Bank account withdrawals

[Confused14]

Is it ok to withdraw money from your bank account many times after you file? Since I was told to stop paying my cc's and other debts, I have that extra money in my bank account. Can I simply withdraw it and just leave it at home or should I leave it in the bank? I don't know if it looks bad that I withdraw all the time. Do they inquire about that or question what you did with it if they ask for recent bank info? I don't want there to be too much where I can have it taken away. I believe my attorney said I can only have a total of $2500 between accounts and that on the day of the 341 meeting, not to have more than that. If I don't withdraw, I'll be over that amount. Please help, thanks.

[Pinkie86]

Personally, if you have terrible luck like me, I've had a lot of things come up that my extra money is going toward.

My Brakes/Roters had to be done today - $307.97. Then next month I have to switch Car Insurance - that'll be around $270. Plus I've been paying for my dental work, getting my dogs their Sentinel (flea and parasite prevention med).

It's funny how I had so many little things I needed to take care of but didn't realize it because of the debt.

I also splurged on myself and got a personalized t-shirt for me to wear at the beauty salon and setting up stuff on the day of my wedding and on my honeymoon.

(It's a long sleeve black t-shirt that says:
"Mrs. (My New Last Name Here)
10 - 24 - 08" in Pink rhinestones. )


But I digress! My point is - take care of little things you've been putting off. Or, keep receipts of what you spend the cash on...just in case.

[jessegirl]

When I go food shopping I take out an extra 50-100 cash everytime. I go this a few times a week. If my food bill is high then I onlt take alittle if I low , like just a few items I hit it for 100.00 They cannot tell that you are taking cash back . When its shows on your statement it just so up as the food store where you purchased from.

I get nervous about the same thing. Cause you don't want the trustee to say "boy that have quite a bit of money left over now, lets put them in a chapter 13". So I totally know where you are coming from.
I just stopped paying my charges about 1 months ago coming up on the second month, so I am really trying to pay the attorney now, which is a hefty 3600.00. Yeah I know its alot.. But alot less then what I would be paying if I continued without the BK7.

[Confused14]

Thanks for that. I was actually not going to spend it, just hold it. I don't have much I need to get right now. All the expensive stuff has already come up, such as dental checkups, (I don't have dental insurance), back to school stuff and lots of doctor appointments. My son has 2 cavaties (wrings neck) which will be filled in september, so I can use some towards that!

Just dont want anything questioned, yet I dont want them taking it!!

[liz417]

Hi,
I agree with Jessegirl, take a little out each time you go to the grocery store. Put it in your sock drawer and just save until this is all over.

Good Luck!

[Cali]

The only money I took out of my bank account was the money for bills. And I used money orders just in case they needed to know where the money went.

Jessegirl - if they ask for receipts from the grocery store they will see that you got cash back.

[ssdsco]

If you have cash on hand when you file and don't declare the money in your BK filing that's fraud.

Have extra cash.......spend it on basic living expenses before you file. Keep the receipts.

[Mark80]

How far back do they check your bank statements and what kind of things can cause you not to get a Chapter 7?

Is this an issue "after filing" waiting for discharge, or years before?

Thanks!

[ssdsco]

How far back do they check your bank statements

It varies. Could be years. Let's say the trustee sees a $300 ATM withdrawal 3months before filing that you can't explain. That raises a flag so he goes back another 3 months and again sees an unexplained $300 ATM withdrawal. Now he's very suspicious and decides to do a financial strip search for many years back. Something like this is rare but could happen.

[Mark80]

So lets say they check 6 months ago and see that I took my wife out to dinner for our Anniversary. Is that to insignificant to worry about or do they rake you over the coals on things like that, or just unexplained large cash movements?

[ssdsco]

So lets say they check 6 months ago and see that I took my wife out to dinner for our Anniversary. Is that to insignificant to worry about or do they rake you over the coals on things like that, or just unexplained large cash movements?

Basic living expenses including an occasion dinner out shouldn't be a problem. The trustee is looking for hidden cash or hard assets he can sell. If he smells smoke he'll look for the fire. Sounds like you're overly concerned.

[Confused14]

That sucks. I actually have a few things that need to be paid before my 341 meeting, such as my daughters dance class, my son's dental work and my son needs new glasses (don't have insurance for that) so I will have receipts for those withdrawals. But I will put some back. I actually took some out because my mom needed to borrow from me, but afterward, she said she didn't need it, gotta love that. Thanks guys!

[AngelinaCat]

We were told to have our bank account--actually a CU--as close to a zero balance as possible on the day we filed. It actually was a negative balance. We filed the statement along with the rest of our paperwork, and that was that. The Trustee never asked anything about the account or cash flow, or anything like that at the 341.

I wouldn't worry about it, unless the attorney has given you specific instructions. He/she will probably know what type of quirks your Trustee has regarding these matters.

[WoodSprite]

We were told to have our bank account...as close to a zero balance as possible on the day we filed. The Trustee never asked anything about the account or cash flow, or anything like that at the 341.

I wouldn't worry about it, unless the attorney has given you specific instructions. He/she will probably know what type of quirks your Trustee has regarding these matters.

RE: the zero balance, me, too, but I think (at least in NY) the amount of cash you're allowed to have depends on whether or not you're exempting a house as well.

My income was so woefully inadequate to cover even my basic expenses that the trustee didn't make a peep about the paltry cash flow I had lost so much sleep over... but I agree with SSDSCO that they've probably got a pretty good instinct for sniffing out anything dishonest. So if you're not actually hiding anything, I say trust your attorney and worry about something else instead.