Cash in bank - how to handle ?

[idainc]

Will need to file CH7 in about 10 days and have about $2700 cash in bank. If we pay all outstanding bills prior we'd be down to about $1700 that we really need. Is there any way to buy exemptions like tools of the trade before filing and have it be OK ? Thanks.

[Ann]

Great question..also can the money you have in your account on the day you file be exempt up to a certain amount?

[newbie2]

Will need to file CH7 in about 10 days and have about $2700 cash in bank. If we pay all outstanding bills prior we'd be down to about $1700 that we really need. Is there any way to buy exemptions like tools of the trade before filing and have it be OK ? Thanks.

Take a look at your states exemptions. It may be enough to cover that $1700. BTW, if you are paying bills in advance via check do it soon so that the checks clear before you file.

You can also stock up on groceries, etc to cut the amount of cash on hand down.

[newbie2]

Great question..also can the money you have in your account on the day you file be exempt up to a certain amount?

Sure it can. Check on your states exemptions for what is allowed in your state, and make sure your attorney exempts it for you.

[idainc]

Dang - state exemption for us both is $300. We have an LLC and I plan on reimbursing the LLC for a trip I personally paid for, maybe replace that old laptop ( exemption for tools of trade ) etc. Take cash and buy groceries etc. Do I have to keep reciepts for every cent spent in the next two weeks ?

Or can I just plain old take cash out and say it was spent without reciepts ?

[momofthree]

Dang - state exemption for us both is $300. We have an LLC and I plan on reimbursing the LLC for a trip I personally paid for, maybe replace that old laptop ( exemption for tools of trade ) etc. Take cash and buy groceries etc. Do I have to keep reciepts for every cent spent in the next two weeks ?

Or can I just plain old take cash out and say it was spent without reciepts ?

That's fraudulent and not worth the risk. You have to claim all "cash on hand" regardless of whether it's in the bank or under your mattress.

I'm sure you can come up with some legitimate expenses to spend it on. Pay next month's utility bills, buy a $200 gas card, pre-pay a year's worth of car insurance, etc.

And, yes, I'd suggest that you keep the receipts just in case.

[idainc]

Well I just reimbursed our LLC for some travel expenses I laid out.

Thanks for the suggestion on prepaying things. I think that since I'm entitled to various # of months of groceries etc. and tools of trade I may go for tools of trade. In this circumstance the business cant operate without any cash and / or equipment.

Any thoughts on buying exempt property used for our business ?

[music12]

anything you pay now should NOT be done by check but by money order. otherwise, if the party you give the check to waits before cashing it and the money is still in your account, you're stuck with it. the trustee will take it and the check will bounce. however, if you take out a money order, the money is immediately taken out of your account.

yes, you can buy anything that's exempt, but do keep receipts, not because they'll necessarily ask you for it, but so that if they ask you what you did with it you'll be able to answer honestly without raising any red flags.

[justbroke]

Your LLC isn't necessarily a place to "hide" money. If it's a single-member LLC, many Trustees see this as no different than you as an individual. Be very careful. I know you don't have the money, but you probably should have had an attorney prepare this petition since you have a business entity involved.

[idainc]

I apreciate the thought. I can also have the LLC buy the exempt property as well. If I look at the whole pool of money vs. exempt property we are well under the doubled tools of the trade since the Mrs. and I are also co-managers of the compnay. I agree with your thought and thanks. There isnt necessarily any difference between the individuals and the LLC but since we're both filing together in a community property state your point is well taken.