Filing question

[jlasky]

If we file and our checking account is $400.00, can the trustee take that money? When would they be able to take the money and how?

[CPO]

Check your state and the federal exemptions for "cash on hand" to see what is protected from the Trustee.

Whether you use your state or federal exemptions depends on the facts of your case.

Anything the Trustee seizes would be what was in your accounts that are not exempt and present the day you file.

CPO

[freshstart06]

worse case if they take the money and you don't have it anymore they will set up payment arrangements for you to pay it back. No biggie but it is always best to make sure the money is not available the day you file. We took our money out asap and paid for a rent on a new home, electric bills, groceries, you name it. You could also make prepaid money orders to misc bills the good thing about that is after filing your money is yours so for instance for some reason you end up not having to pay the "misc" bills the money orders that you made a copy of can be cashed back to you if you know what I mean.

[lrprn]

If we file and our checking account is $400.00, can the trustee take that money? When would they be able to take the money and how?

I see from your earlier posts that you live in Missouri.

Missouri exemptions = $1250 wild card which if you don't need it for anything else will more than cover your account's $400 from the trustee - http://www.bankruptcyinformation.com/MO_exemp.htm

Although it's stressful to think about what might happen, try not to make this harder than it already is. If you plan to use a lawyer to file, he/she can insure that your money is protected and you won't have to use money orders or cash before and after filing.

Hope this helps!

[jlasky]

We will be filing next week. I am curious how will they know how much money we have in the bank account? Right now its at $700 only. Is that good enough for MO exemptions?

[CityGirl]

I'm glad NY is 2500. .I wont have that anyway!

Oh and what if my car is upside down ( on the loan )
Can I keep it and make payments?

[CindyLou]

just remember, its NOT just about what the exemptions in your state are, its about what you also have listed on your schedules. So even if your state allows a wildcard and of 1200 that you haven't used but you haven't listed it to cover your checking account, then you checking account isn't covered. Make it easy and just don't keep any money over 25.00 for 30 day before you file and to be even more safe until after you 341. I wanted it simple and clean with no room for mistakes, so that's what I did. the month before i filed i started paper checks and then after my 341 i went back to direct deposit.

[CityGirl]

That's impossible Cindylynn.
I get direct deposit every 2 weeks in my bank account. There will be anywhere from $3000-$4500 in there the last month. If I got paper checks, how would I cash them anyway? LOL

[qwertysue]

If I got paper checks, how would I cash them anyway? LOL

Simple, take them to the bank on which they are drawn and cash them. Some banks will charge 5 bucks or so to cash them.

[CityGirl]

It doesn't work when your paycheck is drawn on a bank in Texas though.

[familyof7]

You could also use a check casshing company

[CindyLou]

also places such as Wal Mart will cash payroll checks for a flat fee rate that is reasonable.

[lrprn]

I get direct deposit every 2 weeks in my bank account. There will be anywhere from $3000-$4500 in there the last month.

CG, hubby and I both have paychecks auto-deposited every two weeks into one account. By planning ahead and paying bills early, stocking the kitchen, buying long-delayed clothing, doing a needed car repair, etc, we had less than $200 in our account on filing day. It can be done. But you have to plan it. It's not just going to happen on its own.

[SinkingFast]

also places such as Wal Mart will cash payroll checks for a flat fee rate that is reasonable.

Our Wal-Mart here cashes paychecks up to $1000 for a $3 fee. If you typically make more than $1K in a paycheck, Wal-Mart won't help you. You'd have to go to a check cashing place.

That's impossible Cindylynn.
I get direct deposit every 2 weeks in my bank account. There will be anywhere from $3000-$4500 in there the last month. If I got paper checks, how would I cash them anyway? LOL

Plan the timing of your filing. File on the last day of a pay period, if possible, when your bank balance can be its lowest.

Use Money Orders to pay bills so you don't have to wait for checks to clear. If the bill is too large to get a Money Order, such are rent or mortgage payment,...... Get a Cashier's Check from your bank. Save all your receipts and attach the MO stubs to your monthly bills.

We will be filing next week. I am curious how will they know how much money we have in the bank account? Right now its at $700 only. Is that good enough for MO exemptions?

You have to declare the $$$ amount on your Schedules. Personal Property you're protecting with an Exemption. And, in our Court here, we had to give our attny a printout of our bank acct up to the day of filing as proof of the amount we declared.

[JollyGG]

Plan the timing of your filing. File on the last day of a pay period, if possible, when your bank balance can be its lowest.

Check your exemptions if you plan to file on the last day of the pay period. My state has no exemption for pay earned but unpaid. Plus I only get paid once a month, so we ended up having to scamble for other exemptions to cover my first paycheck after filing once the trustee requested information about that paycheck. We would have been better off filing after I got paid and student loans, mortgage and car payments had come out. However, most states do have exemptions for pay earned but unpaid. Just check and plan accordinly.