Cash after filing?

[BkJay]

I know your supposed to run your cash low at the time of filing but what about after? Can I file right before a paycheck,then get paid and keep the check? Does the trustee ask how much cash you have at the meeting? I can run my cash about out by paying attorney fees but what happens after filing? Can I start saving money right after filing to find a new place to live (giving up home)? I don't want to save two paychecks before the 341 to have the trustee say "how much cash you got on you" then take it. Am I over thinking this or iss this a concern? I'm in Ohio if that helps.

[lrprn]

I know your supposed to run your cash low at the time of filing but what about after? Can I file right before a paycheck,then get paid and keep the check?

When you file Ch 7, your bankrutpcy estate is set on your filing day. What's in your accounts on that day is what is documented on your filing forms.

Does the trustee ask how much cash you have at the meeting?

They look at what is listed on your filing forms. Some trustees will ask you to provide all paycheck stubs you've received between filing and your 341 meeting at your 341 meeting. If you are filing using a lawyer and this may create issues for you, ask him/her whether your trustee is one that routinely does this.

Can I start saving money right after filing to find a new place to live (giving up home)?

Yes.

Am I over thinking this or iss this a concern?

Maybe a little However, making financial decisions with some knowledge about what might happen is far better than winging it or guessing, then finding out later you caused yourself big problems that could jeopardize your case.

Keep on asking questions. We'll help you sort things out as best we can.

[ToughTimes]

BKJay,

There are two districts in OH. We filed in the northern district. Our attorney wanted paystubs for the entire look back period used for the means test, but did not ask for paystubs subsequent to that time.

At the 341 the trustee asked the usual "has there been any change in circumstances" question, but no newer paystubs were presented, nor were any newer paystubs requested.

As LRPRN states, your bankruptcy estate is created on the day you file. What you own on that day is the bankruptcy court's to administer, less your exemptions, until the trustee states differently (on papers you will be able to access in PACER).

Also as LRPRN states, you are free to start saving the day after you've filed. Since we were no longer making payments on debt that was to be discharged in the bankruptcy, we were able to save quite a bit more after filing, as I hope and pray you will be able to do, too.

Your attorney should have a very informed opinion as to what your trustee is likely to ask for as well as what your trustee is not likely to ask for. That's a fine question to be asking at consultations with potential attorneys, as you definitely want to choose an attorney who has very cordial relations with your area trustee(s).

[DeadManCrawling]

We were in such financial distress, and had finances so out of control, that we were able to file 7 even though we were above median a little.

In the first month after filing, we saved nearly 10k. No questions were asked at the 341, and that number will likely continue for us.

The reason we saved so much is that our housing costs were nearly 7k per month, and we were able to claim them as actual expenses. You cannot do this in all districts, which I see as inherently unfair, but it's the law as interpreted on a district level.

After the 341, we moved into a MUCH less expensive place, no mortgage payment and so on. Our electric bill dropped from 1k per month to 200/month. Our other expenses were all wiped out.

So there is excess money there, but in our situation, it didn't affect anything. Generally, money after filing is nothing to worry about.

If you live in a district that considers money saved by surrendering a home as possible funds for a CH 13, this could be a concern.

As noted above, we were also asked if there had been any changes to our circumstances. We answered no, since we had not yet moved as of the 341. The trustee also asked where we planned to live after surrendering. We answered honestly and that was the end of the matter.