Do I need to be concerned with spending activity in my checking account?

[Strelok]

Hey guys,

I recently posted here about my concerns on having $2k in my bank account if I file in December. I have a new worry regarding my bank accounts as I am getting close to filing.

Since I will be a no-asset Ch 7 case, how much scrutiny will my regular checking/savings accounts face by the Trustee? I am really concerned about what kind of spending might raise eyebrows. Is there a limit to how much I can spend on an individual transaction (say I can't spend $300 on a single item)?

The thing is since I have stopped paying my creditors in order to save the money for the retainer, I now have much more cash than I am used to spending. I'm not a conspicuous consumer and because of my debt I have been living very frugally to make ends meet.

I won't have enough exemptions to cover the cash in my checking/savings account, and I have read on this forum to spend as much as you can before filing.

Besides taking care of any dental/medical work, auto maintenance on my car, stocking up the pantry with food, what other purchases can I make that won't cause a problem?

My stress has hit the roof lately and I've been eating out a lot, bought two new shoes, new bedding stuff, and work pants.

Am I free to spend my money on whatever I want? Or should I follow the spending budget I created for myself (I have about $100 in entertainment costs a month, $296 for clothes/shoes/household supplies/dental supplies/haircare/etc, $300 for food, $142 electronics/furntiture. This doesn't mean I spend say $142 a month in electronics, but its cash I put aside to save up for a purchase in that category).

Anyway I am just trying to put myself in the best position for bankruptcy and trying to limit what I can so there isn't an objection.

Thank you.

[bcohen]

Besides taking care of any dental/medical work, auto maintenance on my car, stocking up the pantry with food, what other purchases can I make that won't cause a problem?

You can buy clothing, towels, bed linens, blankets, stock up on personal care products, and other similar household items. Just don't buy anything which is considered a "luxury" such as expensive electronics.

[LadyInTheRed]

Also, don't buy anything that you will have at the time of filing and can't exempt.

As far as setting cash aside, you must report whatever cash you have on your date of filing as an asset, even if it is not in an account. If the trustee sees lots of cash withdrawals, he may ask what they were for.

Make sure all checks have cleared your accounts before you file. When determining and exempting cash in your accounts, you cannot deduct outstanding checks.

If you pay your car insurance in monthly installments, pay your current policy off in full.