341 on 9/22 and Trustee needs reciepts....

[sassiebaz]

Trustee called me the other day and stated we need receipts for money spent from an $1800.00 withdrawl in the days before our BK filing. I called her back and of course she was rather short with me. I explained the better part of the cash withdrawl was deposited into our CU acct. to get our rent check. She said if it did not match dollar for dollar we need receipts. So here's the deal. The withdrawls she is referring to are TWO separate withdrawls totally about $1800. One was for $300 on 8/1 the other was $1560 on 8/8. The second was the one we deposited into the CU account then turned around and got a cashiers check for rent. The $300 was given to my teens for a youth group trip and for some shopping they did for back to school. Don't have receipts for that. What I DO have proof of is the bank deposit of the larger amount, and a copy of the cashier check for rent. Does this all seem OK??? Anyone think there will be any issues??? Lawyer still has not gotten back to me...

[newbie2]

The trustee called you instead of your attorney??? Regardless, you have the documentation you need for the large withdrawal. Be honest about the $300 withdrawal and just tell your attorney what it was spent on. There shouldn't be an issue about $300. Let your attorney handle everything else from here on out.

[sassiebaz]

Yeah, she actually called me. I left a vm for my attorney and he has yet to respond. I totally can verify the large withdrawl, so I figured I have nothing to worry about....but still wanted feedback. Thanks!

[justbroke]

First, I'm appalled that a Trustee called you directly when you are represented! I'm also disappointed that you called the Trustee's office yourself and they still didn't inform you that they should be speaking with your attorney.

Cash withdrawals within days (or even weeks) of filing will peak the curiosity of the Trustee! You need receipts for these items. This is to be sure that you're not hiding funds. I think that you can certainly prove that the majority of the funds (the $1,500) was spent on rent. I would be very very careful that the Trustee doesn't see that the rent check was actually issued the day of or after filing!

I must say that your Trustee is being very thorough.

[IamOld]

Wow - is the Trustee trying to get herself into trouble? Talking directly to you when you have an atty is like Lawyer 101 - what NOT to do! Is she trying to get herself disbarred or is she young/inexperienced???

Ironic though that this should come up...I'm filing on Sept 28 and took out $100 - at beginning of school I give $40 to son and daughter as super-emergency $$ to have (and never spend) plus put $20 in car in gas. I have of course no receipts for son/daugther and I don't keep gas receipts as 99% of the time I put it on debit...

Plus I spent about $50 on fast food over the last 3 weeks - spouse sick, and I worked like 16 hour days...

[AngelinaCat]

The trustee called the OP because the OP's attorney was NOT responding. This happened with us and is nothing to worry about.

In our case, the trustee was offering a compromise to solve our 'Preferential Insider' payment problem, and our attorney was on vacation. The deadline was looming, so the attorney representing our trustee actually called US to talk to us about it. THAT was the first we knew anything about this.

To the OP, get any and all receipts possible that you can gather. It sounds like you may have a 'preferential payment' issue going. They most likely are interested in the larger amount. Do your very best to connect all the dots regarding your acquisition of that money, and the transformation of it into the rent check.

Please keep us posted.

[sassiebaz]

~Justbroke....I had no idea she was not supposed to be calling me. When I called her right back and stated my name she quickly asked "Did you LISTEN to my message?" I said yes and that I included the bank statement of the account in which we deposited the same $$$ that was withdrawn. She said because they werent identical $$$ amounts, I still needed to provide proof....no problem I have the proof...and everything was done the same day..8/8-withdrawl/deposit/cashiers check for rent. So, I'm good. The $300 we can just tell her what we spent it on...but it is the withdrawl of $1K or more that is stated in the checklist....so I knew they would be asking.

~IAMOld....I don't think they will bat an eye at $100. It's usually anything over a certain amount....in my area it's $1k or more.

[sassiebaz]

FYI...still haven't heard from my attorney. I called yesterday A.M and our 341 is Thurs. He hasn't even called or emailed to let us know where we are meeting him or if anything else has come to his attention. I won't worry...just wondered if we are a priority?

[sassiebaz]

Angelina~ Why would a "rent check" be a preferential payment? Or are you saying they want to make sure it's not and that the $$$ was in fact used for something legit?

[AngelinaCat]

Angelina~ Why would a "rent check" be a preferential payment? Or are you saying they want to make sure it's not and that the $$$ was in fact used for something legit?

Yes.

The fact that such a large amount of money changed hands within the 90 days prior to your filing is what raised the red flag. The trustee wants to know if that money could have been used to pay back some of your creditors.

I know, it's rent, but that is the way the system works right now.

[sassiebaz]

Yes.

The fact that such a large amount of money changed hands within the 90 days prior to your filing is what raised the red flag. The trustee wants to know if that money could have been used to pay back some of your creditors.

I know, it's rent, but that is the way the system works right now.

Yeah, I get the raised eyebrows. I do have proof of the exchanges and Im not worried about it. I was more concerned about the trustee calling and being so short with me. I talked to a friend and they had this same trustee....she is very meticulous! We'll see....but I think it will be fine.

[btbeme]

A hard and fast rule to follow is DOCUMENT EVERYTHING 90 days prior to filing and until your 341. Keep every receipt. Get receipts even when they are not "normally" given. Make notes regarding the payment - date, to whom, why, how much, cashier's check #, whatever. Detail almost to the point of ridiculous on anything that might "look" different from the outside viewpoint of the Trustee. Keep info organized in a notebook. If you haven't done anything wrong, you will get the benefit of the doubt for making the effort to be transparent.

Just some advice from your Uncle btbeme.

[sassiebaz]

A hard and fast rule to follow is DOCUMENT EVERYTHING 90 days prior to filing and until your 341. Keep every receipt. Get receipts even when they are not "normally" given. Make notes regarding the payment - date, to whom, why, how much, cashier's check #, whatever. Detail almost to the point of ridiculous on anything that might "look" different from the outside viewpoint of the Trustee. Keep info organized in a notebook. If you haven't done anything wrong, you will get the benefit of the doubt for making the effort to be transparent.

Just some advice from your Uncle btbeme.

Thanks...although I wish my attorney would have said this to me. I know I said I can document the items in question, but still. I still have to explain $300 that my hubby took out while I was visiting my family. He got some gas, took our son out for a night, and gave him $$ for youth group. I realized after talking with him and matching the dates, I wasn't even in town...I have no receipts for that, but oh well.....I will ask my lawyer about it.

[justbroke]

sassie, I guess when your attorney is not returning the Trustee's call, it would be appropriate for them to contact you directly. I thought that the Trustee called you without attempting to contact your attorney and only after a reasonable time has elapsed, contact you. I just don't like Trustee's taking advantage of debtors, especially what I'd call a minor documentation issue. I mean, your 341 Meeting isn't until Thursday 9/22 and it's only Tuesday 9/20.

[btbeme]

Be prepared for your 341, even if your attorney isn't. I'd just assume he isn't.

I have a post from last year regarding what I learned in filing bankruptcy that goes in depth into prepping for the 341. Just a collection of what I learned from other people here, and it served me well.