How does it work with bank statements?

[BkJay]

My last bank statement ended on Feb 10th so I won't get one until Mar 10th or so and I was hoping to file before my next statement. My statement shows about $500 in the bank but I have since spent all but about $50 on bills.Will this cause a problem with my last statement showing $500.00? I know I have a cash exemption of $400 but will the trustee question the fact that my statement shows $500?

[AngelinaCat]

If you have online banking you can print out a statement any time you wish. If you don't, I don't think you will have a problem as the amounts you are worrying about are not that large.

If you are still worried, have the receipts that show what you spent the money on. If you are NOT in the habit of keeping receipts, you need to start now so that you can have a history of where your money goes. Keep these reciepts for a year and create an Excel spreadsheet, if you don't have Quicken, so that you can create a realistic budget for living post BK. You should not want to get into this mess again. As best as you can, I recommend going 'cash only'.

Good luck to you

[BkJay]

Thank you for the quick reply and advice. I wasn't sure if I could print out my online statement because it wasn't an "official" statement, but I will now do so.

[AngelinaCat]

We no longer get print statements from our CU, and had not when we filed. We turned in six months worth of the statements via our online account and printer. No one questioned it.

[midnight]

I didn't have to supply any bank statements.

[BKDefender]

BKJay - I'm not sure what your state requires, but in Nevada our trustees want to see a bank statement that shows the exact amount of money on the exact date I file my client's bankruptcy petition. Sometimes I'll have the client sit at my computer, log into their bank account and print out a copy of their current balance so I'll have it in my files (and can update their petition in Best Case before printing for them to sign.)

--William

[BkJay]

Thank you,that clears it up a great deal for me. I always think of a million questions after I leave the attorneys office and when I was in there I was almost blank.

[pcn]

BKJay - I'm not sure what your state requires, but in Nevada our trustees want to see a bank statement that shows the exact amount of money on the exact date I file my client's bankruptcy petition. Sometimes I'll have the client sit at my computer, log into their bank account and print out a copy of their current balance so I'll have it in my files (and can update their petition in Best Case before printing for them to sign.)

--William

Is this something we would know before we filed? We filed (in AL) on Jan 15 but havent heard anything about this. There was a question about how much we have in savings and checking on averageon a form from the atty, but nothing else. Nothing said about the 341, but don't want to be suprised.

[BKDefender]

PCN - anytime there is a risk that a client's bank account will be over the amount that I can exempt with a wildcard exemption, I make sure they pay certain bills that will come due shortly after filing to run their balance down, and then I verify it before I'll file. No reason to have them turnover money to the trustee when they have a car payment due in three days or car insurance/utilities payment due next week. If the answer to the question as to how much you have in checking and savings is not even close to the maximum allowed by the state's exemption then an average is fine. Just know that the trustee doesn't care if you've written a check that hasn't cleared. If the bank balance is above the allowed exemptions, the trustee will want the excess.

--William

[pcn]

I am still a little unclear. Say that the day we filed we had $610 in checking, but this Thursday when we have our 341 meeting we have $10. AL has horrible exemptions (3k per person, total.) There is the possibility that even though that was a month ago, and there is nothing in it now, that the trustee may ask for $610? We used up our exemptions on person property and partially towards our vehicles (which we own outright, and exceed the exemption amounts). Thanks for any clarification.

[BKDefender]

A chapter 7 takes a snapshot of what assets you have on the date you file. That's why I tell my clients to buy weeks of groceries, pay an extra car payment, pay their utility bills early, fill up your car gas tanks, etc, until they are below the allowed wildcard $1k exemption in our state.

Just as an example, Nevada has a $1k wildcard exemption. If a person has $1,400 combined in a savings account, checking account, and cash-on-hand on the day they file BK, then they will have to write a check for $400.00 to the bankruptcy trustee assigned to their case because they're $400 over their allowed exemption on the date they filed. But if before filing BK, they buy $200 in groceries, $70 in gas, and pay their $130 utility bill that's due in 3 weeks, then they only have $1k when they file and they're fine.

--William