Spending Money after filing

[bcoleman]

anybody know what the chances are that the Trustee will require bank statements and question recent transactions soon after filing?.........in my case i just got back my tax returns and economic stimulus, so for the first time since i can remember we can afford to go out and buy some clothes, and some other necessary household items that we've sorely been needing

my fear is that the trustee will be alarmed if they see (let's say $1K) worth of purchases within a few weeks or a month after filing...........the reality is that i just got this money and we have some things that need to be purchased........i'm also planning to pay for about $300 worth of plane tickets for a relative to visit

we are way below the median and my expenditures far exceed my income, i just happen to have gotten a chunk of money right at the time of filing..........will they be scrutinizing this very closely? will they even ask for bank statements? should i hold back on spending? any advice?

[TEW]

I asked my lawyer about my stimulus check that went to the IRS. She said there are no rulings yet in my district on them and there most likely will not be so they are ignoring them. There is noting to say you can not spend your money during BK. I have not paid anything except utilities in 3 months and bought tires cloths we needed and food. We also went away for a weekend so we didn’t both have nervous break downs.

[Pinkie86]

I have a question related to spending money before filing too - if I finish paying the balance on my Fiance's tux (we're renting it) for my wedding (which was already WAY in the works before my decision to file), do you think the trustee would say anything to me? Or should I wait until after my 341? It's only like $130 I'd be paying.

I'm worried that it would be seen as an 'unnecessary' expense.

[hnhlvr]

Pinkie,

Congrats on your plans to get married. When is the wedding and do you have any money set aside for that that? You don't need to tell me if you do have any funds, but if so, err on the side of caution and wait until after the 341 to pay off the tux so the thought of "wedding expenses" doesn't enter the trustees head. Would that person even care, I have NO IDEA, but it's better to be safe about them not thinking, "hmmm. . . how IS she paying for her wedding?"

[keepmine]

anybody know what the chances are that the Trustee will require bank statements and question recent transactions soon after filing?.........in my case i just got back my tax returns and economic stimulus, so for the first time since i can remember we can afford to go out and buy some clothes, and some other necessary household items that we've sorely been needing

my fear is that the trustee will be alarmed if they see (let's say $1K) worth of purchases within a few weeks or a month after filing...........the reality is that i just got this money and we have some things that need to be purchased........i'm also planning to pay for about $300 worth of plane tickets for a relative to visit

we are way below the median and my expenditures far exceed my income, i just happen to have gotten a chunk of money right at the time of filing..........will they be scrutinizing this very closely? will they even ask for bank statements? should i hold back on spending? any advice?

If you've already filed and can't exempt that refund, the trustee is very likely to want it. I'd not spend anything until you know you can keep it.

[Pinkie86]

Pinkie,

Congrats on your plans to get married. When is the wedding and do you have any money set aside for that that? You don't need to tell me if you do have any funds, but if so, err on the side of caution and wait until after the 341 to pay off the tux so the thought of "wedding expenses" doesn't enter the trustees head. Would that person even care, I have NO IDEA, but it's better to be safe about them not thinking, "hmmm. . . how IS she paying for her wedding?"

I had to use my wedding funds to keep me and my fiance afloat while he recovered from his back injury, so I dont have anything set aside. I'm a no asset Ch. 7. Thankfully I was able to buy wedding items here and there before my filing. I have just about everything i need; just need to finish paying for the cake and his tux.

I'm getting married in October, so there's plenty of time to still pay for his tux our of our checking account.

Thank you for your very sage advice, I greatly appreciate it. I'm so paranoid when it comes to spending ANYTHING nowadays.

[AngelinaCat]

The $130 is so small--relatively speaking--that it should not raise any flags. I would use cash though.

Congratulations on the marriage!!!

[AngelinaCatHub]

OK, I’ve got to tell you about our wedding. My second Mrs. Cat’s first (and only) wedding. We wanted it to be quiet and cheap. We were married on the square in Edgefield S.C. in front of the Confederate statue. The Judge was quite old, and forgot the words. My wife and I standing on the sidewalk and the Judge on the other side of the walkway. While in the middle of lost words, a couple walked between the Judge and us who were holding hands and Mrs. Holding a flower. The Judge piped up and yelled to the couple who passed between us; “do that again you two, and you’ll end up married”. We broke up and all who were near us were laughing at the senile Judge’s quick response and obviously funny remark. It was great. ‘Hub

[soleprop]

anybody know what the chances are that the Trustee will require bank statements and question recent transactions soon after filing?

My trustee has requested bank statements and paystubs that show from filing date to 341 meeting date.

[No Gravy]

My trustee has requested bank statements and paystubs that show from filing date to 341 meeting date.

That's good to know, thanks. I wonder if that's why a lot of people time their filing around the first of the month? That's when I get my bank statements.

[Pinkie86]

That is such a great story!!! I've always thought it important to have a good story. Thank you two for the advice.

And thank you Mrs. Cat for the congratulations! He's my high school sweetheart - we would have married before this, but we were waiting for our anniversary to fall on a Friday or Saturday so we could get married on that day. We're getting married October 24, 2008, our 6th anniversary.

We're doing a justice of the peace ceremony, but having our reception at the same place we had dinner the night he proposed to me, which was also the night of our Junior Prom.

I am so sorry OP, I am officially done hijacking your thread!

[momof5]

anybody know what the chances are that the Trustee will require bank statements and question recent transactions soon after filing?.........in my case i just got back my tax returns and economic stimulus, so for the first time since i can remember we can afford to go out and buy some clothes, and some other necessary household items that we've sorely been needing

my fear is that the trustee will be alarmed if they see (let's say $1K) worth of purchases within a few weeks or a month after filing

If this money is not exempt in your paperwork you best not touch it. Especially if it is in between filing and your 341. The trustee probably wont question your individual transactions but may question the fact that you received a tax refund and stimulus payment. Many of us here actually delayed filing so we could spend our stimulus and tax refunds knowing that it would become property of the Bankrupcty estate. Others who could not wait had to give up those checks. There are still others who have had to wait on rulings by their district regarding stimulus money.

This is not an area where you really want to just take a random guess at. Please talk with your attorney.

Also most of us have had to bring a bank statement with us to our 341, showing our balance as of the date of filing. Many Trustees ask to see it and many do not.

Edit to add: We were also waaaaaaaaaay below the median and our expenses were waaaaaaay more than our income. Unfortunately the trustees have no sympathy as far as that goes.

[bcoleman]

If you've already filed and can't exempt that refund, the trustee is very likely to want it. I'd not spend anything until you know you can keep it.

well i exempted an amount in my checking account using the wild card exemption that is above and beyond what i had at time of filing and higher than it will be throughout this whole process, so i'm thinking it won't be a problem...........also we are easily below the means test and have no property that isn't exempt, i have nothing......so considering this do you really think there is a chance they'll go after my refund?

[Joe Farmer]

My suggestion is that why would you go through the ordeal of filing, then chance a grave error with spending that money? can you really not wait until the dust settles to see what happens?

[momof5]

well i exempted an amount in my checking account using the wild card exemption that is above and beyond what i had at time of filing and higher than it will be throughout this whole process, so i'm thinking it won't be a problem...........also we are easily below the means test and have no property that isn't exempt, i have nothing......so considering this do you really think there is a chance they'll go after my refund?

None of this really matters. There are specific areas that exempt tax refunds/stimulus. I really would not just deposit and hope. Thats risky.

Again, there is no way to know if your Tax refund/Stimulus will be wanted by the Trustee. Your means test means nothing as far as this asset.

Dont risk your entire Bankruptcy. Talk to your attorney.