How could the trustee KNOW??

[uneasy]

How do you protect your cash? I use most of the money for my kids stuff and attorney fees. This was my tax refund I withdrew from my bank $4900.00 and I am schduled to file this week. Holy Cow!

I have the same question. I read on this forum over and over that you should empty your bank account prior to filing. If you do--you're hiding an asset and if you don't--they could take it. Yet, you have places that money needs to go. What are you supposed to do?

[StartingOver08]

Find out what you are allowed to have in cash exemptions. In our district it was extremely small because our exemptions are extra small.

The amount allowed in my case was $100 (you read that right - one hundred dollars). So I used all the rest of the cash to pay the attorney and to pay the IRS which is a priority creditor. You want to make sure the amount on the petition matches exactly what is in your account for the date of filing - you and your attorney need to know that figure in advance. Anything over the amount in your petition on the filing date goes to the trustee. AND, the trustee does not take into account checks that have not cleared yet! So make sure the funds are 'cleared funds'. I ended up paying the IRS and my attorney about 24 hours before filing with bank checks so I did not worry about the clearing issue.

[DebtStinks]

Depends on your state. In CA, no equity in house, I get a $21,825 wild card exemption. Going to use 10k on a car that we own then rest to protect a few other assets and cash in a savings account.

[uneasy]

Depends on your state. In CA, no equity in house, I get a $21,825 wild card exemption. Going to use 10k on a car that we own then rest to protect a few other assets and cash in a savings account.

Do you know where I can go to find out what cash exemptions are allowed in my state? Thanks

[JoeKing]

I am in CA, surrendering the house no equity and I am using my wild card exemptions. Does it mean anything over the wild card exemptions would be considered asset and I need to declare it?

I have a Van about $11K value and another car $10K value, plus cash $4900.00. I am over the wild card exemptions. Do I need to declare that as asset?

[DebtStinks]

Do you know where I can go to find out what cash exemptions are allowed in my state? Thanks

I've only looked at CA... but a simple google should find your state info.

[StartingOver08]

Go to www.legalconsumer.com and look up your states exemptions.

[DebtStinks]

I am in CA, surrendering the house no equity and I am using my wild card exemptions. Does it mean anything over the wild card exemptions would be considered asset and I need to declare it?

I have a Van about $11K value and another car $10K value, plus cash $4900.00. I am over the wild card exemptions. Do I need to declare that as asset?

Well just looking at what you have posted here... you have 21k equity in cars. The CA system 2 also gives you a $3,300 exemption for a car. So you have $17,700 excess equity that you would have to use your wild card to protect. $21,825-$17,700 leaves $4,125 in wild card to protect the cash. That only leaves $775 unprotected. Go out and stock up on groceries, get the car fixed, or anything that helps you out and is considered exempt.

[JoeKing]

Perfect! I just got my van service and it cost me $500.00 brakes, tune-up, and filter service. Do I just pay cash for this bill or do I need to deposit the money again to my bank account and write a check for my van service bill?

[uneasy]

Go to www.legalconsumer.com and look up your states exemptions.

thanks. Great site. However, for my state, there are no exemptions listed for cash on hand, or in the bank, or cash period. And no wild card exemption. I should have $0 in the bank when I file? I have bills to pay!

[DebtStinks]

Perfect! I just got my van service and it cost me $500.00 brakes, tune-up, and filter service. Do I just pay cash for this bill or do I need to deposit the money again to my bank account and write a check for my van service bill?

I'd just pay cash and keep the receipt. You'll show the $4,900 withdrawal and then just keep any receipts that drive down that cash balance so you can show why only have $x,xxx on hand at the time you file.

[StartingOver08]

I don't know what state you are in - my state is Fl and we are allowed $1000 for the vehicle exemption and $4000 to use on EVERYTHING else including cash in the bank and cash on hand. This $4000 is only avail if you are not claiming your home -

So your state may be similar in that it does not say how much is for cash, but it states the amount you are allowed to have in total. Some states are much more detailed. That is why you have to plan the figure with your attorney so you are both on the same page as of the filing date.

[2Bshinyandnew]

Find out what you are allowed to have in cash exemptions. In our district it was extremely small because our exemptions are extra small.

The amount allowed in my case was $100 (you read that right - one hundred dollars). So I used all the rest of the cash to pay the attorney and to pay the IRS which is a priority creditor. You want to make sure the amount on the petition matches exactly what is in your account for the date of filing - you and your attorney need to know that figure in advance. Anything over the amount in your petition on the filing date goes to the trustee. AND, the trustee does not take into account checks that have not cleared yet! So make sure the funds are 'cleared funds'. I ended up paying the IRS and my attorney about 24 hours before filing with bank checks so I did not worry about the clearing issue.

It is probably a great idea to assume that this is how it will play out, BUT, when my ex filed, he had less than $100 in his account on the day he was told his petition would be filed. The attorney was supposed to file on a Thursday, but the petition wasn't filed until Friday, so exhub's paycheck was direct deposited at midnight the day he filed, giving him substantially more in the bank on the actual date of filing.

He sent the statement showing all the transactions, including the direct deposit and balance on the day of filing, as required, to the trustee before his 341. We are in Florida as well, so his small amount of exemptions were all used up.

No one said a word, not at his 341 or at any time. His was discharged 3/2/09 and terminated 3/10/09.

My point is, if you have more than $100 in your account the day you file, unless you are asked for it, I wouldn't voluntarily hand it over It may not be an issue, but plan for it to be.