pulling money out of checking account right before filing

[cyn5]

Did you just get the money order right from the bank? My banks charges 2.00 for a cashiers check and I have alot of bills that I need to pay with a money order so I am trying to figure out the cheapest way.

You can get money orders at grocery stores for like $0.30 or something like that. Banks charge too much for money orders:-)

[okiemom2008]

You can get money orders at grocery stores for like $0.30 or something like that. Banks charge too much for money orders:-)

So it's ok to take the money out of atm as long as you turn it into a money order, correct?

[okiebk09]

Hey okiemom. I am not sure about Texas exemptions. We filed on the day I got paid. Don't know yet if that was a mistake. However, the amount of cash on hand in our petition is way less than was actually in my account that day and we got a letter from the trustee requesting documents to bring ot the 341 meeting and she wants bank statement as of the day petition was filed and 60 days prior. So I have no idea how that will play out since my attorney did not nother to ask me what my account balance was that day and change it. Oh well if the Trustee says something I will defend it to the end. There is no way that IMO they can say that is money that we can't spend or whatever if I got paid that day I can't help it. That money was for bills etc so i will show them where I paid bills to this day still loving paycheck to paycheck and still not enough money to even buy clothes. Some of these stupid rules are just that!!!! I cannot believe they expect people to go and empty out a bank account that might have more than $100 in it just because they are filing. All they have to do is say "what was the money used for ". I don't get it. Some of this is just crazy. So my 341 meeting is next tues and will be posting what happens. I am sure there are more mistakes somewhere in the whole mess of things. Good luck but I would definatley get my money back on the comp and I would empty out my bank account someway to just to be on the safe side. I have heard so many different things just here in OK. It seems as though the whole process is a wild card and will depend onthe personality of the trustee!!!!!!!!!!!!

[okiemom2008]

Hey okiemom. I am not sure about Texas exemptions. We filed on the day I got paid. Don't know yet if that was a mistake. However, the amount of cash on hand in our petition is way less than was actually in my account that day and we got a letter from the trustee requesting documents to bring ot the 341 meeting and she wants bank statement as of the day petition was filed and 60 days prior. So I have no idea how that will play out since my attorney did not nother to ask me what my account balance was that day and change it. Oh well if the Trustee says something I will defend it to the end. There is no way that IMO they can say that is money that we can't spend or whatever if I got paid that day I can't help it. That money was for bills etc so i will show them where I paid bills to this day still loving paycheck to paycheck and still not enough money to even buy clothes. Some of these stupid rules are just that!!!! I cannot believe they expect people to go and empty out a bank account that might have more than $100 in it just because they are filing. All they have to do is say "what was the money used for ". I don't get it. Some of this is just crazy. So my 341 meeting is next tues and will be posting what happens. I am sure there are more mistakes somewhere in the whole mess of things. Good luck but I would definatley get my money back on the comp and I would empty out my bank account someway to just to be on the safe side. I have heard so many different things just here in OK. It seems as though the whole process is a wild card and will depend onthe personality of the trustee!!!!!!!!!!!!

I agree. I understand why they have the rules but come on--it is like they want us to start out as broke as possible so we end up filing again in 8 years. I hope my trustee is easy going as I have had so much stress just thinking about filing and I hope after we file it goes away.

Good Luck to you !

[frustrated7]

Here's a crazy question that kind of goes along with this thread. What happens if your tax refund goes directly into your checking account? Do you have to exempt that same money twice? What I mean is do I have to exempt the money from the tax return to keep it and then also exempt it yet again to have it in cash form or in the checking account? It would make no sense to force us to use twice the amount for exemption, but that is kind of the way it sounds.

[Tbornetun]

No, you will only exempt it once. The day you file, wherever the refund is located whether it still be in the IRS's hands or in your bank account. That is where you will list the asset and where you will exempt it. You do not need to exempt it twice.

[okiemom2008]

My lawyer has not even mentioned exemptions. So, could I exempt my tax refund instead of waiting for it to be deposited since it is taking so long? If I can, when you exempt it is it really exempt no matter what?

[outsidetool]

I'm not in Texas, but when I filed my atty asked how much was in my account. He told me to withdraw all but around $25. He said, "go buy groceries." And, if the trustee were to ask, "I didn't know how this all would go, so I went and bought a bunch of groceries." Now, I know this seemed a little on the fly...but I was never asked a thing about it.

[StartingOver08]

Hey okiemom. I am not sure about Texas exemptions. We filed on the day I got paid. Don't know yet if that was a mistake. However, the amount of cash on hand in our petition is way less than was actually in my account that day and we got a letter from the trustee requesting documents to bring ot the 341 meeting and she wants bank statement as of the day petition was filed and 60 days prior. So I have no idea how that will play out since my attorney did not nother to ask me what my account balance was that day and change it. Oh well if the Trustee says something I will defend it to the end. There is no way that IMO they can say that is money that we can't spend or whatever if I got paid that day I can't help it. That money was for bills etc so i will show them where I paid bills to this day still loving paycheck to paycheck and still not enough money to even buy clothes. Some of these stupid rules are just that!!!! I cannot believe they expect people to go and empty out a bank account that might have more than $100 in it just because they are filing. All they have to do is say "what was the money used for ". I don't get it. Some of this is just crazy. So my 341 meeting is next tues and will be posting what happens. I am sure there are more mistakes somewhere in the whole mess of things. Good luck but I would definatley get my money back on the comp and I would empty out my bank account someway to just to be on the safe side. I have heard so many different things just here in OK. It seems as though the whole process is a wild card and will depend onthe personality of the trustee!!!!!!!!!!!!

The whole idea of discharging the debt in a CH 7 is you are exchanging your non exempt assets for a discharge of your debt. To find out what is exempt and non exempt you give an accurate idea of your true assets (and liablilties) on the day of filing and the bank account is one of those assets.

My attorney said ANY FUNDS above the amount listed in the petition belong to the Trustee and have to be turned over to the Trustee. THAT is why they ask you to bring the bank statements for the filing date to the 341 - to check the amount on the day of filing. It is there in black and white for the Trustee to see.

[jeb]

This whole BK thing is a mess to start with - each state having it's own rules for a FEDERAL procedure just doesn't make sense.

And it is suppose to give one a "fresh start" - in some states that almost amounts to like being born again, with nothing. In others, you get to keep virtually everything you have.

And if you have truly tried to solve your problem BEFORE filing BK, you are penalized for doing so.

My income is 45% less than the median BUT because I cut my bills to almost nothing I may get pushed into a 13. (In the last 7 months I have had an average ele bill of less than $50.00 - 2 were $31 and $33) If I had been running "normal" expenses I would be a 7 with flying colors.

One can have a big home and all that goes with it and get a 7 without problem but if one had an income of $500.00/mo but were living in a car for a year, they get screwed. - jb

[debtmonster]

I do on-line bill pays with Bank of America and they take that money out sometimes the next day or the day after. The cheapest way is FREE. I NEVER pay for money orders. #1 it's expensive and #2 it's a hassle to drive all over the place to get that done, plus I don't like spending $.42 cents a stamp to get that there.

I just made $3100 this month. I just paid my attorney $1400, some utilities a few hundred, the car I plan to keep, $309 and a court fee for a ticket my wife got... and I don't get paid until Feb. 16th. We have less than $300 to buy groceries and gas.

I have ZERO problems spending every penny I make. I have so much debt and business expenses, I can spend 200% of the money I make and still have nothing left over. Debt and business expenses eat it all in a heart beat.

[JoeBankrupt33]

I just got my money orders from my bank. I felt bad having them do a handful of them, but they were free.