When bank account is included in bankruptcy, what do they look at?

[annat]

I was wondering when someone has their bank accounts included in the bankruptcy, how far back do the courts look at those accounts, or what exactly do they look for? Do they look at the transactions from the time the account opened to when it was closed, or do they look at just the past couple of months before the account closed? Or do they just look at the ending balance?

Any information would be much appreciated!

Thanks

[magyar123]

Are you talking about credit cards from a particular bank, or your checking/savings accounts from that particular bank?
Why would you include assetts/checking, savings as debts when you file???

[HHM]

I agree, I don't quite understand what you are asking?

[Minnymouth]

When you file bankruptcy the Trustee has the power to look at ANYTHING of yours financial as far back as 5 years if he so desires.....

This includes all mortgages, deeds, contracts, purchases, bank affairs, closed accounts, etc.....

Its his choice what he wants to look into...............

[jp2861]

They can look back as far as they feel necessary. They're looking for large sums coming in and going out that you may be trying to hide from them.

They will also be looking at the balances on the date you filed to see if there's enough for them to take and disburse to creditors.

If the account shows amounts that don't jive with your income or you have money going out regularly that doesn't reflect your expenses you may get questioned about it. If you have funds that aren't being accounted for they may be looking to see if you're trying to hide funds to avoid a 13.

If it's a closed account they may want to see a few months prior to see if there was a chunk of money you didn't disclose and stashing under your mattress. If so, they may want that money.

If you're account shows a pretty normal trend from month to month, that reflects your income/expenses you won't have a problem.

[annat]

The reason I was asking is because earlier this year a friend of mine from overseas sent me a couple of large checks of which I was able to keep a small amount of, however, he it was mainly used to purchase gifts for his children (who live in this country), and also I sent some to other members of his family via western union (as it was easier for me to do that, then for him to pay so much extra for each thing). I was just wondering if when they look at my account and they see the large amounts in my account, will it matter? The reason I'm including my bank account in the bankruptcy is because I had so many payday loans, and my attorney told me to have the loan places just cash the checks which is going to cause my account to bounce them all and then close, and he said we then would include the account in the bankruptcy....if that makes any sense?

[FreshLikeADaisy]

Annat, I'm not an attorney, but it seems to me that you should be fine on those checks. On Form 7, the Stmt of Financial Affairs, your atty can list those transfers and explain them; you don't have to wait for the trustee to spot them and ask what they are about. Also, the whole lookback thing really depends on your trustee. Some go back way far, and some go back 6 months. You just can't know until you file and your trustee asks for additional documents. My cat is sitting on my hand so I have to stop now. Good luck!

[annat]

FreshLikeADaisy, thanks for your reply. When I talk to my attorney next I will bring it up with him. What additional documents would the trustee ask for? As far as the checks go from my friend, I have no documents supporting that they're from him. I looked at my online statements and it shows when I deposited them, however all it says is "personal check", it doesn't show the actual check or anything like that.

[annat]

Would filing a 13 be better, do you think? As far as being willing to pay back my debt?