Regarding Direct deposit

[itcaughtup]

So I had my 341 on 6/10, my lawyer had advised me to stop my direct deposit prior to the my meeting, which I did. He has said that I can resume now but I wanted to double check with some people here as to any experiences or reasons as to why i shouldn't, thanks...

[AngelinaCatHub]

If you get a paper check and can cash it, "a bird in the hand"??? If you direct deposit can it be taken? I never stopped any direct deposit and I don't know why your lawyer would tell you that? To me, it looks bad to do and then restart in what looks like a safe haven? Ask your lawyer, I would be interested to know this answer too. 'Hub

[itcaughtup]

Ok, so the story he gives me is he doesn't want me keeping "a lot" of money in the bank until after I'm discharged, the problem is really a small one and a matter of convenience as far as direct deposit goes. He told me to go ahead and do it as long as I don't let money pile up in there, which I won't. Bow you have me thinking about stopping and starting, who if anyone would notice? US trustee?

[AngelinaCat]

We were told to have our account as close to a zero balance as possible on the day of filing, otherwise anything in there looks like an asset. We actually had a negative balance the day we filed. After that, 'Hub's pension arrived via direct deposit, and the SS arrived via direct deposit. Of course those items can't be touched anyway. My part-time employment (under $500.00) a week comes via direct deposit, as well as my unemployment from the loss of my full-time job comes that way. And we have been fine--so far. I note 'Hub's choice of avatar.

All our income goes toward food, utilities, and the gas.

I think your lawyer was concerned about the amount you would have in the account the day of filing.

Good luck.

[itcaughtup]

We were told to have our account as close to a zero balance as possible on the day of filing, otherwise anything in there looks like an asset. We actually had a negative balance the day we filed. After that, 'Hub's pension arrived via direct deposit, and the SS arrived via direct deposit. Of course those items can't be touched anyway. My part-time employment (under $500.00) a week comes via direct deposit, as well as my unemployment from the loss of my full-time job comes that way. And we have been fine--so far. I note 'Hub's choice of avatar.

All our income goes toward food, utilities, and the gas.

I think your lawyer was concerned about the amount you would have in the account the day of filing.

Good luck.

ah hah, I thank you for the input..

[Cali]

I was told to have as little as possible in my checking account the day I filed. I had 120$.
I am not letting a lot of money sit in my account until after my 341, which is in a little over 3 weeks. Direct deposit still goes to the account, but I take the money out and put it all in money orders. I pay my bills now with money orders.

[southernbelle]

I have mandatory direct deposit because my employer is 100% paperless. I never stopped my direct deposit, but filed the day before my next check hit the bank and had nothing in my account when I filed so it worked out okay. The Trustee only looked at what was in the bank the day I filed.

[sharonb801]

I was told to be as close to 0 as possible which was not difficult to do. I get direct deposit on the 25th of each month so we filed on the 24th. I checked my bank account the evening of the 24th and my pay had been deposited it has never been early. I am worried now that the trustee will get it and it is used for living expenses.It is weird though because the copy of my check says the 25th?

[CCBmama0f3]

Thanks for this thread...Now I have a couple of questions. We are planning of filing on April 1st. We are changing banks because our boat loan is with our current bank and since we are letting that go we don't want to be connected with them at all. I am scheduled to get paid again on March 31st. Since we are switching banks this check should be a live check due to the cancellation of my direct deposit. If we still file on the 1st and I wait two days after getting my paycheck to deposit until April 2nd would that look bad? Would the trustee see that I got paid on the 31st but yet no deposit in my account? Or should we just wait another week to file and spend that pay check on bills? Sorry for rambling

[tobee43]

Thanks for this thread...Now I have a couple of questions. We are planning of filing on April 1st. We are changing banks because our boat loan is with our current bank and since we are letting that go we don't want to be connected with them at all. I am scheduled to get paid again on March 31st. Since we are switching banks this check should be a live check due to the cancellation of my direct deposit. If we still file on the 1st and I wait two days after getting my paycheck to deposit until April 2nd would that look bad? Would the trustee see that I got paid on the 31st but yet no deposit in my account? Or should we just wait another week to file and spend that pay check on bills? Sorry for rambling

If you get a paper check and can cash it, "a bird in the hand"??? If you direct deposit can it be taken? I never stopped any direct deposit and I don't know why your lawyer would tell you that? To me, it looks bad to do and then restart in what looks like a safe haven? Ask your lawyer, I would be interested to know this answer too. 'Hub

we did exactly what hub did...we never stopped direct deposit. actually, and factually, it helped eliminate tons of paperwork for the trustee's office. our bank statement clearly represented a consistent in and out basis of the accounting of our expenditures. as a result, we were not asked anything about where our money was going because it was right there to be seen by all.

i also question why or what the atty's reasoning for this request with this OP? although, we know credit unions are notorious for nabbing funds as well as other banking institutions where you have i.e. credit cards...(the lender may attempt to grab a payment from your checking account)...or i.e. your car loan and your intent is to surrender. in some cases if you have loans with the bank that has your auto deposit you risk that sort of situation.

so i agree that it's a good idea for you to change banks. to be "safer"....i would wait another week or two certainly...why take a chance?