Filing bankruptcy with money in the bank

[walkawaykid]

Hello all, I have a question about filing when you have money in the bank. I have only worked about six months in the last 2 and half years due to being injured at work that required surgery. As a result, I lost my job after being cleared. That was last October and have been unable to find work.

I am not late on anything yet, but I cannot sustain myself with unemployment and things are starting to get bad....not rock bottom yet, but it's coming.

Last night I totaled up my debt and it was almost 120K.I want to get rid of all debt including letting me house go as well. I lost over 50K last year and I was not able to refinance.

Right now, I have several thousand in the bank, but will need the money for attorney costs, my car and expenses for moving out of state that is about 500 miles away. I have family that is going to let me stay with them and I may be able to get a job with a relative making decent money. The money is at my bank where I am in good standing and have no credit issues with them. I do not want to pull it out and make it look like I was doing something shady.

Will that money in the bank interfere with me filing bankruptcy? Not like I am going to use it to have a party, but I will need it to sustain myself until I can get moved and find employment.

Thanks for the help guys. Last few years with my injury, being out of work and losing equity in home have stressed me long enough.... I am getting out very soon!

[keepmine]

Legal fees and living/moving expenses are an acceptable use of savings.
Prior to filing, find out how much cash on hand can be exempted in your state.

[ssanchez]

You should be fine with the money in the bank. When I went to the 341 meeting, I have heard some people with $10K or $20K in the bank and the trustee didn't even wince a bit.

But if you want to be sure, just take the money out, and leave only $500 in there and put the rest back whenever you need to. That is what I need personally.

[ForumReader]

You should be fine with the money in the bank. When I went to the 341 meeting, I have heard some people with $10K or $20K in the bank and the trustee didn't even wince a bit.

But if you want to be sure, just take the money out, and leave only $500 in there and put the rest back whenever you need to. That is what I need personally.

Yes, but not to stash away money and hide it from the trustee at the 341 meeting, spend it down with necessities (and lawyer fees as well) or have the money exempted with the exemption amount allowed by your state.

[ssanchez]

Yes, but not to stash away money and hide it from the trustee at the 341 meeting, spend it down with necessities (and lawyer fees as well) or have the money exempted with the exemption amount allowed by your state.

That is true, I didn't have to worry much since I only had $3,000 in my account prior to my filing. But if you do have the $10K, $20K and withdraw it all of a sudden from the bank and then file for bankruptcy, that will invite a little bit of suspicion to the trustee. The couple that I heard in the 341 meeting said they had the $10k in the bank from their "grandmother" because they are holding the money for her. It sounds quite suspicious, so the trustee grilled them for more than 10 minutes.

Other than that, if you really have that much money in the bank, withdraw it, wait 90 days before filing.

[JackBondLove]

You should be fine with the money in the bank. When I went to the 341 meeting, I have heard some people with $10K or $20K in the bank and the trustee didn't even wince a bit.

I had about $50 in the bank, and my trustee demanded that I pay it to him! (My state has no wildcard exemption.)

[StartingOver08]

ssanchez, it sounds like you are in California. We here in Fl do not have those very generous exemptions you have in your state. In fact the cash exemption amount is state specific. Don't count on filing with cash if your state has no exemptions for it or you will end up like JackBondLove and have to give it to the Trustee in exchange for your discharge.

Look up all of your exemptions and plan accordingly. One such site is here www.legalconsumer.com

If you can't keep the cash, spend it down prior to filing on allowed items, like attorney fees and living expenses.