very confused...bank account

[mimijess]

I am reading some posts about bank accounts...so...if you have 3k on your checking account at the time of the filing, the trustee freezes your account and take the money to pay some debt, and what happens if you make extra money or deposit money into your account after the filing..do they still get the money? what happens with salary that is direct deposited into the account? how do we pay living expenses if they freeze your money>\?

thanks...

[AngelinaCatHub]

I am reading some posts about bank accounts...so...if you have 3k on your checking account at the time of the filing, the trustee freezes your account and take the money to pay some debt, and what happens if you make extra money or deposit money into your account after the filing..do they still get the money? what happens with salary that is direct deposited into the account? how do we pay living expenses if they freeze your money>\?

thanks...

I am not sure about the freeze but if you cannot justify an excess amount in your account, it would be considered an asset. Even due to the fact we were late on electric payments, we had to come up with a deposit. Never had one before. It was also an asset in which we had to purchase from our estate as an asset case. Are you represented? If you are, these are questions for your lawyer. If pro se, the C7 book from Nolo.com is a bargain.

Read all the "stickies" on the C7 or C13 sites and use our search engine for past questions is the best I can advise. If you have not filed, use your monies wisely as far as toys and unnecessary stuff. Google bk law and many lawyer advisories are up and some are very very good. You will be fine.

The very most important thing is, be honest, do not make payments to family or particular creditors over others. That will cost you. The process is not hard if you just stay within the rules. Check stickies. 'Hub

[LuciluS]

I am reading some posts about bank accounts...so...if you have 3k on your checking account at the time of the filing, the trustee freezes your account and take the money to pay some debt, and what happens if you make extra money or deposit money into your account after the filing..do they still get the money? what happens with salary that is direct deposited into the account? how do we pay living expenses if they freeze your money>\?

thanks...

Not always True! It depends on your State's Exemption and usage of your State's Exemption. I think there's been 2,maybe 3 Threads where Bank Account was frozen by the Bank, Wells Fargo.

You also can spend down the 3k before filing. Will need receipts to prove such. I think the snapshot of Bank Statement must be the Actual Date of Filing. I believe it's okay to have around $165 in bank accounts IF you are confident: any specific item used to determine your Disposable Income will not be challenged by the Trustee. In other words, your expenses need to be near the US Standards of Living or have documentation why an expense is higher.

Some posters plan the date of their Filing around their paycheck and/or expense. We don't have this choice as our BK Attorney files all cases at the last business day of the month.

Do you have an Attorney? It's best to seek his/her advice & be honest. In Re - To other question asked on another Thread: Don't change your checking acct. or open a new one & not disclose such. Trustees have several ways of 'hunting' and could possible face a discharge of your Chapter 7 Bankruptcy.

Luci