Filed Today...

[debtfreeplease]

So my lawyer finally got around to filing me today, even though he was supposed to do it on Wednesday!!! As of this morning my checking account was showing an available balance of $442, and a bank balance of -$82. The available balance is so much higher because my paycheck went in overnight but has not posted yet. Does this mean that after the 341, since I have 442 in my account and I filed today, that the trustee will take that amount? I am just confused over this. Or since my bank balance is -82, will he not take anything? I don't know which amount they go by, 'available balance' or 'bank balance.' And does he take it after the 341 or if he is going to take it would he do it today? Also, do I have to be really careful about where I use my debit card now? Thanks so much.

[ansky0007]

You need to look at your exemptions for your state... You are allowed to have some cash. What you have I am sure is below the allowance.

[WoodSprite]

So my lawyer finally got around to filing me today, even though he was supposed to do it on Wednesday!!! As of this morning my checking account was showing an available balance of $442, and a bank balance of -$82. The available balance is so much higher because my paycheck went in overnight but has not posted yet. Does this mean that after the 341, since I have 442 in my account and I filed today, that the trustee will take that amount? I am just confused over this. Or since my bank balance is -82, will he not take anything? I don't know which amount they go by, 'available balance' or 'bank balance.' And does he take it after the 341 or if he is going to take it would he do it today? Also, do I have to be really careful about where I use my debit card now? Thanks so much.

Hi again, DFP. Darn it...I can't believe your lawyer waited until today after you specifically told him today was pay day! And you're using up your entire $2500 exemption for next year's tax return, correct? Grrr...

I'd call the lawyer's office and ask THEM exactly how much money they've just cost you, since it was their doing. (And also since I don't frankly know.) But nobody's going to take this money, today, so you don't have to skip the trip to the grocery store or anything. Certainly nothing at all will happen until your 341, and it's always possible that the trustee will just not feel it's worth the trouble to go after. Here's hoping...

I was ridiculously careful about what I used my debit card for between filing and discharge. It was probably overkill, since they're looking BACK six months from the date of filing. But you just never know what's coming, so every time you're about to pull out that card, imagine having to explain the expense to a trustee. Better to err on the side of caution and sleep through the night!

[debtfreeplease]

Thanks Woodsprite. I really am not happy with this lawyer so far. When I was there he said he would file me before Friday. I emailed him later that day to confirm and he said he would file me Wednesday. I saw nothing on Pacer so I called Thursday morning and the receptionist said that it would most likely be filed thursday but if not then friday. I said it HAS to be done before friday!!! And lo and behold, it didnt get done until this morning. GRRRRR!

Does anyone know if the trustee goes by my bank balance or available balance for how much money I had on the day I filed? My exemption has already been used for my tax return.

[debtfreeplease]

Also, if I spend the 400 bucks today on gas and food and stuff like that, can the trustee still take it if that money is gone by the end of the day? Or does it go by the amount of money that is in your account at the exact time of day that you file?

[debtfreeplease]

Anyone?

[JRScott]

I think you'll be okay if the bank balance is -82 dollars. Technically the paycheck you said hadn't cleared yet so isn't there.

Try not to panic yet. I'd still go fill up the car and buy groceries that you need. As someone else said even if the trustee was to take some of the money its not going to be before the 341. The trustee never touched my account but I can't remember now how much I had in it, I think a few hundred dollars.

[DaisyMae]

That money is from wages earned prior to filing,

so your bank balance is a secondary issue- the court will take a certain % of your earned wages as of the date you file. And of course if you deposited money right before filing, well- if that exceeds exemption you will lose it also. They will review your bank statement, and see a recent deposit that had yet to be credited, is my guess.

[epiphany]

Hello. First of all, please try to calm down. I know that's easier said than done because I've been there. Because I've been there, I also know I did a lot of worrying for nothing.

No one is going to take anything from you before the 341. And even if the trustee does want your measly 442.00, I do not believe (someone correct me if I'm wrong) that they would just arbitrarily seize it the way a creditor with a judgment would unless you were uncooperative.

That being said, if you do not have a lot of assets and you are a pretty simple 7 case, you most likely have nothing to worry about. A lot of us, myself included, were not even asked for bank statements and I had the same exact situation as you. Lawyer said he'd file on X date, didn't do it for nearly a month later and by that time I had a lot more money in my account because my rent check hadn't cleared. Turned out to be a non-issue.

But even if the trustee does want it from you, wouldn't that be that a very small price to pay for the relief that you will ultimately be getting?

Try and put everything in perspective. You are filed now and congratulations on that. It will get easier to deal with from here on out.

Good luck to you.

ep

[epiphany]

so your bank balance is a secondary issue- the court will take a certain % of your earned wages as of the date you file. And of course if you deposited money right before filing, well- if that exceeds exemption you will lose it also. They will review your bank statement, and see a recent deposit that had yet to be credited, is my guess.

Everyone's situation is different and the courts do not just willy-nilly take a percentage of your earned wages. I am assuming that the OP is in a chapter 7 because of the forum this was posted in. If the OP's BK is successful, all qualifying debt will be discharged.

In a 13, the payback amount is based on disposable income, not percentage of earned income.

I don't mean to sound harsh but it can be detrimental to new posters to post incorrect information, especially in the form of a blanket statement. Opinions are helpful but guessing at factual information isn't.

Thanks,
ep

[BROKENN]

I would say it is actual balance. And to take a snapshot of that online for that day.

I had the same problem, in reverse! I signed on a Tuesday and he didn't file until Friday. My balance was lower and I lost some exemption tickets (money not used)!

I snapshot my bank and brought it to my 341. Trustee didn't even ask for it. They did want to know how much we made since filing on our 341 though.

All came out smooth, because really, all the numbers were close as we were trying to be honest.