Bank account balance - confused

[tknj99]

Hi all,
My attorney has me really confused. Everywhere i have read points to having as low a balance as possible upon filing. I get paid next Thurs (bi-monthly) and will sign the Ch7 paperwork next Tuesday with a bank balance of around $150 or less. The problem im worried about is that the attorney is telling me that they will file up to a week after we sign the paperwork and not to worry about the balance on filing date, and that the balance when we signed the paperwork is suffiicient.
I asked about the balance on filing day and was told that the trustee will look at that but they know that the account fluctuates thruout the month and that i dont need to worry.
With persoanl property i use up all of exemptions. I did read this online for FL exemptions:

Wages

222.11 - For head of family, 100% of earnings up to $500 a week; Applies to either unpaid or paid wages, or wages deposited in a bank account for up to 6 months.


Would this mean that $1000 or my bi-weekly pay is exempt?

Should i just spend down my paycheck when i receive it next Thursday to be safe?

Thx for the help..

[youngnbroke]

I also have read about how much your bank balance "should" be on the filing date. This must differ state to state because after questioning my lawyer about it...he just said "Well as long as you don't have like $4,000 in the account, you'll be fine" and that was it! We saw our lawyer again today (he is filing today, if not - tomorrow) and didn't even ask what our bank balance was. In all honesty, I wouldn't worry about it too much and if you are, call your attorneys office and double check with them. I wouldn't spend down money unless it was necessary! Good luck!!

[tay666]

Yeah, this varies by state exemptions.
Ohio, you are only allowed $400 cash on hand on filing date.
And there is no wildcard to cover any more.

Other states have completely different exemptions.

[Fallonedward]

Does anyone know how much cash on hand you can have in MICHIGAN on filing date.

[Medport]

Yeah, this varies by state exemptions.
Ohio, you are only allowed $400 cash on hand on filing date.
And there is no wildcard to cover any more.

Other states have completely different exemptions.

Just to be clear, this means $400 in your banking account on the day you file (or have the meeting with the trustee), correct?

[BKDebby]

My lawyer told me no more than $250 in my checking (Indiana). So I changed from direct deposit to where I go to the bank myself every Friday, and I deposit about 1/2 of my paycheck into my account and stick the rest in my safe at home.

[HakunaMatata]

Does anyone know how much cash on hand you can have in MICHIGAN on filing date.

This depends on which set of exemptions you use. If you use Federal, the unused homestead exemption ($10k+) can be applied toward cash.

[Fallonedward]

This depends on which set of exemptions you use. If you use Federal, the unused homestead exemption ($10k+) can be applied toward cash.

I will be using Federal and have no equity in my house

[Maine]

This 100% depends on what state you are in. In Maine I am allowed up to $400 cash, checking and savings combined. In Maine, the unused homestead exemption can not be used for money at all.
Sadly this does not interfere with my case...I wish I had more than $400 to worry about.

[tknj99]

FYI - I also posted this question on a BK lawyer site and got this response:

I am not your attorney, and I am not licensed in Florida. All I can really do is to give you some general information. I have never had a trustee take money from a client when it is on deposit in a bank account from wages. Where this normally comes into play in Northern OH is when some other non-exempt cash type asset is recovered for the benefit of creditors. This could be a tax refund, investments, savings bonds… The trustee will then determine the non-exempt value of the bank account to “add to the pie.”

You should confer with your attorney as to how to handle your next pay check. Unless you are making really big bucks, I don’t expect a problem.

In Cleveland filing is expected to occur in much closer proximity to signing than a full week. Maybe your district is different.

[tknj99]

Update: I spoke with my lawyer and he gave me the go ahead to spend down the account - food/clothing/etc.. and then we will file on a later date thanoriginally expected but before a pay date.
So im gonna make a car payment, do a Costco run, Walmart, food shopping, etc and try to get close to $100 in account just to be on the safe side...
None of the items i will purchase will be items that i will not need in the future, so it will not be wasted money..

[kartoons19]

I had $300 from wages (part-time job) in my account on filing day. I was concerned because Colorado does not have a cash exemption or a wildcard. The trustee could have also gone after 25% of my next paycheck that included the filing date. My attorney said it wouldn't be a problem because the amount was not large enough for the trustee to go after. She was right. At least in my experience, it isn't just about exemptions, but whether the amount is large enough for the trustee to go after it.