Bank statements

[adviceplease]

One of the lawyers I talked to wants 6 months of bank statements. What are they going to use them for or what are they looking for? (Just curious) Can you just print it off online or do you need on from the bank itself?

[Flamingo]

The attorney and trustee will be looking for what went out and what came in to your bank accounts for that period of time. You can either provide the statements you receive in the mail each month from your bank or print them from offline. You may be asked to explain certain amounts going out and certain deposits going in over specific amounts.

[lookingforward]

My atty supplied them to the trustee about a week before my 341. At my 341, he did question several people about large amounts in or out, but there was no problem if there was an explanation. I had the statements the bank mailed and he also wanted a printout of the day of filing.

[adviceplease]

Thanks. My mom is giving us $800 to pay some of our mortgage to get it caught up to current, and my MIL is giving us the retainer money is this going to be a problem? The lawyer said that I can not pay them back until the BK is done but are they going to think the extra money is income? Honestly my MIL has helped us a lot over the past year because my child needs special food etc which is expensive.

Also do they ask you to provide old receipts for things or have you explain small past purchases? My child is in diapers due to a disability and I spend a lot of money at Toys R US (babies r us is joined) for diapers/pull ups and toddler foods. I did not keep the receipts to show them that I am not blowing a lot of money on toys and other unneeded things.

[lookingforward]

I don't know if my trustee had already reviewed things like that, but he did not question one person out of all of the cases we heard before ours about daily expenses, their schedules or anything at all other than large (1000 and over) withdrawals from their accounts in the month before filing.

Also, my opinion is that if your mom gave you the money for your mortgage, and you have the receipt for that payment, that will be fine. It's not like she gave you the money to spend at the casino, you have a receipt for what you spent it on. I had withdrawn several thousand dollars the days before filing, but I used it to pay some bills. I brought the receipts with me, and when the trustee questioned me about it, I showed him the receipts, one of which was my mortgage payment, and he just looked at everything and said, OK, you withdrew the money and spent it on these bills, that's fine.

I think that with a situation like you have with your child, an expense like diapers wouldn't be questioned anyway.

I was worried too that I would be picked apart with each expense, I have several little dogs and they can be expensive, and I was worried that that would be looked at, but like I said, there was absolutely no microscoping of anyone's schedules or spending at my 341.

[backtoschool]

One of the lawyers I talked to wants 6 months of bank statements. What are they going to use them for or what are they looking for? (Just curious) Can you just print it off online or do you need on from the bank itself?

My lawyer asked for a year of bank statements, and the trustee looked at 8 months of them at my 341. (he mostly looked at 6 months of them and just looked at one item that was from 8 months ago)

Online statements are fine.

[justplaintired]

We provided 6 months worth. I don't believe they go over them with a fine tooth comb, but look for large deposits or withdraws and may question them. We had no issues with ours, but all of ours were about what a person would expect for the income we claimed. I wouldn't be too worried unless you have large unexplained deposits or withdraws.

[backtoschool]

In my 341 yesterday, I had to explain several deposits over $1,000 (money my boyfriend gave me to help with expenses). The trustee asked who the deposits were from, I told him my boyfriend, then he asked me if the deposits were loans (so that he could claw them back as preferential payments). I said they were gifts. He then asked me if my boyfriend lived with me. (so that he could add my boyfriend's income to my schedule), but my boyfriend does not live with me so I said no. He asked me what each deposit was used for, and I went over the expenses that the money covered.

He then moved on to asking me about other things, and no red flags were raised once I gave the explanations.

I would be prepared to explain any deposits over $1,000.

[Ann]

I was wondering if it is possible for me to use money from my husbands IRA to use towards my lawyer expenses? I know everyone will say bad idea but with my child's college expenses now I may need to do just that! Will the trustee not allow this?

[adviceplease]

I wish I had deposits over $1000...lol. The only one is a school refund from FA.

In my 341 yesterday, I had to explain several deposits over $1,000 (money my boyfriend gave me to help with expenses). The trustee asked who the deposits were from, I told him my boyfriend, then he asked me if the deposits were loans (so that he could claw them back as preferential payments). I said they were gifts. He then asked me if my boyfriend lived with me. (so that he could add my boyfriend's income to my schedule), but my boyfriend does not live with me so I said no. He asked me what each deposit was used for, and I went over the expenses that the money covered.

He then moved on to asking me about other things, and no red flags were raised once I gave the explanations.

I would be prepared to explain any deposits over $1,000.