Bank account balances

[jjsmith]

Last week we found a decision was entered in one of the lawsuits against me for a business lease. This was not good because my husband was going to put me on title to our home, so we could get the max homestead exemption. The judgment had not been entered yet, so we've be scrambling to spend my husband's paycheck he got on Monday before a judgment is entered. I went and spent everything on Monday & Tuesday and we filed today. Our bank account has a bit more than we were hoping, but I don't want to risk the judgment being entered before we file for our bankruptcy.

On Monday 2 of the charges that I made didn't clear until today. They have showed as pending on my bank account records until a few hours ago. I have a printout showing that they were pending on 12/1, but now they've recorded and posted as of today 12/2.


So, my beginning balance today was $208 and my balance of right now is $53. My attorney said the balance at the beginning of today is what we have to record. He said any money spent today doesn't count. I'm so frustrated because I made these charges on Monday and the credit card charge didn't process until today!!!

Is this what other attorney's have said?

I'm curious what other's experience is

[StartingOver08]

Yes, your attorney is right.

That is why we strongly recommend using cash or money orders the week or ten days before filing because the funds have to be cleared from the account before filing. You have two choices, your funds are either exempt or they are for the Trustee. In order for the funds to be exempt, it has to be listed that way on the petition. Hopefully your attorney is exempting the amount in your bank account. If he can not/did not exempt it, the Trustee usually wants whatever is in the account over the exempted amount. It is not considered spent if it is pending.

[music12]

well, what your lawyer should have told you is that nothing would happen on the day judgment enters. they would still need another court order to garnish your accounts and that usually takes a few weeks. he also should have told you to withdraw all them money from your accounts and then pay by money orders. then you wouldn't have to wait for them to clear.

i hope the $208 can be exempted or that you can afford to pay the trustee that.

[frogger]

In our area, it is taking two or three days for debits to actually clear the bank. When you use the debit card, it will show up and hold its place as a $1.00 transaction.

Only when it clears does it remove the correct amount. Normally, two days after the card was used.

[jjsmith]

The problem with a judgment in our state is that it becomes an automatic lien on an real property. They don't have to record a lien on the property, it's automatically there. I really don't want to throw away another $60K! I wasn't worried about any bank accounts, we took my name off of everything long ago.

[jjsmith]

If the trustee wants $208, he can have it, but I would have a hard time biting my tongue and not saying to the trustee, "Are you kidding me?? After discharging 1.5 million in business debt, you think $208 is going to help any of my creditors??" But if he wants it, he can have it. I just want my home and no more businesses!!!

[BobMango]

We had $80 in our account when we filed. Our attorney advised us that one of the four trustees that we could have drawn would have taken that money. The other three are more reasonable. We lucked out and got one of the nicest trustees.

Our bank did hit us with a $5 charge for the balance inquiry by the trustees office though.

[jjsmith]

Bob- So when does the trustee do a balance inquiry? Our attorney said under $100 was safe, so we'll have to see.

So your 341 was yesterday?? How did it go?

[music12]

The problem with a judgment in our state is that it becomes an automatic lien on an real property. They don't have to record a lien on the property, it's automatically there. I really don't want to throw away another $60K! I wasn't worried about any bank accounts, we took my name off of everything long ago.

oh, boy, what a state. so you were right to hurry up.

even if you took your name off, your husband could still have been liable for your debts. but anyway, you have filed so that's moot now.

[BobMango]

Bob- So when does the trustee do a balance inquiry? Our attorney said under $100 was safe, so we'll have to see.

So your 341 was yesterday?? How did it go?

The inquiry showed up the day after we filed, but it could have been done on the day we filed. My guess is that each district is different in how the trustees approach this particular issue in terms of inquiry and how much they will take.

341 went fine, I posted about it here: My 341

[jjsmith]

We're in Utah. Spouses aren't liable for each others debts here.