How can they take money I dont have?

[FLGirl]

As per my other post.... I am wondering how the trustee can take money that you may have had in a checking account on the day of filing but have since spent on bills, living expenses, or other necessities????

[Zapata]

I believe that you must provide receipts and other proof of where the money went. Just basically show the trustee where the money went: expenses. At least that's what I am going to do. What do they expect? That we don't pay our rent while waiting for a 341?

[HHM]

The legal reason is...

All your assets at the time of filing your petition become property of the bankruptcy estate. So, if you have a $1000 in your bank account on the day you file, that $1000 now belongs to the bankruptcy estate, regardless of your future expenses.

[craigerzz]

So in other words don't file on payday!

Craigerzz

[FLGirl]

ty

Thanks for the responses.

My question is still though, if I don't have the entire $3366 at the time of the 341, how can they take it from me? And at that time it will be 11/18, and I will have upcoming rent and living expenses to pay.

Can they wipe out my account and leave me to be evicted?

[StaciMM]

I don't really know the answer to your question, but I imagine it can hold up the discharge or possibly lead to a judgement.

[ducksinarow]

That's something I don't understand either.

Luckily my 341 will be on the 10th of Nov and we get paid on the 1st and 15th so all of that money will be gone (like it always is by bills) and we won't have to worry over it.

I was concerned, like you, that they might see money in there that isn't really there. You know what I mean? Checks already written and in the mail but have not been cashed by the parties they are written to and such.

[SleeplessInMI]

I have my 341 coming this Wednesday. I filed with a good amount of money in my bank account. My lawyer told me that it won't be an issue because the Trustee understands that just because your bank balance shows that you have money that you don't actually "have money." Guess I will see on Wednesay...

[FLGirl]

Ty

Good luck. Please let me know how it goes... this is too scary for me. (I sent you a private message, btw sleepless..)

I'm also upset to find out that they will take your next year's tax refund. You have to fill out a tax form and you will have one year to submit the funds to them. I really depend on my tax return!

[ducksinarow]

Are you certain they take next years tax refund? If so, that totally stinks. We will not make it if they do that. We depend on that money to get us through the year.

[FLGirl]

...

Yes I'm pretty certain. I live in FLorida, but i just spoke to a friend in Arizona and she said when she filed, she had to fill out a tax form, and that within one year you have to pay them the tax refund.

I also checked out ch13 and they also take your tax return for that too.

I, too, depend on my tax refund I'm a mess right now. I thought bankruptcy was supposed to help...

[SleeplessInMI]

I pay the IRS money every year so the tax refund thing is not an issue for me... The Trustee can pay mine for me if he wants though

PM answered

[ducksinarow]

Well my laywer seemed to think differently. I even asked him when we filed and he said it shouldn't be a problem. He listed our tax refund money as income each month (divided it by 12) and we still don't make enough to cover our expenses.

For some people it might not be a big deal, but for us it's how we survive.

[craigerzz]

I have heard that they take the tax return in some instances, but not all. It seems that it's left up to how aggressive the trustee is from what i've read, cause some people have it taken and then other dont.....

[FLGirl]

?

Craig are you speaking of the future tax return?