couple questions about bk

[tacomeat]

1. im probably going to file bk in the next 90 days. several months ago i took all of my money out of my bank accounts for fear that some or all of it would be accessed by a creditor or by the bank since i had a credit card with them. of course i now realize that they cant do that. never the less, ive just kept my cash at home. whatever infrequent deposits ive made over the last 6 months i just withdrew and then the few times ive needed to make some kind of purchase or payment with a debit card/check, i deposit the money (few hundred at most) to cover it. i still have a few thousand of cash on hand right now (mostly from an IRA distribution i took earlier this year).

my question here is - does that look bad? would it make it more likely that an AP would happen? will anyone scrutinize this type of activity? do i turn in my bank statements when i file bk or do i simply state how much cash on hand i have at the time? will it raise suspicion about how much cash i really have if im just keeping it at home since there wont be a record of it all through bank statements?


2. if i file for bankruptcy on july 1st for example, what happens if i come into some money on july 2nd or any time after, but before the discharge? do i disclose it? can creditors get their hands on it? i have a specific reason for asking, but would rather not say (no, its not inheritance, nor settlement). its not money i specifically KNOW is coming, but it could.

one of the attorneys i spoke with on a free consult seemed to be saying that it doesnt matter what happens after the date of filing as long as ive disclosed everything as accurate at the time of the filing - and the example he used (which i will pose in a different thread) was that right after i file, i could then withdraw enough money out of my ira to pay off my car so that i could keep it and none of that would matter since the bk was about my financial picture as of july1st ... does that sound right?

[nomoneynomore]

"Do i turn in my bank statements when i file bk or do i simply state how much cash on hand i have at the time?"

You are usually required to turn at least 6 months worth of bank statements in to your attorney. We had to submit 6 months worth, however, a friend of ours going through the same attorney had to submit a year's worth of statements.
"Does that look bad?"

If it is on the statements you are required to submit, it will look bad. The trustee will most likely demand to know exactly what the money was spent on and will require proof. We filed right after we got a large stimlus check a couple years back. We had already spent it for legit expenses before filing and we had to account for ever penny. That was the one thing the trustee questioned and re-questioned us about.

"If i file for bankruptcy on july 1st for example, what happens if I come into some money on july 2nd or any time after, but before the discharge?"

In our state, if you come into any money before discharge it is property of the bankruptcy and they will most likely take it if it is a sizable amount. I think it usually depends on how strict the trustee is.

"Do I disclose it?" YES, you must always disclose anything like that. If you don't, you can get in a lot of trouble.

"Can creditors get their hands on it?" YES, the trustee can distribute it among the creditors.

[keepmine]

For means testing purposes you income picture is set at filing date.
Technically, assets you obtain after filing and prior to discharge are property of the bk estate.

http://doney.net/bkcode/11usc0541.htm

6) Proceeds, product, offspring, rents, or profits of or from property of the estate, except such as are earnings from services performed by an individual debtor after the commencement of the case.

(7) Any interest in property that the estate acquires after the commencement of the case.

Prehaps if you tell us exactly what you're expecting on 7/2 maybe we can help.

[Charlie777]

The thing to remember is that once you pass hte means test and file Ch 7, now the question of your assets and exemptions (there are Federal and State exemptions) comes in to play. So even if you receive a windfall during the bankruptcy it may be that you have unused exemptions that would make it "exempt". So you really need to go over specifics with your attorney.

[nomoneynomore]

The thing to remember is that once you pass hte means test and file Ch 7, now the question of your assets and exemptions (there are Federal and State exemptions) comes in to play. So even if you receive a windfall during the bankruptcy it may be that you have unused exemptions that would make it "exempt". So you really need to go over specifics with your attorney.

This is exactly right. I had meant to mention exemptions and suggest you speak with an attorney about it and completely forgot. That is what I get for replying when I am so tired

If you haven't spoken with an attorney, go get a couple of free consultations, that will help answer a lot of questions.

[tacomeat]

For means testing purposes you income picture is set at filing date.
Technically, assets you obtain after filing and prior to discharge are property of the bk estate.

http://doney.net/bkcode/11usc0541.htm

6) Proceeds, product, offspring, rents, or profits of or from property of the estate, except such as are earnings from services performed by an individual debtor after the commencement of the case.

(7) Any interest in property that the estate acquires after the commencement of the case.

Prehaps if you tell us exactly what you're expecting on 7/2 maybe we can help.

ok well that clears it up. i mean, thats kind of what i figured, but one of the attorney consults (probably not a good one) seemed to imply i could make some financial moves after i file because the bankruptcy and the specified figures therein are sort of locked in on the day of filing.

anyway, im not expecting anything. i was just thinking "what if" - say if i got 5 out of 6 lottery numbers and won a "small fortune" where it could hurt me to have some or all of it taken by creditors. if i actually won the entire lottery, then it wouldnt matter and this debt would be mere chump change, lol