New job and cash in bank before filing

[Doghouse]

Okay, so I am starting a new job Monday after being unemployed since late Nov (yipee). The unemployment period has really helped to drop my avg salary and now should easily qualify for Ch 7.

My question is regarding cash in bank. I know most say to keep under $100 or so at time of filing. I get paid monthly at this new job and will be paid at end of February. After paying the last $1000 to my lawyer and a few other bills I will still have at least about $1500 to $2000 or so if I plan on filing in the first week in March as anticipated. I won't get paid again till end of March so I don't want to try to spend all that money at once just to get down to $100 on filing date. Can I just use the California wildcard exemption to protect it? I hope to contact my lawyer next week.

[relief13035]

Cash your paycheck and don't put it in the bank.

[jribe]

if your exemptions cover the cash in the account, don't worry about it! People say the $100 thing when they don't have enough exemptions and don't want their bank balances taken...

Okay, so I am starting a new job Monday after being unemployed since late Nov (yipee). The unemployment period has really helped to drop my avg salary and now should easily qualify for Ch 7.

My question is regarding cash in bank. I know most say to keep under $100 or so at time of filing. I get paid monthly at this new job and will be paid at end of February. After paying the last $1000 to my lawyer and a few other bills I will still have at least about $1500 to $2000 or so if I plan on filing in the first week in March as anticipated. I won't get paid again till end of March so I don't want to try to spend all that money at once just to get down to $100 on filing date. Can I just use the California wildcard exemption to protect it? I hope to contact my lawyer next week.

[freshstartfl]

My attorney worked my filing date around my direct deposit date. We filed 3 days before a biweekly direct deposit came in, and every other day or so I'd use the ATM for $50-$100, to make sure the $ in there on the date of filing was very minimal. I also made sure not to have any outstanding checks -- I used my Visa Debit to pay my bills, and wrote checks to no one.

[nervousss]

I literally only had 20 bucks in my account the day I filed (didn't have to make thousands dissapear lol, it happened on it's own) but I would be careful about taking out cash from the ATM, especially for that much money, even if it is over time.

If the exemption doesn't work out, I would make a major purchase for your house that you need. That way, it is justifiable, and also you're getting something out of it. Just an idea!!

[epiphany]

Wouldn't worry too much about it, but yes you can use the California expemption and if you have enough exemption to protect it, then definitely include it. I did.

Good luck,

ep

[Doghouse]

Thanks for the replies. Since the California wildcard exemptions is pretty generous, I may probably end up using that. I don't have a lot of other assets that need to be protected with the wildcard (other than my tax refund).

Cash your paycheck and don't put it in the bank.

This is also a thought. Since I anticipate about $3500 after taxes, I don't know where I'd easily be able to cash that check without a deposit hold. Certainly not at my new US Bank acct where they even held my unemployment check (all but $100) for a day or two because I am still a "new" customer of about 3 months.

Actually, now that I think of it, I can probably just deposit the paycheck into my Netspend Pre-paid Visa card. Then I can pay my lawyer and use the cash as needed via the ATM. It's only my first paycheck that I will opt to receive as a paper warrant. After that I will switch to direct deposit.

[Trixie007]

Cashing your paycheck or putting it on the pre-paid Visa really doesn't help you, because you have to tell them how much "cash" you have too...

[Doghouse]

Cashing your paycheck or putting it on the pre-paid Visa really doesn't help you, because you have to tell them how much "cash" you have too...

What do you mean, Trixie? Netspend pre-paid visa is not reported to credit bureaus or linked to any bank accounts. How is reporting this "cash" different from cashing my entire paycheck and stuffing it under my mattress? I assume if it's not in the bank, then they don't have to know about it.

E.g, say I withdraw $450 from my bank account and now have my bank balance showing $100. Then file a few days later without spending the $450 which is still on my desk at home. Are you impying I'd have to declare that I have cash of $550 and not $100?

[guitarman1908]

.Hold on a minute...I thought you had to show them your bank statements and w2 for two years....if so, your statement will show you have been taking out $50 bucks twice a week (example) won't the attorney or trustee ask what did you spend the $200 on that you took out. I also thought they look at receipts?

Also, "cash you paycheck" that goes on your w2 also and would it not be flagged as fraud the following year??

What am I missing?

[Trixie007]

What do you mean, Trixie? Netspend pre-paid visa is not reported to credit bureaus or linked to any bank accounts. How is reporting this "cash" different from cashing my entire paycheck and stuffing it under my mattress? I assume if it's not in the bank, then they don't have to know about it.

E.g, say I withdraw $450 from my bank account and now have my bank balance showing $100. Then file a few days later without spending the $450 which is still on my desk at home. Are you impying I'd have to declare that I have cash of $550 and not $100?

Well, yes, you do. I'm not saying you couldn't get away with that, but it would be considered fraud if you got caught. You have to declare, under penalty of perjury, how much $$ you have in the bank, and how much cash you have on hand. That includes gift cards, pre-paid cards, etc. If you just cash a check and hold on to it, the Trustee can see from your pay stub that you got paid, and see from your bank statement that it didn't get deposited. You may not be required to, but be prepared to show receipts if the Trustee has questions.

[StartingOver08]

You are filing a CH 7. The Trustee looks at the bank statements in most districts. In my district they really examine them.

The last statement that includes your filing date is of extreme importance to your Trustee. To be safe, exempt the amount of money you have in the account in your petition and do the same with your tax return funds. You have a generous exemption in California - so you have an advantage there. You do not want to state under oath that you have $x and actually have $y. The petition is very specific about asking the amount of cash in each account and the cash on hand.

[jeb]

Cash your paycheck and don't put it in the bank.

And when you get to that little space on the filing forms that ask how much cash you have - anywhere - you are going to say what?

And we wonder why we have problems in this country - jb

[Doghouse]

You are filing a CH 7. The Trustee looks at the bank statements in most districts. In my district they really examine them.

The last statement that includes your filing date is of extreme importance to your Trustee. To be safe, exempt the amount of money you have in the account in your petition and do the same with your tax return funds. You have a generous exemption in California - so you have an advantage there. You do not want to state under oath that you have $x and actually have $y. The petition is very specific about asking the amount of cash in each account and the cash on hand.

But I thought it's the statements for the last months prior to the filing that matters. I am filing first week in March so it's the Feb '09 and before statements that will be required and that will not show my pay deposit anyway as I will get paid on March 2. Are you saying I will also need to provide my March '09 bank statement which won't be available till April? Is that how they verify cash in bank at time of filing? I was just going to get a printout on the day I filed.

[StartingOver08]

Maybe the printout will work. I filed 9/30/08 and my 341 was 11/4 so I had the Sept 08 bank statement that the Trustee requested for my 341.

All prior bank statements (for me it was 2 yrs) I had already provided. The only one I had to bring to the 341 was the Sept statement showing the balance on the date of filing.