Cash in Bank on the day you file

[RGMLM]

Talked to my bk lawyer this morning and thought I would share this bit of info he told me I (I live in Calif.).

He said that the trustee views your bank balance as your cash balance on the day you file for a particular bank account and that outstanding checks are not deducted. Thus if you write checks near the time you file - don't do it - get money orders instead said it will be deducted from your checking account right away. For example if your bank balance is $100 and you have a $50 outstanding check, the trustee views your cash balance as being $100

This is a big issue for me as I plan on filing 11/3/09 and I write some pretty big daycare checks on the first, but they won't clear the bank for about a week.

[StartingOver08]

Yes, that is why we suggest paying everything by money order in the weeks leading up to the filing date so all of the outstanding items CLEAR before the filing date. No checks, No EFT's, No ACH's, No debit card amounts etc. Use cash or money orders in those few weeks so you have an accurate actual balance.

[aljohnson007]

Timing is most important. My main deposits are on the 1st of the month but sometimes, it gets there on the last day so I filed on the 28th just for insurance. On filing day, try and keep your balance around $100 or less.

[mamaluv]

I filed in CA and never once had to provide a bank statement-to my lawyer or the trustee.

[frogger]

I filed in CA and never once had to provide a bank statement-to my lawyer or the trustee.

That's amazing..........

[weRN2deep]

I filed in CA and never once had to provide a bank statement-to my lawyer or the trustee.

Do you mind if I ask what district? I am in CA too.

[mamaluv]

Do you mind if I ask what district? I am in CA too.

Eastern District

[Juls]

I filed in CA and never once had to provide a bank statement-to my lawyer or the trustee.

Our lawyer advised that it depends on the trustee one of the trustees will always ask for everything and the others only ask some times.

I am in the Northern District of California.

[Moneypenny]

In California isnt some money in the bank allowed as an exemption?
I have a lot of questions about money....

Moneypenny

[Juls]

In California isnt some money in the bank allowed as an exemption?
I have a lot of questions about money....

Moneypenny

We were allowed to exempt some money in the bank because we had not used up our wild card amount.

So it depends. If you do not have any of your wild card exemption left you might not be able to.

Juls

[lrprn]

This is a big issue for me as I plan on filing 11/3/09 and I write some pretty big daycare checks on the first, but they won't clear the bank for about a week.

Is there any particular reason you are filing on November 3 and can't wait two more weeks until all your day care checks clear your account?

No matter what day you file between November 1-30, the six-month lookback before filing for income is still May 1 to October 31. Is there another reason you have to file right on November 3?

It's very possible to plan your filing day specifically so all checks written will clear your account before filing. Any checks you aren't sure of, then you use money orders to pay those bills instead. It doesn't have to be all or none.

[justplaintired]

Best advice, don't file until you know your balance is below what is allowed. So if you balance is too high on the 3rd wait until it goes down. Our paralegal actually called the morning she was going to file to check our balance. So don't file on the 3rd if your balance is too high.