Depositing paychecks and immediatly withdrawing them?

[Epic]

Due to dreaded judgements, it is difficult to keep a checking account going - but I need one to cash my checks. Will it pose a problem when I file in a few months that I have been depositing my paychecks and pulling them back out the second they clear?

[scorpion35]

for $3 u can cash them at walmart

[tyson24]

Can you provide proof of what you spent your money on? As long as it is explainable, I do not see a problem. Honestly, go cash your checks at Walmart. You will be better off I think. Keep receipts. As long as you weren't making large purchases on lavish things, I think you will be okay.


Not legal advice...I am not an attorney

[keptdigging]

Absolutely not... you have to eat. Although cashing them somewhere else might be a safer choice to insure a creditor with a judgment doesn't hit the account while you're waiting for the check to clear.

If you want to go the extra mile, save receipts so you can show where the cash went. (Some get asked for this at their 341, but I didn't--and I sold a bunch of assets.) And a key legal point is that your motive needs to be to pay your necessary expenses (housing/mortgage, food, medical, clothing, transportation... all the usual suspects)--not to hide the money from creditors. The fact that paying necessary expenses does indeed happen to keep the money from creditors is okay -- just don't ever say that is your intent.

You may want to search other threads (especially in Collections) for ideas on how to handle money without having it in the banking system.

And I'm not an attorney either but to quote my attorney: "They want you to eat."

[Epic]

thank you for the prompt responses. These are Company checks from a family ran business, Walmart will still cash those? They are 1099's. But don't I have to show monthly income to reaffirm my home?

[tcreegan]

Hi epic,

Just be able to document where the money went, we did just what you are doing and it was no problem.

For the house reaffirm, what will be needed will vary by lender, from what I have seen on the forum, most will just have you re-sign the original terms.

But why reaffirm? Usually not a great idea unless you have a low fixed rate or lots of equity.

Tom in Colo

[Dougie011]

I use a credit union and I can just tell them I want to cash my check and they do. I don't have to wait for my check to clear and I don't have any money in my account. I don't have any problems cashing my checks, do other places not due this?

[momofthree]

thank you for the prompt responses. These are Company checks from a family ran business, Walmart will still cash those? They are 1099's. But don't I have to show monthly income to reaffirm my home?

You can always cash them at the bank that the check is drawn from. You don't need to have an account to do that, they withdraw the cash directly from the account, and so there is no chance of the check "bouncing."

[tobee43]

we did that for over 2 years....as soon as our money hit the bank...we withdrew it.....we had to, we left the state and had NO clue if someone got a judgment against us or not while we could not be served. the county we use to live in was notorious for allowing companies and others to get judgments while never serving the summons. so we knew we could be tracked interbank...with ss#'s so we would draw out asap.

the trustee never asked a word about what why or when.....

[wsy]

You know the best way is avoid the deposit and just cash the check..If you get audited and they look at the statements it will not show up.

[tobee43]

You know the best way is avoid the deposit and just cash the check..If you get audited and they look at the statements it will not show up.

not really....since you have to provide your pay stubs...that's why we did auto deposit...it that was not only our bank statements, but it was also proof of our pay.

[SunkShip]

If your checks are drawn on a local bank you should cash them there, you do not need to have an account to cash a check at the originating bank. (Or I would never take a check from my brother.)

If I had a judgment on my account my bank would not let me cash a check free and clear, because the pending charge would be sitting on my account and when I attempted to cash they check they would insist I deposit it so the pending amount would clear. (My bank is sticky about check cashing though, your experience my vary.)

If it is not a local bank then cashing at Wal-Mart or a grocery store with check cashing is your best option. Neither will let you cash hand written checks though, they must be printed payroll checks. (my experience- someone else may have other info.)

Would it help to get a new bank account at another bank? Or would the judgment just find it and go after the new account?

[tcreegan]

Hi all,

When I go to cash a check on the bank it is from, they always want to charge me a $5 fee if I don't have an account with them.
This seems wrong to me, I can understand the $3 from Walmart but not $5 from the bank the check is drawn from.

Tom in Colo

[tyson24]

I have to cash rent checks at US Bank (because my renters have bounced checks to me) and they charge me $5. makes me so mad!

[Epic]

I had thought about doing this, since I am a 1099 Employee I just get regular hand written business checks and could easily cash them at the originating bank. However, I *used* to bank at the originating bank until I got a judgement at it got seized. Can I possibly go back and cash them there?


My biggest fear is not being able to show monthly income when the time comes to file. I am still learning (just ordered the Nolo book today), but they are going to want to see monthly income in order to reaffirm my mortgage - correct or am I mistaken? I only have one bank left in my area that I have not used yet...so my options are getting slim.