Bank account "true" balance vs checkbook

[happy_ira]

Hi all. I filed my Ch 7 and have a 341 coming up in a few weeks. At the time of the filing, my checkbook balance was $72 considering the checks I had written. However, because some checks were not yet cashed (a "timing" thing), the balance shows as higher. For instance, the mortgage check had not yet been cashed by the mortgage company. Needless to say, this makes my bank account statement on that date look much higher, but it is incredibly misleading to say I have loads of extra cash laying around.

What happens if I get asked for my bank statement and the Trustee says "Hey, looks like you have plenty to spare?" That's just not fair. Any thoughts?

Bear in mind, I try to time (down to the day!) when I mail utility bills and so on so that I don't have a negative balance in my checking account. So, I end up overdue sometimes.

Any thoughts on this subject? Surely this has come up many times with others.

[PoorGrammyinBK7]

I don't think its fair either, but according to my attorney, if the money is in there on the day of filing (even if there are outstanding checks), it is part of the BK estate. I guess that is the rule. So if you can't exempt it, you may have to pay that back to the estate.

[happy_ira]

I don't think its fair either, but according to my attorney, if the money is in there on the day of filing (even if there are outstanding checks), it is part of the BK estate. I guess that is the rule. So if you can't exempt it, you may have to pay that back to the estate.

Most ridiculous rule (even though it may very likely be the law).

However, I believe there is a $5,000 exemption for personal property we are allowed (New York)? So, if there was cash of $4,999 and no other assets, I would be safe, yes?

[TEW]

did you also give the lawyer copies for the register? My online statement showed I have 4k in the account but I have 3700 in checks written.
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[BKParalegal]

Even if the money is pledged and you are not in a wildcard exemption state, the trustee can and most likely will seize the funds, if it is over $500 or so.

[happy_ira]

did you also give the lawyer copies for the register? My online statement showed I have 4k in the account but I have 3700 in checks written.
.

I haven't given him yet--so far my atty has only asked for 6 months of paystubs and 2 most recent years tax returns. Obviously, I will provide copies of bank stmts and my check register to my attorney and the Trustee. (I keep my check register in Excel, so it would be fairly easy to print out.) I hope the Trustee would take the "written" checks into account, but I understand *in theory* why he wouldn't.

[happy_ira]

Even if the money is pledged and you are not in a wildcard exemption state, the trustee can and most likely will seize the funds, if it is over $500 or so.

Yikes. Is New York a wildcard state?

[BKParalegal]

If you are not claiming the homestead exemption, you get $2500 cash exemption per person, $5k per couple

[happy_ira]

Even if the money is pledged and you are not in a wildcard exemption state, the trustee can and most likely will seize the funds, if it is over $500 or so.

I just checked my balances. As of the date I filed my amended ch 7, I was about $2500 over the amount listed on my personal property schedule. So, it sounds like he could claim the $2500. That would suck. On the other hand, I would happily pay $2500 and have all my credit card debt of $150000 wiped out. No brainer trade-off. Yes?

[happy_ira]

If you are not claiming the homestead exemption, you get $2500 cash exemption per person, $5k per couple

Ah!! I am filing by myself, and I am not claiming the homestead exemption (my mortgage is WAY more than the value of my co-op, but I am reaffirming the mortgage itself). So, perhaps I am safe by the skin of my cavity-filled, Novocaine-injected teeth?

[BKParalegal]

No, you misinterpreted what I said. By not using the homestead exemption, means you don't own a home. Even though you are keeping your home, the homestead exemption applies to it.

Sorry

[happy_ira]

No, you misinterpreted what I said. By not using the homestead exemption, means you don't own a home. Even though you are keeping your home, the homestead exemption applies to it.

Sorry

Oh. Pooh. I thought this might be the case. Thanks for clarifying.

Let's hope the trustee doesnt ask for the bank stmt.

[happy_ira]

No, you misinterpreted what I said. By not using the homestead exemption, means you don't own a home. Even though you are keeping your home, the homestead exemption applies to it.

Sorry

Let me ask a follow-up. On my Schedule C (Property CLaimed as Exempt) the box that states "Check here if debtor claims a homestead exemption that exceeds $136,875" is not checked, but it sounds like I am still using the homestead exemption (just for a lesser amount). Cool. Got it.

However, on this schedule it does indeed list my bank account and some cash on hand, together summing to $100 (which is a true fact looking at my check register... whcih actually shows a negative, overdrawn balance!!!). So, that seems exempt. At what point is the line drawn? If I had written down that I had $200 in cash on hand, that woudl be claimed as exmpt.... then OK? WHat if $500? $700? $2000? At what point does the exemption run out? Isn;t that the $2500 per person?

Surely it can;t be $0 (can it?) for people claiming homestead exemption?

I cant wait till this process is over and I know one way or another. Again, I'd happily lose $2500 to wipe out $150000...