bk7 and checking accounts direct deposit

[sadandconfus]

I am planning on bk7. My paycheck comes every week and I plan on withdrawing cash every week. Will that raise a red flag. I am well below the median in my state. I just figure since I won't have to pay the mortgage and credit cards I will have like 1000 a month in the account. Do you think I should get a paper check instead.

Also since I am well below the income median for my state do I still have to fill out the expense section?

[AngelinaCatHub]

OK, don't attempt to hide any income. Yours being so little, you will have no problem in justifying it in your bk. If you draw a paper check, these days you need an account to cash a check. Not like 20 years ago. 'Hub

P.S. I can't answer the second question.

[sadandconfus]

also since I won't have anymore credit cards I will have to withdraw cash to buy groceries, diapers, formula, gas, etc.

[Iamtoobroke]

I am at about the same income per month as you and I had to file expenses. I believe everyone who file has to do that.

At our income level, withdrawing cash should not be a problem. You have to live and eat. Don't worry!

You do not need to go to paper checks, unless you already have a judgment and have not yet filed and want to keep money out of your checking account. Otherwise, no worries at all. It's always best to be completely honest in your filing. Everyone has living expenses and your income is not high, so try not to sweat it too much.

[sadandconfus]

Thanks, I thought I read somewhere if you have too much in your account after you file and before your discharged they might try to take that amount. If I file April and it doesnt get discharged for say 3 months I will have about $3000+ in my checking account and 1000 each additional month it doesnt get discharged.

[Iamtoobroke]

That depends on your state and the exemptions for your state. They will look at the amount you have in your checking account (or any other accounts) as of the day you file. If it is more than the state allowed exemption, you can use the wildcard exemption for your state if you aren't using it for other property). Anything that is in your account on that day, above the allowable amount is non-exempt. Your attorney should be able to advise you on this. If it is a little above the allowable amount you can spend some before filing on reasonable and necessary living expenses.

[sadandconfus]

When I file I won't have much anyways, come to this of it I still have to pay for the attorney. I hope they have a payment plan and Federal taxes are due in by the 15th.

[StartingOver08]

When I file I won't have much anyways, come to this of it I still have to pay for the attorney. I hope they have a payment plan and Federal taxes are due in by the 15th.

Most attorney's require payment in full before they will file a Ch 7 for you (have not heard of any that will allow payments at all).

Most attorney's will allow you to make payments to them in the time leading up to your BK filing in order to pay in full.

Many attorney's will allow you to refer the debt collection calls to them after you have retained the attorney, which is helpful in when you are still paying the attorney his fee.

You need to file your tax return, even if you do not have the funds to pay what you owe. The part you owe uncle sam is put on the petition as priority debt, but it is NOT dischargeable.

If you are getting money back, file your taxes first - get the refund and use the refund to pay your attorney filing fees and basic living expenses. You want to have only the amount of $$ in your account that you have exempted on the petition as of the DATE of filing.

[sadandconfus]

I filed my state tax and got that back and already used the money for bills and other expenses. I've completed my federal tax but have not mailed it in because I won't have the money to pay for it until like April 12, 2009. I will then mail it in before the April 15 deadline. I guess I will have to borrow money from relatives to pay for attorney if he asks for it all at once. I have an initial meeting with attorney tomorrow afternoon. I also have one on thursday with another attorney. I started making a list of what to ask him (took notes from the members posts).

[sadandconfus]

Meeting with attorney today went well. I got a lot of forms to fill out and he would accompany me to the 341 meeting. Price was over $2000 for everything. According to him I qualify for the 7, I fell below the median. I feel at ease and as far as the checking account is concerned he says I don't have to worry because the exemption is high enough but I can also withdrawal cash as well. One problem though, he said that since I have someone else on the deed they can go after that person with a deficiency, but hopefully that person can file bankruptcy as well. Even though the statutes of limitation are 3 years.