Cashing a check at a bank..

[aberham]

I'm in chapter 7 right now and have already filed the bankruptcy papers. I still have to gather all my credit history stuff for the last 2 years before I'm done. Already had the meeting of creditors. My question is I have a check for $4600 that has been sitting on my desk for 5 months. I am going to open a checking account and I'd like to CASH it, not deposit it. How will this be treated by the bankruptcy court? My understanding is that it shouldn't be recorded as long as I cash it and it is under $10,000. The account will be a joint account with another person. I just want to get the money so that I don't have to worry about the check going bad. I'm afraid that the court will see this somehow and ask where the money is. Does anyone have any advice about what I should do or if this will raise red flags? I've been told not to worry about it and to cash it but don't deposit, and i've also been told that it could alert the court.

[BKOnce]

1) Personal Check ==>> Make sure if that person who signed check still have enough $$ in it, or the account/funds still open/existed/available before cashing!?

2) Business/Commerce check ==>> Make sure if the expiration date (as shown on check face) still valid and current before cashing !?

[familyof7]

can you just cash it at the bank the check was written on

[HHM]

Technically, you are committing BK fraud...the asset exists when you get the check (not when you cash it), and in this case, you got the check before filing BK. So basically, if the trustee ever found it, you would have to turn the entire amount over to the trustee and face possible...well, let's just say, worse things.

As a practical matter, the check is likely no good, if it is any type of business check, those are usually only valid for 90 days. As has already been suggested, if you do decide to cash it, you probably need to check with whoever gave you the check to see if the funds are still there.

[Logan]

I just cashed a check yesterday at the bank of issuance. There are also check cashing businesses that take a fee.

[aberham]

Technically, you are committing BK fraud...the asset exists when you get the check (not when you cash it), and in this case, you got the check before filing BK. So basically, if the trustee ever found it, you would have to turn the entire amount over to the trustee and face possible...well, let's just say, worse things.

As a practical matter, the check is likely no good, if it is any type of business check, those are usually only valid for 90 days. As has already been suggested, if you do decide to cash it, you probably need to check with whoever gave you the check to see if the funds are still there.

It is a check from a stock account that I had. Not a business check or work check.

[Logan]

Bummer. What credit history is the trustee requiring? you said a 2 year history...can you elaborate

[familyof7]

Did you report that you had the stock account funds or used to have what bank issued the check on that stock acct you should be able to go there

[twuoo]

Most banks have a maximum amount they can even give you with cash on hand I think. For instance, my bank posts that they can only give out a max of $800 that day.

[aberham]

Bummer. What credit history is the trustee requiring? you said a 2 year history...can you elaborate

Past 2 years of the accounts that I listed on the bankruptcy forms. I had the stock account for like 3 weeks and didn't list it on the bankruptcy forms. I may just have someone else I know deposit it in their account and then give me the cash or something. I don't want to screw myself and it appears that maybe I already have slightly. The check is good until early July so I need to figure something out. Does anyone know how the check cashing companies work? I know they charge a lot for cashing a check but some money is better than no money. I'm not 100% counting on the funds from this but it would be a huge help if I can figure out a way to safely secure them.

[BKTango]

I have never heard of a trustee asking to see the past two years of credit history. Are you talking credit reports or actual credit card statements?

If the trustee is asking to see the past 2 years of your credit card statements on accounts you listed....I would think that would mean they are already looking way deep into your case. I agree with HHM it doesn't look good. You will more than likely lose that money, and that's not even the worse that could happen.

[HHM]

Don't do anything...you are already in "technical" hot water in that you have failed to declare an arguably non-exempt, substantial asset that would be part of your BK estate and if you have had your 341 meeting, you have lied under oath.

In that regard, your best course of action at this point is to do nothing until after your case is discharge and hope to ride out your BK without the Trustee finding the account. (To be honest, the trustee probably won't find out...they don't routinely, externally investigate cases...trustees generally rely on the information you give them, and then simply try to find problems or discrepancies with that information.)

The request for 2 years of credit card statements etc, is not common...but its not unheard of...it means one of two things. Either, your case was randomly flagged for audit (bad luck I suppose), or that there is something in your petition or circumstances that has raised the interest of the trustee and the trustee now wants to see some more information to either substantiate or alleviate his suspicion.

[Logan]

2 years history sounds like they're trying to see if you hid money. Any stock account should reflect in your taxes so until the 1st of the year would make more sense.

As far as the check...good luck...

[desperation]

Good luck on cashing it at a check cashing place....If it's 5 month old check then most likely they will refuse and give you 100 reasons for why they are not able to cash it.

[juststupid]

Past 2 years of the accounts that I listed on the bankruptcy forms. I had the stock account for like 3 weeks and didn't list it on the bankruptcy forms. I may just have someone else I know deposit it in their account and then give me the cash or something. I don't want to screw myself and it appears that maybe I already have slightly. The check is good until early July so I need to figure something out. Does anyone know how the check cashing companies work? I know they charge a lot for cashing a check but some money is better than no money. I'm not 100% counting on the funds from this but it would be a huge help if I can figure out a way to safely secure them.

We have used a check cashing place and they didn't charge too much I think it was like $8 but I am sure every place is different.

Have you told your lawyer about this money? And does he know you did not mention the stocks - even if you just had them for 3 weeks. I would seriously call and talk to them about it, because you don't want to go spend that money and then have your trustee learn about it and want it.