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I am confused why having cash in bank account is bad when filing

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    #1

    I am confused why having cash in bank account is bad when filing

    I am about to receive a full paycheck this Friday but will be filing on Thursday. I have read some posts about people worried about the money in their account when filing and I am concerned I suppose. Will the trustee take or freeze our bank account?

    I had been out of work for a while before I landed this job and we need to pay some bills that are overdue but if they are going to freeze our account how can we pay our car notes and utilities? And what about groceries and normal expenses such as gas for the car, etc....

    When we file our account will be near 0 but the next day I am expecting a paycheck direct deposited.

    We are filing in SC and pro se at the moment since we can't afford an attorney.
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    #2
    It really depends on what state you live in...

    What you own at the time of filing becomes part of the bankruptcy estate. For items - including cash - to be 'safe' you need to be able to exempt it. Some states allow you to exempt more or less of certain items, including cash. For example in GA, there is a $600 wildcard exemption good for any asset. Also, unused homestead exemption up to $5,000 can be used as additional wildcard. Those are for single filers, so a married couple filing joint can exempt 2x that much. If all the homestead is used to cover home equity, then less cash can be protected.

    After filing I believe its assumed your income (which you list in your schedules) goes to your monthly expenses.
    Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
    (In the 'planning' stage, to file ch. 13 if/when we have to.)

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      #3
      The reason is IF you have any money in your account the day you file you have to exempt it or the its up for grabs for the Trustee...Thats why everyone says keep it low to zero. After you file your a. o. k....
      Filing BK is a snapshot of what you own the day you file...
      Good luck and I know its stressful

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        #4
        due to my filing, I have chosen not to have a bank account for the past six months now. I pay by cash or money order. Right after my 341, I do intend to open one up.

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