Automatic Deposits

[BKINAZ]

I have been told by a couple lawyers and have seen it on here...we should have no more than $150 in our bankaccount prior to filing. I have seen on here also that you should stop all automatic deposits...I assume that is correct?

We now get my wife's paychecks live (in hand)...do we still deposit them, or cash them? We are 3 months+ from filing. I assume we deposit them and that the whole stop "automatic deposits" is just to give us more control?

[kenshirley]

By your "name" on this forum I think you are in AZ.
You may have misunderstood something but you cannot have more than $300 total in cash on hand and in any accounts when you file that can be exempt.

[UhOh]

I have had thoughts about these two topics too.

My employer only gives direct deposit and no checks are written; no exceptions. So I do not have a choice. I'm not sure it makes a difference anyway since it is obviously pay for work and it is routine and a consistent amount. No shocking surprises there. But the second part is where I have questions and maybe it is related or maybe not.

On any given day I have money both in my wallet and in my bank. However, if I buy groceries on a Tuesday, then I will have less money in the bank. If I pay rent and the landlord waits a week to cash the check, I appear to have a lot of money in the bank, but I don't. Anyway, I find it hard to believe that we would be forced to spend ALL but $100 of our money and make sure all checks are cleared on the day we file.

It is similar to "how much do you owe Bank of America". That amount grows every day. What I owe today is less than tomorrow. It's like that on all my accounts.

To me it seems like we are talking about timing right? So the idea might be to file the day before payday and literally spend everything and hope you have no trouble needing a taxi or something that night. Right? hypothetically speaking you know.

[StartingOver08]

Yes, it is a matter of timing your filing.

One of the ways you can ensure that the rent payment clears before filing is to pay by money order or bank check.

The Trustee is entitled to all funds in your account over the amount you stated as a balance. As you noticed, normally you just time the filing to your lowest point, which is just before your direct deposit. In order to make sure all the checks are cleared before filing, you probably should not issue any checks for a couple of weeks prior to the filing date - just use your debt card or a money order (in the case of rent). That way there will be no outstanding checks when you file.

[BKINAZ]

That's kinda my point UHOH...I dunno...it is timing?

BTW Ken..yes...$150 each. (I think) At any rate, the question is still there...does it matter if we have $4,000 in the account two wks before we file as long as it is paid out to our $3,700 in bills before the day we file???

[UhOh]

I see. Thanks. I suppose the lawyers will be able to time it right.

By the way I'm nervous about actually calling and making appointments to start finding a lawyer. I've studied these forums for long enough to know I have to get things in order and I am pretty much ready to go any day now. Just that first call....

[BornAgain]

By your "name" on this forum I think you are in AZ.

BKINAZ

Hmm... I was thinking the poster is just a big fan of women's two-piece swimwear...

;-)

Maybe I've been reading too many vanity license plates. [shrug]