Need Advice -- Is It OK To Deposit Check in My Bank Account?

[celrelief]

I filed Chapter 7 on 5/20 and had my 341 last Thursday (6/23). Everything went fine and the last time I checked PACER, the latest status update was the entry of the trustee's Report of No Distribution -- No Funds. Anyway, here's my question: my father gave me a check for $2000 a few days ago and I have been hesitant to deposit it into my account. My attorney said that it doesn't matter what goes into your bank account after you file BK, since the BK looks backward from the date of filing and not forward. Is this correct, and if so, am I OK to put this check in my back account? I'm unemployed and I really need the money to pay my bills. Thanks for your help!

[jeep75]

Our lawyer said the same about it not mattering after you file, but I have read time and time again on these forums where the trustee requests info up to the date of the 341.

I also read a post by Frogger that said you can be scrutinized until discharge and even case closure.

I've read other posts on this forum to take the check and cash it at your father's bank all you have to do is show your license and in some cases pay a fee.

[celrelief]

So even though I've been through my 341 and Pacer's been updated with the Report of No Distribution, they still may monitor my bank account? What if I'm able to find a job and have paychecks deposited?

[daylate]

If you find another job I think you are okay as long as it wasn't a job that was waiting for you post-341. The odds of you being checked post-341 are pretty slim, especially if you are a below median filer who already has received a no asset no distribution report. Good luck.

[frogger]

You should not have a problem depositing the money. However.... this is a rather substantial deposit from someone who is "broke", so make sure that you have supporting documentation as to where the money came from if ever needed.

BK is a look back, not a look forward, but if your behavior brings you up on the radar after bk, you could have problems.

[AngelinaCatHub]

You should not have a problem depositing the money. However.... this is a rather substantial deposit from someone who is "broke", so make sure that you have supporting documentation as to where the money came from if ever needed.

BK is a look back, not a look forward, but if your behavior brings you up on the radar after bk, you could have problems.

It is my opinion NOT to throw monies into any account until you are discharged and closed. Long after our 341 we became an asset case due to preferential payments that was detected (and was done in ignorance). Have your Dad cash it at his own bank and give you the cash. Be safer, not sorrier. 'Hub

[buffetbuster]

What weve been doing is taking any checks, other than paychecks, to the bank that they were written from and cashed them outright. That way, you never have to show a deposit in your bank account.

[IamOld]

It is my opinion NOT to throw monies into any account until you are discharged and closed. Long after our 341 we became an asset case due to preferential payments that was detected (and was done in ignorance). Have your Dad cash it at his own bank and give you the cash. Be safer, not sorrier. 'Hub

Angelina - may I ask...how did you make a preferential payment? I just had - due to my own stupidity - a $1,300 loan debit from my account...which I wasn't going to pay...because I cannot afford it...is that a preferential payment? Will file BK in Sept...is that $1300 enough to make someone an asset case? That would mean, by the way about $70/creditor...less trustee fee.

[sunshinepa]

You can put it in the bank. The only way the trustee can look at your accounts is for him to request the statements, it's not like they have access to your bank online. If you are unemployed, I'm assuming you are under the median? I seriously doubt anyone is going to look for anything at this point, even the US Trustee, not impossible but highly unlikely.

[DebtHater]

I would put it in the deposit it. Even after filing I still had my pay check direct deposited. You're not expected to stop all finances after you file.

[helpmeout]

I got a bonus that was more than the check that your father gave you the day after I filed. I had no problem at all. I have been closed for over a year now.

The only problem that you could possibly run into is if your father owed you money before you filed for BK (money owed to you is an asset) and is just now paying you back. You would then have to disclose the check to your attorney unless you were able to exempt the money owed to you.

[discouraged]

I'd listen to Angelina/Cat.

[WhatHappened]

I filed Chapter 7 on 5/20 and had my 341 last Thursday (6/23). Everything went fine and the last time I checked PACER, the latest status update was the entry of the trustee's Report of No Distribution -- No Funds. Anyway, here's my question: my father gave me a check for $2000 a few days ago and I have been hesitant to deposit it into my account. My attorney said that it doesn't matter what goes into your bank account after you file BK, since the BK looks backward from the date of filing and not forward. Is this correct, and if so, am I OK to put this check in my back account? I'm unemployed and I really need the money to pay my bills. Thanks for your help!

People who are going through bankruptcy get money from their parents/family all the time. It is VERY common. You have a right to take money from your family to pay your bills and eat. Contrary to what some might think, the trustee is not monitoring what you are doing with your bank account. You already had your 341 and received a report of no distribution. It's not like you cashed a lottery ticket, received an inheritance or sold a hidden asset.

[gmk]

I'd take the more conservative approach in anything to do with your BK. You're already concerned about a possible paper trail and so why lose sleep over it. I'd Cash the check and don't deposit it if I were worried about it triggering something. As pointed out, things can happen. They likely won't but there's little inconvenience in not directly depositing the check. For example, many times people ask about changing banks where they may have loans or mortgages. Many replies will say there is no problem staying with the same bank but others have horror stories about freezing accounts. Which is the safer course? Be legal but be conservative. it takes away just another worry. Since you did ask the question, it's a concern. A little paranoia can be a good thing. Dealing with the concern is even better.

[newphoenix]

I'd wait...

When I filed Chapter 7, I too had a smooth 341 meeting and a report of no distribution on Pacer. Then a couple of weeks later I received paperwork from the US trustees office challenging my 7. They continued to request statements from after filing to try and prove that we could do a chapter 13.

I realize that my situation isn't typical but I would cash the check at your father's bank just in case.