Trustee and bank statements

[KKAB]

I received a letter from the trustee saying to bring copies of my bank statements for the month of filing and 1 month after. Will he actually look at these? When can I deposit my student loan check and have it be safe? We don't have an attorney and I just don't want to be drilled over there being a high deposit in my account.

[FreshLikeADaisy]

KKAB, yes, he will look at the statements.

I think you will need to provide more info on the "student loan check" before anyone could give you a straight answer, though. Is it a loan you applied for and received? Is it a refund? Is it something else? It doesn't matter so much whether you deposited it or not, it matters more what the money is, where it came from, when it was issued (NOT cashed) and whether it is exempt or not exempt. You may be worrying about nothing, actually.

But trying to hide funds from a trustee, who gets paid according to how much he can recover, is never a good idea. Keep that in mind and be willing to amend your schedules if necessary: a late declaration on your part is far better than none. Good luck!!!

[KKAB]

The is a subsidized student loan that I applied for in January. I received the remaining amount this month after paying my tuition for the spring semester. (We filed bk on the 11 of April). We have no exemption for cash in my state, but I can always send this check back if it is going to get taken away from me. It is a government loan and not dischargable so I'd hate for them to use it to give to creditors!

[FreshLikeADaisy]

A non-dischargeable student loan is not, to the best of my knowledge, counted as income for the sake of calculating the bk estate. But to be honest, this might be where you want to use one of those free atty consults, because if you did deposit the check and the trustee *thought* it was income, you might have to prove its origin anyway.

I hope someone else speaks up on this, because even though I honestly think you're safe, I do not have specific knowledge on how student loans work in bk and I don't want to mislead you at all. But in any case, if you do deposit the check soon, make sure you make a copy of the check and keep good records, just in case you have to prove it's not income. Good luck!!!