Question about exempted funds in Bank account after filing

[sophia]

Does this sound right?

We will have funds in our bank account from our income tax refund that we will be filing using an exemption for with the Florida wild card. (have spent a large sum but can not spend it all)

I wanted to file before the first so that I would have my husbands checks from the month of April to use to pay bills due on May 1st.

The paralegal told me that I should not worry about filing on any particular day because the money in our bank account will be exempt and I can spend it on bills the next day if I need to.

I was under the impression I had to leave that money alone until after the 341 meeting and discharge and she said I was mistaken.

Does this sound correct?

[StartingOver08]

How much money are you talking about? Fl's exemptions are extremely small and you would have to exempt the amount that is specifically in the account as of the filing date. Anything over the exempted amount goes to the trustee.

As to leavng the money alone - the paralegal is correct. You are free to spend money in your account that is received post petition. You do not have to wait a month to spend any funds. Remember the petition is your snap shot. If you have $1000 in your account that is exempted on the date of filing you can spend that money on bills after you file. If you have $1000 exempted and you have $2000 in the account - then $1000 goes to the trustee (if the trustee asks for it). That is why the Trustee wants to see your bank balance as of the filing date - to compare what you actually have with what you filed.

[sophia]

How much money are you talking about? Fl's exemptions are extremely small and you would have to exempt the amount that is specifically in the account as of the filing date. Anything over the exempted amount goes to the trustee.

Well, she said we have 12K to play with, so far here is what we have:

2 cars totalling- 3300
persoanl items - 2300
stock - 1100
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So, we are at $6700 right now and I think we will have close to 3K in the bank on the day we file, this is the left over amounts of the tax refund plus whatever is left from husbands paycheck.



TIA

[StartingOver08]

Yes, she is correct. You can file and spend the exempted funds. Make sure your petition specifies how much you will have in the bank ($3k) on the filing date. That way there is no issue with your account. Remember to put your 'cash on hand' in the exemptions too

[sophia]

Yes, she is correct. You can file and spend the exempted funds. Make sure your petition specifies how much you will have in the bank ($3k) on the filing date. That way there is no issue with your account. Remember to put your 'cash on hand' in the exemptions too

Thanx!

I was so worried that I would not have enough money for bills, apparently for no reason at all.