When do you need to empty checking account

[ohantonio]

I need some clarity of when you actually need to have your checking account down to $0

thanks

[drowning123]

You should have been doing this all along. There's no structure to emptying your checking account. If you're broke, you're broke. The trustee will find it highly suspicious if let's say you had $1,000 the day before filing, but on the day of filing you only have $1.

[forgotten]

I need some clarity of when you actually need to have your checking account down to $0

thanks

Why would you need your checking account down to $0? I had $9000 in mine when I filed, all excempted.

[ohantonio]

I've read before that when you meet with the trustee, whatever is in your account that day, he will ask you to right a check to him for that amount. In my case, there isn't any money to hide, the account balance is always pretty low. I just didn't want to get paid on the same day that I would be meeting with the trustee. Still trying to pay the mortgage, car payment, utilities, etc.

[drowning123]

Nah, you'll be fine. On my day of filing, I got paid, but I withdrew all the money to pay my attorney.

[ozarkmiss]

I've read before that when you meet with the trustee, whatever is in your account that day, he will ask you to right a check to him for that amount. .

I find this hard to believe. Paying necessary bills listed on the J Schedule would trump the trustee collections I would think?

Anywho, we are using federal exemptions and reported in the petition several hundred dollars in checking. Have not had 341 yet.

[helpmeout]

Well, I wouldn't make a big withdrawel just before filing. What you need to do is take money out and pay bills with money orders. And save the money orders. Because the Trustee doesn't care if there is outstanding checks, the balance the day of the filing is all the Trustee is in. And if it can't be exempted, you will have to pay it to the Trustee. Mine wasn't 0,but it also wasn't as much as the attorney put on my bk forms (for obvious reasons, it had to be estimated). I also wouldn't time your filing the day you get paid. Do it either the day before (after you have already paid bills with your prior check) or a week after, when you have paid bills with the check.

[helpmeout]

I find this hard to believe. Paying necessary bills listed on the J Schedule would trump the trustee collections I would think?

Anywho, we are using federal exemptions and reported in the petition several hundred dollars in checking. Have not had 341 yet.

No, it would not. Any balance in a bank account is part of the BK estate. Even if there are outstanding checks against it. Know your exemptions and keep it below that. Pay with money orders if you need to. But don't expect that just because an expense is on the Schedule J that you can keep the money in the account to pay for it if you don't have enough exemptions to cover it. It doesn't work that way.

[debee]

I agree with helpmeout - it's not the amount of money in your account as of the 341 that matters. It's your balance at time of filing. What you earn after filing is not part of the bankruptcy estate and the trustee won't go after it.

[free2breathe]

I find this hard to believe. Paying necessary bills listed on the J Schedule would trump the trustee collections I would think?

Anywho, we are using federal exemptions and reported in the petition several hundred dollars in checking. Have not had 341 yet.

I wish it worked this way, but unfortunately, as helpmeout and debee have stated, it's simply not so. Our DMI is laughable, but we had money in our account on the day of filing that the trustee has asked for. However, it depends on the trustee. Our trustee didn't ask for our money on the day of the 341, he is actually taking it out of our tax refund when we get it. If there isn't enough in the tax refund to cover it, he will accept payments.

[helpme2010]

check your exemptions and see what you are allowed to have. Also the trustee will go back and look at your history, so if you are doing something suspicious or fraud, you take a big risk of getting in trouble. It's just like doing tax write offs for donations and stuff. I also error on the side of caution, meaning I would rather play by the rules and be safe, then take a risk and do anything that could jeopordize my case. I know you hear about people that do some crazy things before bk like go on massive buying sprees, and perhaps they get away with it, but I would never take the risk. Call me chicken, but at least I know I will have a successful discharge.

[df04527]

Can't help but wonder what will happen if over a period of time you vacated the account because you were afraid of a pending judgement? Will it be okay to tell them your on cash now? Can't open new accnt because of unpaid bank fees.