Taking Assets

[roger_221]

When we file, our atty said they will look at what is in our bank account at the time and thay will be up for grabs. We want this value to be as low as possible. However, are there any guidelines as to how to handle this as to not raise a red flag?
For example, I have an insurance bill that I normally pay monthly. If I pay for the rest of the year, is that a bad idea?
I know you really can't pre-pay any creditors but isn't this different?

[cathywhite4495]

Check your exemptions according to your state (or federal if you have that option). It seems like your atty should be able to exempt some or all of your account. You also might be able to buy groceries or make sure you pay all your utilities right before you file. I would check about the insurance - I know you're supposed to claim any utility deposits you have. I'm not sure how they would treat insurance payments.

[freshstart06]

take the money out of the bank before you file and make money orders for your bills. the trustees usually only ask what you did with the money but if they want proof you will have it. Our previous landlord return our rent and he knew we wanted to file that friday but we took the money out and of course used it to pay for another place, and paid the security deposit in installments after filing.

[Lindsay]

I'd say buy a couple weeks worth of food and maybe pay all of your utilities ahead a month. That way you won't have to worry about paying them for a while afterwards. Fill up the cars with gas. If you have kids going back to school, you should probably buy their clothes and shoes now. I think that if you buy necessary things like groceries, gas, utilities, insurance payments, you won't have a problem. I think its probably a problem if you withdraw alot of cash or buy luxury items.

[CATCHMEIFYOUCAN]

Utilities Ahead A Month

I'd say buy a couple weeks worth of food and maybe pay all of your utilities ahead a month. That way you won't have to worry about paying them for a while afterwards. Fill up the cars with gas. If you have kids going back to school, you should probably buy their clothes and shoes now. I think that if you buy necessary things like groceries, gas, utilities, insurance payments, you won't have a problem. I think its probably a problem if you withdraw alot of cash or buy luxury items.

Word of caution, I live in the State of Virgnia. The utility company I go through (Dominion Virginia Power) automatically transfers any overpayments to what they call their "Energy Contribution Fund." So if you decide to pay your bills ahead of time, I would check with the company and make sure your "extra," money isn't being donated elsewhere! I had sent them $100 bucks to cover for at least 2-3 months. Come to find out the extra money went to their fund. I called them up and told them I did not authorize this and to give it back or apply to my future bills. I said I'm filing Bankruptcy I don't have "extra" money to contribute! The lady was nice, she said - don't overpay your bill because its automated and any extra money you send round to the nearest dollar, the computer will send to the fund.

FYI, Catchmeifyoucan

[SinkingFast]

We got notice on Thursday we were to come in the next Tuesday to go over our Petition and sign. We had a fair amount of money in the bank and a short amount of time to spend it.

I bought Money Orders for all the bills I had on hand. Filled up the cars. And went shopping.

We bought,......... Groceries. Big bundles of TP and paper towels. Soap. Jumbo, gigantic, economy sized laundry products. Tylenol. Ibuprofen. Light bulbs. Anything for around the house that would be needed that does not spoil.

Buy necessities and save your receipts. Especially if your bank balance is gonna shift a significant amount just prior to filing.

Just a personal note here,.......... And I may be way over paranoid, but,............. If you had always paid your insurance 6 months or a year at a time, it would not look suspect to pay that way now.

The Court likes consistency. Consistency in Charitable Contributions. Consistency in your spending habits. Erratic deposits and spending showing up in your bank statements can cause the Trustee to want to delve further.

[familyof7]

I pay my insurance 1 yr at a time so save your receipt and you would be fine

[JRScott]

Since you've always paid your insurance by the month I'd caution against buying it for the year now, the trustee likes consistency.

When's the last time you had new tires on the car? When's the last time it had a tune up? (Not been done in a while, time to do it, plus helps establish transportation costs )

When did you last go to the eye doctor? When did you last go for a check up with the regular doctor? Not been in a while go and spend the money there. (also helps establish medical expenses )

Also you can stock the pantry with non perishables (canned and dry goods, laundry soaps etc).

Just some ideas.

[CindyLou]

my brother's attorney told him NO NO NO on changing his insurance to bi-annual unless he changed companies. he said it would look suspicious and look like he was just trying to keep money from the trustee, but if he changed companies then he could say it was because of the change. Depending on our state, 6months may be the most you can get a policy for....