A hypothetical question about bk and cash only...

[DownNotOut]

I've read on the forum that lots of people after they file bk go to a cash only way of life. For example - they are done with bank accounts and they cash their paychecks, pay bills with cash or money orders or use prepaid, refillable Visa cards to buy things online. So that got me wondering.....

What if a person decided to live cash only before they filed bk? How would your bk go if you don't have any bank statements because you don't have bank accounts?

Let's make it even more interesting. Say said person was self-employed. How would you file bk if you had no paychecks OR bank statements? File tax returns only?

My mind often wonders about things outside of the box, so what do you think?

[Worried Mom]

There are probably more people living like that than you think. My son got in some financial difficulty and hasn't paid on anything since the summer of 2005. He's living in the same general area and worked in the same place since the fall of 2005. Somehow, none of the cards have caught up with him. They haven't given up, they call me and I never ever pick up.

He has no bank account, and has his pay deposited on a prepaid Visa. He rents a room so his name is not on any of the utilities. I think the SOL will be running out on this summer.

He's been talking about filing for BK for 4 years now and I guess he will do it when push comes to shove, but he's not there yet. He's not hiding but his creditors can't seen to find him.

He owns no property, has no assets except for personal belongings and hasn't applied for any credit since he defaulted on his cards. There really is nothing much to be gained in a lawsuit.

So ... if he ever decides to file, I will let you know how it goes - because he certainly fills your description.

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I realize that this sounds like a trully sorry situation but the upside is that he has learned to live within his means over the past 4 years. He says he will never own another credit card.

[LuciluS]

I've read on the forum that lots of people after they file bk go to a cash only way of life. For example - they are done with bank accounts and they cash their paychecks, pay bills with cash or money orders or use prepaid, refillable Visa cards to buy things online. So that got me wondering.....

What if a person decided to live cash only before they filed bk? How would your bk go if you don't have any bank statements because you don't have bank accounts?

Let's make it even more interesting. Say said person was self-employed. How would you file bk if you had no paychecks OR bank statements? File tax returns only?

My mind often wonders about things outside of the box, so what do you think?

If one lives this lifestyle and files Bankruptcy. IMHO, I believe the Trustee would request on the individual side of it, Dated Receipts for all expenses, a copy from his employer of the last 6 mths. wages (Our Attorney is requesting this, in lieu of paystubs).

Self-Employed person would be required to provide proof of Dated Billable Invoices, and if he claimed business expenses, again, copies of dated expense receipts. I'm sure there is more info Trustee would request. Being self-employed filers of Bakruptcy are scrutinzed harder than one who is not.

My husband is an OTR Truck Driver and we have always used the Per Diem set by the IRS each year for out of town layovers. Attorney said No! DH started in January keeping every receipt. And if he stops at a rest area, he takes a post-it note & writes the date, where the rest area was located, purchases bought out of vending machines and monies spent on each item.

Luci