What to Expect After Filing

[ksgirl38]

I'll be filing on Thursday and I'm hoping to get some feedback on what to expect after filing from those that have been through it.

The way I understand it is that the day of your filing there's basically a snapshot taken of your bank accounts. Do I need to provide a screenshot of my balance on that day or does the trustee get that themselves? I paid all my July bills early so it's pretty low right now, but after filing do they look at it again? Just wondering if I win the lottery the day after I file or deposit a large check if it will matter. Do I still need to keep the funds low in my bank account until the 341 meeting? Or does it matter?

How long after you file until the 341 meeting? Will I have to explain any of the money I spent prior to filing? I just don't know if I need to still be saving my receipts for groceries, prescriptions or anything else. I did buy some clothes and I didn't know if those would be scrutinized or not. Even though it's the first time I'd bought a piece of clothing in 6 months.

Is it 60 days from the 341 meeting before discharge? Is that correct?

Aside from me being shut out of my Sallie Mae account should I have to worry about any other accounts? Does anyone know if I can still pay online with Verizon or Toyota or should I be prepared to mail payment?

Thanks.

[btbeme]

1. Take a screenshot or go to the bank and request a VOD (Verification of Deposit). The Trustee will want to see balances for your filing date. Easy to supply; though some Trustees will request a VOD on their own.

2. Deposit anything you might regularly deposit, such as a paycheck. It will look odd to deposit a large amount of cash. The Trustee essentially owns all of your personal financial situation until discharge and has the ability to look at whatever he wishes, within reason. Be able to explain what you do, if ever requested. If you plan to win the lottery, do so after the 341.

3. 341 meeting schedule depends on the district, but expect about 3 weeks or so. You will find out a few days after filing.

4. Save receipts but don't worry. Chances are that, if your file is otherwise clean, you will not get asked for anything out of the ordinary. If you have nothing but "ordinary" expenses, I would not be a bit concerned. You are allowed to lead a normal life.

5. You are eligible for discharge the first business day that comes 60 days after your 341 hearing. That is the goal, if everything goes right. It may take more time after that for your case to be closed, which is the ultimate goal, but the 60 Day Club is a good place to be. Technically, creditors have 60 days from the 341 to object, so the actual date for discharge eligibility is the 61st day after 341, plus a day or two or three depending on if that date falls on a weekend or holiday.

6. Expect that all online accounts for listed creditors will be suspended (credit cards, Toyota, etc). Most likely (unless you have listed them as creditors because you owe them money) your utilities etc should still be available online. Some will come back online automatically after discharge; others you will have to request to be turned back on after discharge. There is sometimes some paperwork - including a copy of your discharge order - that they will request.

[ValleYum]

You mentioned stocks and a CD in previous posting(s). Be prepared to explain where that $$ went to the trustee.

Good luck on Thursday!

[AngelinaCat]

Our 341 occurred about six weeks after we filed. That will depend on your district. And I remember that we were asked if we owned any stock or bonds.

The attorney told us to have as close to zero in our checking account as possible on the day we filed. We actually were a little overdrawn. We were also asked how much cash we had on hand (about $18.00 or so between us.) None of that came up at the 341, nor did we have to provide a bank statement proving our account balance on the day we filed. Though we had it if needed.

Be prepared that if your account(s) are at a credit union, they will likely be closed. 'Hub had to talk to the CU's BK department and reaffirm our car loan and an overdraft protection loan in order to stay a member of the CU.

Good luck Thursday.

[hmsmith]

We were also asked how much cash we had on hand when we filed. I printed out our balance on the day we filed and gave it to my attorney...it was a good thing too because the trustee asked for it from everyone. For those people who didn't have it, the trusteee told them to get it to him right away, and although it shouldn't take long, it takes more time and just slows things down. He wants all of your info right then at his disposal. IF he wants to question anything about your spending or if he has any doubts, he may ask you to provide where XX.XX amount of money went. I didnt have any large spending prior to filing so I wasn't concerned. I wouldn't worry if you only had regular spending that you have each month.....if you've spend hundreds of dollars or cashed in CD's or closed accounts with large balances then I would be concerned.

Our 341 was also 6 weeks out from the time I filed. And then we had 60 days for creditors to object, and then we were discharged about a 9 days later. 2 weeks after that case was closed!

I have a toyota and I always paid that account online, and once I filed I couldn't. THey won't let you log in or anything. You'll have to mail in your payment. And they will send you (assuming you have a toyota) a single piece of paper early on (mine came about a week after I filed) that shows where to mail your future payments to. It's the department that handles the bankruptcy. I made sure I mailed in my payments about 3 weeks early because of the snail mail system and wanting to make sure nothing was late since I wanted to keep my car.

Also ...not sure if you're aware but once you file and the automatic stay goes into effect, you can't even call anyone that you owe money to. (i.e. student loans, car lender, any other creditors)....unless your attorney calls for you or with you. I did NOT realize this when filing. I tried calling my student loans more than once since I couldn't include them in BK and they would not talk to me. My attorney said If needed to reach anyone he would call them or conference me in on the call.

Hope this helps. GOOD LUCK!!!

[ksgirl38]

You mentioned stocks and a CD in previous posting(s). Be prepared to explain where that $$ went to the trustee.

Good luck on Thursday!

Those paid for the attorney so I'm covered there.

[ksgirl38]

We were also asked how much cash we had on hand when we filed. I printed out our balance on the day we filed and gave it to my attorney...it was a good thing too because the trustee asked for it from everyone. For those people who didn't have it, the trusteee told them to get it to him right away, and although it shouldn't take long, it takes more time and just slows things down. He wants all of your info right then at his disposal. IF he wants to question anything about your spending or if he has any doubts, he may ask you to provide where XX.XX amount of money went. I didnt have any large spending prior to filing so I wasn't concerned. I wouldn't worry if you only had regular spending that you have each month.....if you've spend hundreds of dollars or cashed in CD's or closed accounts with large balances then I would be concerned.

Our 341 was also 6 weeks out from the time I filed. And then we had 60 days for creditors to object, and then we were discharged about a 9 days later. 2 weeks after that case was closed!

I have a toyota and I always paid that account online, and once I filed I couldn't. THey won't let you log in or anything. You'll have to mail in your payment. And they will send you (assuming you have a toyota) a single piece of paper early on (mine came about a week after I filed) that shows where to mail your future payments to. It's the department that handles the bankruptcy. I made sure I mailed in my payments about 3 weeks early because of the snail mail system and wanting to make sure nothing was late since I wanted to keep my car.

Also ...not sure if you're aware but once you file and the automatic stay goes into effect, you can't even call anyone that you owe money to. (i.e. student loans, car lender, any other creditors)....unless your attorney calls for you or with you. I did NOT realize this when filing. I tried calling my student loans more than once since I couldn't include them in BK and they would not talk to me. My attorney said If needed to reach anyone he would call them or conference me in on the call.

Hope this helps. GOOD LUCK!!!

I'm slightly confused, so the trustee asks about the balance of your bank accounts on the day you filed, or the day of the 341 meeting?

Yes, this helps. Thanks.

So I'll have to mail my Toyota payment to a different address? That's one of the payments I'm not going to be able to pay until after Friday's paycheck and I'm filing Thursday. My payment is due on the 14th of the month. If I mail it Friday do you think it would be okay since they probably would get my check before they get notification of the BK? I'm all current with them and would like it to stay that way, but I don't want to screw anything up by a payment getting lost.

[hmsmith]

I'm sorry for the confusion---on the day of the 341 meeting the trustee wanted to know what my account balance was on the day we filed. He also asked for bank statements for the month prior to filing. Hope this helps!

I think if you're mailing the car pymt on Friday and it's not due til Aug 14th that you'll be fine. I would always try to mail it a couple weeks in advance....and yes, the mailing address was a different one. Look for something in the mail the week after you file. (guess you might need to wait before mailing it) Now that my BK is closed I am able to continue paying it online with my old username an password....

[ksgirl38]

Thanks hmsmith. I signed the paperwork this afternoon and my attorney is officially filing tomorrow. I guess the trustees in this area usually ask for the entire months bank statements so I'll have to send Julys to my attorney when I get it. I guess the trustees send out a survey with the info they want. I think I gave my attorney pretty much everything so hopefully there won't be much more asked for. I get paid on Friday so I'll try to drop the check for the car payment in the mail then and hope they process it before they find out about the BK.

[hmsmith]

GOOD LUCK!! I hope it all works out for you and that it goes by QUICK!

[LadyInTheRed]

2. ...If you plan to win the lottery, do so after the 341.

Actually, as long as you buy the ticket after your filing date, winning the lottery before the 341 should not be an issue.

[basketsbears]

We filed the end of June, and like others we cannot get onto our Ally car loans online - but we can still get into our bank accounts online. We did not owe either credit union $ when we filed, so we are still paying bills like we had been through bill pay. Just a thought as the payments get there in a couple of days.

Good luck! Cannot wait to get this over with.

Lynn

[basketsbears]

Actually, as long as you buy the ticket after your filing date, winning the lottery before the 341 should not be an issue.

I had thought everything was the day of filing. But, in another thread I posted that I had been offered another job where my income would have almost doubled. My attorney said we would be in a 13, as we are borderline Ch 7 now. When I asked what the payments to a 13 would be she said whatever my "raise" would be which would have been a couple of thousand more monthly. I would not have started the position until mid August a few days after 341 is scheduled. My attorney told me I could not delay the start of the position because of 341 and I said I wasn't doing that, but that is when the position would start. I declined the position.

So, I guess I am saying if you win a lottery,after filing, even before you close, which would be A LOT more than my "raise" you could still end up in a Ch 13.

[ksgirl38]

Actually, as long as you buy the ticket after your filing date, winning the lottery before the 341 should not be an issue.

I asked my attorney about this as a joke and she said anything won within 6 months of filing has to be reported.

[LadyInTheRed]

I asked my attorney about this as a joke and she said anything won within 6 months of filing has to be reported.

Attorneys have been known to be wrong. If you are lucky enough to win the lottery in the next six months, I suggest you ask your attorney for authority supporting her position and/or get a second opinion. What makes up the bankruptcy estate is defined by 11 USC § 541: http://www.law.cornell.edu/uscode/text/11/541. The only things that become part of the BK estate because you became entitled to them within 6 months after filing are an inheritance, life insurance proceeds, death benefits, or marital property and divorce settlements. That doesn't mean the trustee might try to get his/her hands on lottery winnings for a ticket purchased after filing (note my use of the word "should"), but if they do the debtor's attorney should fight it.

This applies to a Chap 7. If a Chap 13 debtor wins the lottery during the plan, that is income that the trustee can take if it results in increased DMI.

I had thought everything was the day of filing. But, in another thread I posted that I had been offered another job where my income would have almost doubled. My attorney said we would be in a 13, as we are borderline Ch 7 now. When I asked what the payments to a 13 would be she said whatever my "raise" would be which would have been a couple of thousand more monthly. I would not have started the position until mid August a few days after 341 is scheduled. My attorney told me I could not delay the start of the position because of 341 and I said I wasn't doing that, but that is when the position would start. I declined the position.

So, I guess I am saying if you win a lottery,after filing, even before you close, which would be A LOT more than my "raise" you could still end up in a Ch 13.

You were offerred the job after you filed BK, right? If so, I disagree with your attorney. Members have posted on this board about getting higher paying jobs between their filing date and their 341. When they told the trustee about it at the 341 when asked if anything has changed, the trustee congratulated them and wished them luck. I have read of this more than once.

I'm not an attorney and am giving this information based on reading the law, this board and other sources. I encourage you to do your own research and carefully question your attorney about this advice.

Your bankruptcy petition is a snap shot of your situation on the date you filed. The law is designed to prevent somebody who knows they are going to get a windfall or huge increase in income from abusing the system by filing Chap 7 before receiving the windfall and raise so that they don't have to pay their creditors.

ETA: I just PM'd one of our attorney members and asked him to correct me if I am off base in my statements. I don't like to argue with the advice people receive from their own attorneys, but I also don't like to see people rely on incorrect advice.