Cash On Hand

[crazycat]

...Presuming you reside in a State that does not specifically exempt any "cash on hand".(or only exempts a small amount)....The "date of your petition filing" is the presumed date that the trustee will use to compare your petition information to your six months of bank accounts paperwork, etc...QUESTION:. Is this "day of your filing " date the initial date of the "rough copy" of the petition as given to your attorney, or the date you sign the "final" copy of the petition, or the date of the actual "court filing" by your attorney?....I ask to find out what people do in regards to "cash" balances in checking accounts etc. that is (temporarily) waiting to be used for non bankruptcy bills, i.e. telephone,mortgage,electric,groceries,etc...Or are people just using cash & money orders during this 1-2? week period (to avoid trustee seizures)...Thanks

[southernbelle]

My state has the worst exemptions. I had no exemption for cash on hand so I was told by my atty. that i needed to have as close to zero in my account as possible because just like he said, the Trustee checked for every dime available to have me repay it. The "day of your filing" is the date you sign the final paperwork and your atty submits the schedules electronically with the court. Mine happened the same day because I needed it all to happen the day before my direct deposit paycheck hit my bank account. If I needed, he said he could have put the date into his computer to have it done automatically on a certain date, but check with your atty and don't assume everyone has that same system.

The money sitting in your account waiting to be used is money up for grabs by the Trustee. If you don't use it, the Trustee won't make assumptions about how you planned to use it. I lucked out and ended up getting my Federal refund a week before I filed so I used that $3500 to pay the atty, stocked up on groceries and paid all of my bills like mortgage, phone, insurance for that month. I used money orders since I didn't want to worry about checks clearing and made copies of the money orders to show the Trustee where the money went.

You'd better believe she asked for those receipts at the 341 and I was the only one in a crowded meeting room she asked for receipts from. Just because my account had nothing in it and I received my refund so close to filing, she wanted to make sure I didn't hide that money under the mattress or something.

My advice based on experience, use the money on necessities (not luxury items) or prepare to loose it, and please keep your receipts.

[Phillymanhere]

I'm pretty sure the relevant date is the date it is filed and officially recorded by the court.

[JRScott]

It's the date that the petition is filed with the court.