Bankruptcy & bank account when only using Money Orders (not checks)

[Fred2020]

I've been reading that the attorney & trustee will want to see your bank statement to review it.

Since I don't want my creditors to have my new account information I have been paying with money orders & mailing the payments.

How is the trustee going to view that there are "cash" withdrawals (using check/atm) and then no paper trail of checks, just the money orders?

What will I need to provide to prove that it was not "cash" for me but cash used to pay bills?

How many months will I need to have the proof for?

[HHM]

If that is the "only" issue in your case, not likely a problem; especially if the amounts are within the realm of reasonableness for living expense.

At this point, start saving your receipts and copies of any bills. That way you have some type of paper trail.

However, if you have other issues (problems) in your case, then this "cash" only system will be another red flag.

You will still supply the bank statements. The burden is ultimately on the trustee to show that something bad is going on.

[btbeme]

A good practice would be to get the individual money orders for the exact amount of the bill to be paid, keep a copy, and keep a copy of the bill that was paid. Should a Trustee have any suspicions, it is easy to show what happened. Trouble only starts when their suspicions are met with blank stares instead of photocopies.