Money in checking account on day of filing?

[kcfaninin]

We are filing Ch 7 on Monday (Jan 4). I have been reading on the boards about keeping very little in your checking account on the day of filing. Our attorney has not said anything about this to us.

Our bank balance will show $700 in our checking on Monday, but our checkbook register will show $19. Our insurance and other outstanding checks will not have cleared by then.

Will this be a problem and how will the Trustee know what's in our account on the day of filing? We won't be seeing him until our 341. Are we supposed to take a bank statement to attorney's office on Monday that shows what our balance is on that particular day?

[lrprn]

Our bank balance will show $700 in our checking on Monday, but our checkbook register will show $19. Our insurance and other outstanding checks will not have cleared by then.

What's matters is your bank balance on the day of filing. There have been rare cases around the country where the trustee took whatever was in the account that couldn't be protected, even knowing that checks for mortgage, cars, etc were pending on the account.

Ask your lawyer whether your entire $700 can be protected when you file or not. It's a relatively small amount - that's in your favor.

Will this be a problem and how will the Trustee know what's in our account on the day of filing? We won't be seeing him until our 341.

Your lawyer can tell you if the $700 on filing day will be ok.

Are we supposed to take a bank statement to attorney's office on Monday that shows what our balance is on that particular day?

Typically the court takes your word on what's in the account on filing day. If your trustee wants to see something official from the bank, he/she will let you and your lawyer know.

To be 100% safe in this situation, consider making a printout that shows your account on filing day and have it notarized. Better to have it than not have it and need it (although frankly your chances of needing it are very small). Give a copy to your lawyer when you go in to sign the forms.