is legal advice in any way..

            Comment

              #7
              Well I will do just that...let my attorney handle it! That's why she's paid anyway! I just pray she knows what she's doing especially with the complexity of the statements. We will see what comes of it all...

              After EVERYTHING is calculated, my income (since my hubby doesn't have any), I have approx $700 DMI.

              I'm just ready to get it started and on the road to financial repair!

              Comment

                #8
                On a side note - have you tried getting a bank account of your own lately? Its been a while since 2005, and there are credit unions and others now that don't always go by prior banking records. No harm in trying, and if you could open one it might help you with your fresh start.
                Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
                (In the 'planning' stage, to file ch. 13 if/when we have to.)

                Comment

                  #9
                  My goal after all of this is to get a personal checking account just for myself. It is a pain in the rear end having to try to keep business/personal stuff separate. We have a couple banks in my city that offer Second Chance Checking accounts that I will consider. One being, Woodforest Bank inside Walmart.

                  Thanks for the advice as I KNOW with having a fresh start, I can breathe alot better without having a foreclosure lingering...

                  Comment

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