decied to file BK7 - questions about $$

[angles]

[NoMoreCards]

The "snapshot" is filing date.

[LJoutWest]

We were going to file on a Thursday, when we had $2 in our checking account. There was a miscommunication between us and our attorney and he filed the following Tuesday. While, on Monday, I got paid and my direct deposit went into the account and we had around $1800 in there. Guess who had to pay $1800 when we had our 341 meeting? Yep, we did. Bottom line, have very little money in your checking account when you file is my advice so file during a time of the month when his occurs naturally for you.

[StartingOver08]

The snapshot is the BK filing date for bank balances.

The income that is used is the six full months prior to the filing date, but excluding the month in which you file. If you file BK anytime during the month of April 2010, then the lookback period for income is Oct 1 2009 thru March 31 2010.

Listen to LJ above - make sure your bank balances are within your exemptions on the filing date.

[angles]

thank you everyone, that helps.

[blockhead]

I suppose this is obvious but a snapshot with cash is simple - what about property (real estate or non-exempt stocks)? Is that a snapshot of the value at the time of filing? I assume not as the bk estate includes the property above the exempted amount and/or the stocks.

[StartingOver08]

Yes, at the time of filing. In order to determine the amount above/below your exemptions, a specific date has to be used. So your assets and liabilities are as of the BK filing date.

[blockhead]

OK, so what is the asset? If I have a stock worth $10 on filing date (I don't , this is just an example) and it goes up from there so that by the time the 341 rolls around it is worth $20 a share, who gets the additional $10 - me or the trustee?

[StartingOver08]

The valuation of the stock is as of the filing date.

Assuming you exempted everything you could with your exemptions, including the $10 stock, then when the Trustee files their notice of abandonment of your assets after your 341, the stock is yours. You can not sell the stock until after the notice of abandonment, and it is better to wait until after your discharge. But yes, it is just that simple. The filing date is the effective date of valuation.

If you did NOT exempt the stock for whatever reason, then the stock belongs to the BK estate and the Trustee gets it.

[JackBondLove]

The valuation of the stock is as of the filing date.

Assuming you exempted everything you could with your exemptions, including the $10 stock, then when the Trustee files their notice of abandonment of your assets after your 341, the stock is yours. You can not sell the stock until after the notice of abandonment, and it is better to wait until after your discharge. But yes, it is just that simple. The filing date is the effective date of valuation.

If you did NOT exempt the stock for whatever reason, then the stock belongs to the BK estate and the Trustee gets it.

I'll play the Devil's advocate here - what happens if on the filing date, the petitioner had 100 share @ $10, but the stock price *fell*? I suppose that the BK estate just takes the loss. But if it were to go up, shouldn't the BK estate take the gain as well? It sounds like heads the petitioner wins, tails the BK estate loses!