Checking Account Question

[MSH]

My lawyer asked about my checking account balance.... I never have anything extra in there. So, I told him...pretty much zero.
I am currently preparing for my 341.... problem is, I never have a zero balance. I live paycheck by paycheck....but i have two kids. So, i wait to pay my bills until the next paycheck comes, or i time it so it is pretty close.... just incase an emergency comes up.

Will this be a problem with the trustee.... Because i really don't have the cash, but it looks like it on my statements.

[jessegirl]

Why would you tell you attorney "pretty much zero" when you don't.

Are you saying that the statement shows a balance becasue there were checks that didn't come in once the statement was printed? If so thats alright. Just explain if he/she asks.

DId you call your attorney and tell him that you pretty much don't have zero in your account? What is on the petition as far as a balance?

[AngelinaCatHub]

Your accounts recievable are your statements. Your account payables are your reciepts. If the payable equals the recievables, it is likely that it would satisfy the Trustee. I would have as little as you can in the account at all times. Like a hundred they wouldn't go after or care. like a thousand you have a problem. 'Hub

[lrprn]

My lawyer asked about my checking account balance.... I never have anything extra in there. So, I told him...pretty much zero.... Will this be a problem with the trustee.... Because i really don't have the cash, but it looks like it on my statements.

First - TELL YOUR LAWYER THE TRUTH immediately about the cash flow in and out of your account. He/she can help you plan the filing to deal with the fluctuations, but they can't help you with what they don't know about or were led to believe something that isn't really true.

Now....assuming that you can't protect what's in your checking account with your state's exemptions when it's at its highest (ask your lawyer about that), then what you need to do is time your filing so on filing day you are at the lowest amount in your checking account.

You need to go back and track the flow of cash in and out of the account so you can see when during the month (or in your paycheck cycle) the balance is at its lowest. That's the time frame when you ask your lawyer to file your case so when the printout of the account on filing day is provided to your trustee, it shows the "almost zero" balance you mentioned.

Another option is to stop automatic paycheck deposits and get your last paycheck or two before filing on paper, then cash them out and use money orders to pay all your bills before filing day. Again this will produce the lowest amount in your checking account on filing day - that's the goal.