Bank account balance question

[Tom_Mi]

I'm surrendering my house..and my attorney tells me not to sweat that I'll have about 9,000 in my accounts...that it's covered by my wildcard exemption.

true?

[happy_ira]

Hi Confused14. I'm in the same boat as you. I was (and still am) worried that I had a few thousand in my bank account on day of filing because the mortgage electronic debit had not yet kicked in, so it was out of my control. Too bad though. I am taking a hoomestead exemption, so forget the $2500 exempt. Nevertheless, if the Trustee says "Hey, you had an extra $3000 in there - hand it over..." I would obviously do so since getting discharged means wiping out $150k in credit cards and gives me the fresh start I desperately need. I would not be thrilled about it, but the math is easy: $3k vs $150k.

That said, my attorney did NOT tell me to have it close to $0 on day of filing (so I'm a little peeved), however, he did say that the Trustees DO have a heart and are reasonable. If the mortgage payment was sucked out on the very next day, we'll just show it.

Honestly, apart from the SS, photo ID, tax returns and 60 day paystubs, I would *not* bring anything else to the 341 unless you are specifically asked in advance. I think many people get nervous on the spur of moment and may flub the correct answer or paint themselves into a corner. I'd rather be asked to collect a few more documents and send it in, rather than explain it on the spot without knowing what I am being asked for in advance with a chance to review with my attorney. Nevertheless, it's not a bad idea to know where these things are so you can provide to the Trustee within a few days of his/her asking.

BTW, I'm also in NY. Feel free to PM me...

[danaf]

Confused - I filed using NY exemptions. And yes - $2500 or less cash or money in the bank when you file....that is what they allow. Less good but if you had more then there is a possibility you might have to pay the trustee the difference. Hopefully it will fall under the radar with the amount of bks going on or your lawyer can argue it for you. BUT - if all fails, you will have to pay the trustee that money but they can spread it out in payments - if even this becomes an issue.

You are not golden as another poster said. This was a mistake. Checks written but not cleared does not count. You should have taken out the money and gotten money orders. The exemptions are clear on the $2500 on the day of filing. Not trying to be harsh but it is what it is.

Just put it into perspective. You are most likely discharging a large amount so having to pay 3k (if this happens to you) won't be the end of the world. What would be way worse is if you didn't get a discharge at all, or if you got objections to your bk. So take a deep breath - it will be ok.

[Confused14]

I wish my atty would have informed me about the '$2500 or less cash or money in the bank when you file' before I filed!! I'm actually kind of P.O'd right now. If the Trustee asks if I still have $4000 in my account, I will tell him NO, I had numerous expenses since the date I filed to now. I have receipts for 90% of that money. If they say I have to pay the difference of $1500, then fine I'll do it if it means I can get a discharge. I will then be speaking to my atty not so nicely as to WHY he did NOT notify me about this beforehand! Thank you all for your answers.

[reallynervous]

Can you look at your copy of your bankruptcy filing and see how your accounts were covered with exemptions?

The balances as of the date you filed should be listed and there hopefully is a corresponding exemption number (sorry that probably isn't the correct terminology) that would indicate the reason it should be exempt (based upon the allowable exemptions in your area).

reallynervous

[Confused14]

On my Schedule B - Personal Property it lists my bank accounts, clothes, goods, 401K, etc. Then on Schedule C - Property Claimed as Exempt it has the same stuff listed with a different column titled "Specify Law Providing Each Exemption", where it has Debtor & Creditor Law, 283 for my accounts and something called CPLR for some of the others. I looked up Law 283 and I couldn't understand what it said!!! It really didn't make sense to me.

Does the fact that I have these laws attached to these items a good thing? Does this mean that my atty is stating the money I had in my account at the time of filing is exempt? If so, can the Trustee argue this? Please clarify, thanks.