@341 mtng, Trustee asked some ?'s

[nosrus77]

I understand, since I had to cash in a 401(k) to live on until I could get my first paycheck 1 1/2 months later. But . . . we had $3,000 in withdrawals about 4 days prior to filing BK. She wants an explanation as to where the money went. Well, we've been living on cash, and I don't have a clue what we did with it. we didn't keep receipts. We did buy groceries, pay bills, and all, but all with cash.

Any ideas? What is the worst case scenario? Trustee asks for some cash, or sell some of our stuff?

[keepmine]

If you don't know where $3K went, you got ptoblems a bk can't fix.
You gotta handle your personal finances better than that.
Look through your check register and bank statements and see if you can piece some records together. Worse case, she may consider the cash as property of the bk estate and demand payment.

[freshstart06]

Okay, this is what can happen (a few people I met has similar problems, but I know each case is different) you will have to come up with some idea where the money went and tell them you paid cash for everything. If this is not good enough your trustee will put you on somekind of payment plan to pay back that money. You can still discharge but you may not close until you pay back the $3000, they will use that money to pay back some of your debt. I would think really hard where that money went, I can not guarantee that in your state they will give you the opportunity to just pay back the money in a payment plan.

Someone more experience that has gone through this can tell you if they are still active. they got this thing where you are still chapter 7 but you have to pay back some of the debt for up to a year. Not too sure how that goes but it is not chpt 13. I think you may find at least one situation if you read previous post. I know I am explaining this all wrong but someone can out there can explain this better. This information was confirmed by a lawyer I spoke to.

This is what they do to some people that are over the median but almost qualify for chpt 7 but do not qualify for chpt 13 due to changes in pay or health issue etc.

[SinkingFast]

Get yourself a little memo pad or notebook, and carry it around with you. You know how remembering things goes,............ If you're thinking hard about it, you can't remember. But if you relax your mind, and go onto other things in your life, what you want to remember will come to you. When it does, jot it down.

Call your utilities companies and find out what your bills were for the month that you possibly paid prior to filing. Rent/mortgage payment. Cable bill. Cell phone/land line bill. Get those numbers together and I'll bet you'll account for a bunch of the $3K.

Just explain that you'd taken a new job. It was gonna be however long before your first paycheck. You needed to pay X, Y, Z bills totalling $ABC. You also bought groceries, and paid << insert other living expenses >>. Whatever else you remember that you paid for.

Fresh gave you a good explanation of what to expect if the Trustee isn't happy with your explanation of where the funds went. Most likely, you'd have to pay the Trustee $3K. You might get a payment plan, you might not. Depends on the Trustee.

[JRScott]

Good advice up above .

Do what sinking suggests, sounds like a good starting point. Hopefully the Trustee will accept it.

See if any of the utility bills are laying around still. Maybe ask your landlord if you rent to give you a receipt for the money paid (he can probably check his records). If you can't find the utility bills you can go to them and ask about it, and see about getting receipts. Then you'll have to figure up how much you spent on transportation and groceries. You probably can make a best guess here. (Just figure up how much it costs to fill the tank(s) and then how many times it was filled in the time period, same with groceries figure out an average spent per week and then figure out where it went ).

Hopefully this all works out for you

[CATCHMEIFYOUCAN]

I paid the lawyer !

@341 mtng, Trustee asked some ?'s
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I understand, since I had to cash in a 401(k) to live on until I could get my first paycheck 1 1/2 months later. But . . . we had $3,000 in withdrawals about 4 days prior to filing BK. She wants an explanation as to where the money went. Well, we've been living on cash, and I don't have a clue what we did with it. we didn't keep receipts. We did buy groceries, pay bills, and all, but all with cash.

Any ideas? What is the worst case scenario? Trustee asks for some cash, or sell some of our stuff?

I guess it is too late to tell the Trustee you paid your lawyer with it ! ? ? ? That's what I told my Trustee when she saw I took a loan from my 401k for $1000 a month before filing.

They (Trustee) never ask, "How did you and where did you get the money for the lawyer?" You would think paying $2-$3 grand is a "preferential payment."

Just my thoughts and two cents !

Best of Luck, Catchmeifyoucan

Also, if you have relatives, friends - co-workers that you may have confided in - that bought anything with cash during the time you had the money, ask if they kept any receipts and if you could borrow them!

[nosrus77]

Thanks all. I know the $3,000 went for living expenses, nothing else. We did make a $500 payment to the lawyer with it, and some utilities, groceries for a family of six, house payment, etc. The thing is, I have no idea how much we had left on the day we filed, and I think that's what the trustee is asking. We'll just prepare a quick list and tell her the story and see what she says. We're still in the 60 day club, just with a question to answer. Not a big deal, I hope. Thanks for this board, too, it's been a life saver. . .

[Shalynn]

If you made a house payment, paid the Lawyer, utilities, and bought groceries, I bet that would make up the majority of the money spent. I could be wrong, but it seems like even if you had to pay some of it back it wouldn't be all of it if you can show some sort of documentation for the money spent.

It seems like the amount of the groceries could be estimated for your states guidelines for your family. Everything else you should be able to get receipts for.

Our Utility company lets you sign up so you can see your past bills, when you've paid, recent bills ect. I bet you have the same company, and can easily find it without even making a phone call.

Good luck. Glad your almost out of the mess.

PS If you don't mind me asking...how long of a wait did you have for your 341 mtg?

[nosrus77]

We filed on 6/11 and the 341 was 7/27. Last day for objections is 9/25, and I can't wait till it gets here.

Turned in my van over the weekend, a very sad and humbling experience. You see, the bank that held the loan was my former employer . . . OUCH. Really hurts the pride . .

[Shalynn]

We filed on 6/11 and the 341 was 7/27. Last day for objections is 9/25, and I can't wait till it gets here.

Turned in my van over the weekend, a very sad and humbling experience. You see, the bank that held the loan was my former employer . . . OUCH. Really hurts the pride . .

It sounds like your BK is moving pretty fast (although probably not as fast as you'd like). That gives me some hope. My attorney has all of my paper work now. I'm hoping to go make the first payment by the end of the week and get the filing done.

Oh, I'm so sorry about your van, and your pride. Hopefully, the worst is over for you.

Good luck!

[Blue_Ray]

Hey when going for your 341, do they setup a time and date for that meet?
I am just preparing to miss work excused and not excused for this when my time comes. Thanks.

[lrprn]

Hey when going for your 341, do they setup a time and date for that meet?

Yes. You'll get your specific 341 meeting date and time after your lawyer files (or you file) your bankruptcy case with the court.

You really need to be there at the assigned date and be there on time. Trustees get very cranky when debtors try to move this date if it's not a life-and-death emergency or if they show up late.

[desperation]

Hey when going for your 341, do they setup a time and date for that meet?
I am just preparing to miss work excused and not excused for this when my time comes. Thanks.

Blue Ray, you will get a notice in the mail from the courts (about 3 to 5 days later) after you file (at least in my district). On this notice it will tell you the time and the date of your 341 meeting. I took a vacation day from my job to make sure I showed up. Whatever you have to do... make sure you show up. I believe some BK courts will allow for extensions but it comes at additional cost, and you had better have a good excuse, or your case could be dismissed.

Hope this helps