Need to sleep...HELP!!! Spending History and assets when filing for CH7

[tools2teach]

Are bank statements looked at when filing for chapter 7 to see what your spending habits are and how will this effect my filing?

Assets...when you disclose assets, is this based on an audit from a person that goes into your home and pokes around to see what's of value or is this based on what you say on paper?

I live in California.

[ToughSpot]

I would say there is a 50/50 chance they would review your spending habits. Without more specifics on your case or basis for concern it would be difficult to advise if you have anything to worry about.

As far as assets go first you want to tell the truth. Getting caught in a lie could result in your whole case being dismissed. Having said that unless you draw specific attention to some asset in your filing I have never heard of the court sending someone out to inspect the contents of your home.

Sleep Well,
TS

[lrprn]

Are bank statements looked at when filing for chapter 7 to see what your spending habits are and how will this effect my filing?

Typically your attorney or the trustee will ask for the last six full calendar months of pay stubs and documentation of all other income sources before you file. Some trustees will ask for documentation of income between filing and the 341 meeting as well. These will be looked over generally. Only if something shows up that raises issues of fraud will they be gone over in fine detail.

Assets...when you disclose assets, is this based on an audit from a person that goes into your home and pokes around to see what's of value or is this based on what you say on paper?

You tell your laywer the assets to include on your bankruptcy filing forms. After doing an independent review of your financial past, your trustee can usually tell that the assets listed are correct.

Again, only if something shows up that raises the possibility you are hiding assets or deliberately lying to the court will a more extensive review be done. That review could include going into your home to confirm all assets are indeed listed.

As long as you aren't trying to commit bk fraud or hiding assets when you file, you'll be fine.

[backtoschool]

If by "spending habits" do you mean are they going to look at your bank and credit card statements for luxury purchases and preferential transfers to family members, then the answer is "yes". Most districts look back at least six months of bank statements and credit card statements. My district looks back a year. If a case goes to the US Trustee, then they often will go back 2 years or more. YMMV.

[liz417]

I think if you have questionable "spending habits", time is your friend right now. You want to let those charges "age" as much as possible. The Trustee (or his assistants) don't have time to go through your statements line by line unless they suspect something.

[Faust]

Can you tell us what you spent money on that you are concerned about? It might be something that is not a cause for worry any way.

[Penny Less]

What about spending habits with your own money?

I had a conference trip on the 6 month prior mark that didn't work out like I hoped (didn't network for jobs as planned, stayed too long but it was rent free). It wasn't extravagant but I wasn't really employed either.

[Flamingo]

Are bank statements looked at when filing for chapter 7 to see what your spending habits are and how will this effect my filing?

Assets...when you disclose assets, is this based on an audit from a person that goes into your home and pokes around to see what's of value or is this based on what you say on paper?

I live in California.

As indicated by other posters, "yes," and be prepared to provide anywhere from six months to one year of bank and/or charge card statements. You may also be required to explain every transaction/charge/deposit/check written/withdrawal in excess of a certain amount, say $500 as an example.