What to do with savings before filing?

[underwater2]

Hi We have $5K in the bank and are planning on filing Ch 13 in 30 days or so
$4K was being saved to pay our atty fees that are to be paid before filing
$1K was to be used for misc items that we need.

Will this $4k be counted as assets if we write a check to the attorney the week before filing?

Should we have less going into the filing? Our prop taxes are due 11/1. Should we pay the taxes instead?

Our attorney said his fee is to be paid upfront? Any thoughts? Thanks.

[despritfreya]

Paying your attorney before filing is clearly acceptable. Payment should be in the form of cash or a cashier's check. If you pay by personal check the attorney will most likely have to hold off filing the bk until the check clears. If he doesn't then you will have $$ sitting in the bank on the day of filing. That $$, unless you can find an exemption to protect it, will have to be accounted for to your unsecured creditors.

If you cannot exempt the balance of the $$ sitting in the bank (or your dresser) then, assuming the property taxes are associated with your residence and assuming you are keeping it, yes, paying the property taxes is also acceptable.

[ramirezhenry]

I think you are just doing the right thing not to declare your savings at all because even after you declare bankruptcy you would still need to spend for the process.