What do you do with all the "extra" money?

[LSUTiger32]

Good point there by BooBoo, in Louisiana (god love it) we have a nice fat ZERO DOLLAR exemption for cash.

[music12]

zero is INSANE. what a fresh start it gives you with zero money. they'd better not complain if people over there end up with some untraceable cash under their mattresses.

[LSUTiger32]

zero is INSANE. what a fresh start it gives you with zero money. they'd better not complain if people over there end up with some untraceable cash under their mattresses.

We keep it in our freezer in Louisiana! ;)

[OhioFiler]

We keep it in our freezer in Louisiana! ;)

LOL. He received quite a prison sentence for that!

[needachance]

See, in Colorado I think it is 300 is the cash exemption. We are wondering the same thing. We have to wait to file because my husband is a seasonal employee and goes on job attached unemployment in the winter so we have to wait until he is making good money again in the spring to file because we cannot have the money we always save for winter in our accounts or it will be taken. Fresh start indeed!

[debtmonster]

What I want to know is what triggers the court to know that you have all of this "extra" money that people seem to talk about after their bankruptcy is over and worry about you going into a Chapter 13 after you've been discharged from a 7.

How does the court know? Are they secretly polling your checking account to see if you have money left over every month after you're discharged?

I really don't have much left over only for the fact that we had 3 incomes before. Now we only have about 40-50% of the income we had in 2007. If I had the original incomes back, we could have a few grand extra like others here have said.

I am just wondering... let's say I go out and buy a car for $7,000 cash a month after discharge because I managed to save up or borrow cash from a relative. Is the court going to write me and say, "How did you buy that car and get it titled in your name only 60 days after your discharge?"

How would they know? If you had to furnish copies of your bank statements prior to your bankruptcy and you're no longer furnishing them after the bankruptcy, I don't see why people scare people in making you think you're going to be in trouble just because you have "extra" money left over. I thought as long as you are under the median when you file, then you are safe. Correct me if I am wrong and show me a few real live examples if you know. I am sure lots of people would like to know about this if it's possible.

My attorney told me I could buy a car now, but to make sure that I don't have too much equity in it and that I would be better off waiting until November. After reading a few posts on here, I think I am going to simply wait until the last possible day when the bank finally gets around to actually coming and take the cars. We have 2 cars financed by 2 different banks. So if one car gets taken 30 days after discharge and the next one goes 70 days after discharge, then I will try to buy a car on day 70 or 71... because public transportation = NO FUN.

[booboo]

Your cash balance is only on the day that you file, however some have said that they will look at your Bank Statements at your 341 meeting. At my 341, the Trustee only was interested in seeing the statement printed out on the day of my filing, then he gave it back to me, as well as my Tax Return Copies.

My understanding is they can only do the 6 month look back from the day you file and going forward is not an issue, that is of course he decides that you did not qualify on your filing day based on your filing documents.

Also, my attorney hoped to get a certain Trustee and we did and was relieved, so a lot has to do with the Trustee apparently.

BooBoo

[debtmonster]

My trustee didn't ask for a single thing other than our driver's license and social security card. With the past 2 years of tax returns, they could see a nearly 50% income drop from one year to the next. Maybe because my income was on the downstroke, the bankruptcy made sense and they just push it through to get it done.

So if you could make all the money you want pretty much the day after you file or the day after your 341 meeting, then why do people keep posting scary messages such as getting forced into a Chapter 13 and all that stuff? As long as you qualified for a Chapter 7 before you filed, what is the big deal later on?

I am still not understanding the logic of many posts I see on here of how one day you're broke and qualify for a Chapter 7. So then you file and your 341 goes through. And now you get a job for $100k/yr. Why should anything change as long as you qualified prior to filing? If you were borderline 7 to 13 from the get-go, that's one thing. But if you run into money after the 341, isn't that no big deal?

[LSUTiger32]

LOL. He received quite a prison sentence for that!

Yeah.....and he deserves it. Typical politician that gets to stay in office too long and decides it's about him now and not his constituents.

[booboo]

Monster,

I think that they get into trouble because of their schedule J. The trustee looks at these schedules and does have the right to schedule a closer look by not concluding the meeting and calls for another 341 on the matter. An audit would be the other thing.

If the Trustee thinks that you are being dishonest, he may call for your bank statements up to the meeting and I assume he may do many things, including forcing you into a 13. If they prove you hid something and he thinks fraud in your filing, but if he can not prove it, this would be a way to "punish you".

I too can not understand why some here say to wait. Remember if you are being above board and honest and have met the law as stated, you income etc is from the date of filing and back 6 months.

We too, he asked a few questions and that was it. Like I said, he had our tax returns and bank statements to filing date and at the conclusion of the meeting, he just gave them back to us.

However, he did not say have a good day, good luck or anything like that...he was very serious, just called out in the room to see if there were any creditors present, hearing none, the only thing he said was "Hearing Concluded".

BooBoo

[debtmonster]

Yes, I was honest with all of my income and everything. Everything was there in black and white. We made almost $80,000 in 2007 and then in 2008 my tax return shows us making a gross household income of $33,000. I don't see what the big deal is if we were to buy a car right now before our discharge. I mean, how would they ever know if we did or not? To me, the gov't doesn't seem all that smart. If they were, they wouldn't be trusting "me" to bring in my own bank statements. They would simply check with all banks that I do business with and get all of that data electronically. When you owe money to the IRS, they seem to have no trouble in knowing when you have money and when to take it. I don't see why a bankruptcy court would have any issues. It boggles my mind how gov't agencies ask you for the paperwork instead of simply contacting the other agencies themselves and getting it. Why do they trust a person to do it? For all they know, you could have doctored the documents to your liking. They don't ask for them sealed or anything.

Look when you go to a college and they want your previous school records. They won't simply take them. They only accept them "sealed" from a previous school and never let them go through your hands. I don't understand why the gov't is not like this in all aspects. They make it so easy for themselves to be manipulated.

Anyway, as I have 2 cars in my possession right at the very moment, I don't need to go out and buy another this very second, but if I found a spectacular deal and wanted one right now, I don't see why there should be any risk of me getting into trouble. So far nobody has given me the cold facts about why I should not buy a car before discharge and how I could get into trouble.

As soon as somebody could give examples of somebody who got into trouble, we would also have something to learn here.

[booboo]

Do not see any problem with that. I would however wait until your 10 days post 341 to do it. That way you will be sure the Trustee does not file any objection to your petition and you are simply waiting for your 60 days to elapse.

BooBoo

[OhioFiler]

Yes, I was honest with all of my income and everything. Everything was there in black and white. We made almost $80,000 in 2007 and then in 2008 my tax return shows us making a gross household income of $33,000. I don't see what the big deal is if we were to buy a car right now before our discharge. I mean, how would they ever know if we did or not? To me, the gov't doesn't seem all that smart. If they were, they wouldn't be trusting "me" to bring in my own bank statements. They would simply check with all banks that I do business with and get all of that data electronically. When you owe money to the IRS, they seem to have no trouble in knowing when you have money and when to take it. I don't see why a bankruptcy court would have any issues. It boggles my mind how gov't agencies ask you for the paperwork instead of simply contacting the other agencies themselves and getting it. Why do they trust a person to do it? For all they know, you could have doctored the documents to your liking. They don't ask for them sealed or anything.

Look when you go to a college and they want your previous school records. They won't simply take them. They only accept them "sealed" from a previous school and never let them go through your hands. I don't understand why the gov't is not like this in all aspects. They make it so easy for themselves to be manipulated.

Anyway, as I have 2 cars in my possession right at the very moment, I don't need to go out and buy another this very second, but if I found a spectacular deal and wanted one right now, I don't see why there should be any risk of me getting into trouble. So far nobody has given me the cold facts about why I should not buy a car before discharge and how I could get into trouble.

As soon as somebody could give examples of somebody who got into trouble, we would also have something to learn here.

Well for starters the admissions office at the local community college isn't headed by a lifetime appointed federal judge. If you get caught cheating with the school you merely end up having to go to school on the internet. Try cheating a federal judge by creating false bank statements and see if you can still get your bankruptcy.

[debtmonster]

Well for starters the admissions office at the local community college isn't headed by a lifetime appointed federal judge. If you get caught cheating with the school you merely end up having to go to school on the internet. Try cheating a federal judge by creating false bank statements and see if you can still get your bankruptcy.

And what is to trigger you getting caught? You always seem to omit those facts out of your statements. How convenient.

[OhioFiler]

And what is to trigger you getting caught? You always seem to omit those facts out of your statements. How convenient.

Do you think these trustees and court officials are stupid? Don't you think every scam imaginable has already been tried on these people? The trigger is they can usually tell when someone is full of crap.

You tell me what the trigger is for NOT LYING under oath. For me, it's called integrity. Anyone who supports the concept of committing fraud or lying under oath and publicly posts such support doesn't belong on a forum like this.