Back Account Information

[PhillyGuy]

As part of my BK, like everyone, I submitted bank statements, etc... I was wondering when I could close all my existing bank accounts (checking and saving) and open new ones. I am worried about one of the creditors some how obtaining my account info and possibly doing something to my account. I was discharged as of Feb 2013, but the case is not closed, and I do not expect it to close for a few months.

[LadyInTheRed]

You can close your accounts any time you want as long as you aren't trying to hide cash from the trustee.

It is very unlikely that a creditor will try to do anything to your accounts to pay off discharged debt. If they do, you would have a claim against them for violation of the bankruptcy court's permanent injunction against collection. With the exception of some bottom feeder debt collectors, most creditors know better.

[PhillyGuy]

Thanks, nothing to hide. I will open new accounts next week. The creditor was an ex-business partner that filed a suit against me. I can see him withdrawing money from the account if he had the account number.

[btbeme]

A good practice would be to close the account, obtain the Cashier's Check as the funds from that account, and deposit said Cashier's Check into a new account as the opening funds. That way, anyone can see that the exact amount of (I presume to be exempted) cash from one place ends up at another ... sort of a chain-of-custody thing.

You don't want a few hundred to "go missing" during the transfer. Not that it would necessarily cause a problem, but it is usually a LOT easier to avoid a problem than explain a problem.

[PhillyGuy]

Since i am already discharged, just waiting for asset distrubution and final clousure of the case, would there be any reason i would have to provide new bank statements?

[LadyInTheRed]

Since i am already discharged, just waiting for asset distrubution and final clousure of the case, would there be any reason i would have to provide new bank statements?

It's possible if the trustee goes on a fishing expedition for unreported assets. You would probably already know if that was likely to happen. But, account statements are provided only to your attorney and the trustee. They are not filed with the court and do not become part of any public record. Even if you do have to submit statements, your ex business partner will not have any access to them. In fact, they probably won't even know the trustee asked for them.

[daveinIL]

A good practice would be to close the account, obtain the Cashier's Check as the funds from that account, and deposit said Cashier's Check into a new account as the opening funds. That way, anyone can see that the exact amount of (I presume to be exempted) cash from one place ends up at another ... sort of a chain-of-custody thing.

I agree keeping good paperwork is important here, but I learned the hard way that you never want to transfer 100% of an account at once. Banks will almost always place a hold on the funds for several days after the initial deposit. In my case, I transferred my entire account balance at once and then discovered that there was a 10 BUSINESS DAY hold on the funds. That's right....I had no access to my own cash for two weeks!

I suggest making two transfers of 50% each and not making the second transfer until the funds from the first transfer are available to you.

[PhillyGuy]

It's possible if the trustee goes on a fishing expedition for unreported assets. You would probably already know if that was likely to happen. But, account statements are provided only to your attorney and the trustee. They are not filed with the court and do not become part of any public record. Even if you do have to submit statements, your ex business partner will not have any access to them. In fact, they probably won't even know the trustee asked for them.

Thank you, i feel a lot better knowing they do not have copies of all my paperwork. Maybe i will then wait to change all the accounts until after i am closed out and finished.

Thanks again.

[PhillyGuy]

I agree keeping good paperwork is important here, but I learned the hard way that you never want to transfer 100% of an account at once. Banks will almost always place a hold on the funds for several days after the initial deposit. In my case, I transferred my entire account balance at once and then discovered that there was a 10 BUSINESS DAY hold on the funds. That's right....I had no access to my own cash for two weeks!

I suggest making two transfers of 50% each and not making the second transfer until the funds from the first transfer are available to you.

Thanks for the info.