Question about withdrawing tax return from bank...

[JEM]

after it's direct deposited.

Ideally, I'd really like to use the envelope system to spend our refund (BEFORE filing).

We are using it for auto maintenance, repairs, stocking up on groceries, some home maintenance stuff, new shoes for the kids and so on.....

BUT, will going to the bank and taking out $3000 be a flag on bank statements?

I just feel like this way will help us keep track better if its all divided into envelopes with the allotted amount we want to spend in each category.

I plan to keep receipts in the envelopes for the expenses.

[frogger]

I would probably use a debit card instead of taking the cash out of the bank. As to the envelope system, I understand where you're coming from, but why not just write it down and spend no more than allotted.

[jdcat]

I was wondering the same thing. I think though what we're going to do is this. Our return has been filed and now we're just waiting. I'm looking up the price of everything we need before hand so that I know exactly how much we'll need. Then when our return comes in we can run the to auto store, for example, and pay for our tires the day our return comes in. We can make a quick dash to our license bureau the next day and have our plates paid for.

I'm also setting appointments for two weeks from now for dental work so that will be paid for very soon after our return is in. Eye glasses are literally already ordered just waiting for payment before work can be begin on them. Appointments for the dogs shots are already set.

I just need to see that return hit our bank and with a push of a few buttons the kids' lunch accounts will be pre-paid for a few months.

Our return will literally be gone within 7 to 10 days. All of it will be paid for on debit.

[JEM]

I was just thinking that having the envelope system would be "easier" to track.

There will be some things that I will have to use cash for, and therefore make a withdrawal. The portion that we will be saving towards attorney fees. I plan to withdraw and put in our safe. i know it's early and I don't think any creditors would sue this fast or attach a bank account, but I simply don't want to risk it.

Also we are buying a pig and taking it to a butcher. We will have to pay for the pig in cash.

I guess everything else I will use the debit card or checks for.

[BKDefender]

[JEM]

Oh ya...its all stuff that's allowed. Stocking up on groceries..house maintenance..new tires...eye exams...glasses...:shoes for the kids...
and a chunk towards attorney fees.

[Mi Bankruptcy]

I would just use your debit card. This way it all reflects in your bank statements. Better to be over cautious and not take the chance to lose receipts ect. It's only for this year.

[JEM]

I have a question.....both attorney's I've talked with so far didn't seem all that concerned about the tax refund. Didn't mention anything about what to spend it on, or saving receipts.

I mean, obviously we're using it on allowed stuff and I've been saving receipts for the last few months ANYWAY....

The only two things that might be questioned, would be that our pup needs a new kennel ($87) and getting a new cell with Verizon's "new in two". Mine is free, and dh's will be $100. So out of $3000, I guess if they REALLY wanted to, they could question $187.

Like I mentioned before....we won't be filing till probably May/June at this point....so what are the odds that the trustee will go back and look at what we spent our tax return in Feb. on?

And I'm assuming that withdrawing the portion that we plan to put towards attorney's fees are ok to pull out of the bank and put in the safe until we retain and attorney since we will obviously be able to prove that that money went towards paying them. ?????

[Mi Bankruptcy]

I doubt the trustee will look. However, it does not hurt to have a list of things you spent it on (if) they ask. You can then back up your statement by saying we only used our debit card and you can verify this on our bank statements.

[frogger]

Shouldn't be any problems, but document, document, document. Everything should have a document to back it up.

[JEM]

Shouldn't be any problems, but document, document, document. Everything should have a document to back it up.

Ok....we will. I'll have a special envelope for tax return documentation of expenses...even though we've decided to use the debit card for things we can. I'll still save receipts. And of course when we retain an attorney, we'll have some sort of contract or something from them to show how much we put as a retainer. AND we'll have bank statements as well.