cash in the bank

[larryrose]

Help! I'm sure this has been hashed and rehashed but I'm still confused.
I own a single member LLC. On the balance sheet the cash in the bank is part of the value of the company but I don't understand how the trustee looks at this money. When I close the books at the end of the month I will have $3000.00 in the company bank account. I will pay 1500 in rent on the 1st and I can pay myself another 1000 on the 1st. This will lower my business account to 500. Will the trustee want the amount in the business account on the day that I file or will he consider the value of the business as of the closing of the previous month? The attorney told me cash in the company account wll be considered part of the value of the business but I can exempt up to 1000 in my personal account.
Is the 6 month income look back from the exact day I file? example: I file on the 10th of August will my income be from February 10th to aug 9th or feb 1st to july 31st. (the 31st being the day I would normally close the books)
I am filing personal ch 13.
Thanks for any advice

[destitute]

Hi Larry. I just filed for Chap 7 and I too have a single member LLC. I was told by my attorney that it is cash in the bank the day of filing so what I did was pay all of the bills I could to get the amount down. The day before filing I had enough to pay my mortgage so I got a cashiers check from my bank (this way the withdrawal was immediate) and paid my mortgage with it. I kept a copy of the check to prove where the $$ went. unfortunately I did too good of a job and ended up overdrawing the account by $20 but at least there wasn't any money in there on filing day!

The 6 month look back is calendar months. If you file anytime in august it will be for February through July.

[larryrose]

destitute
Thanks for responding. Did you have a seperate business checking account?

[destitute]

Yes I had a personal savings and checking and also a business checking. I pulled the $$ from the business checking account to pay the mortgage. My personal accounts had less than $100 each on the day of filing. Mine is a service business with no hard assets so we didn't have to set a value on it. I covered a computer, desk, fax machine, etc with personal exemptions to protect them.

I made sure I had a solid paper trail because if the trustee looks at my bank statement he will see a $2000 withdrawal the day before filing. My attorney told me that as long as I could show the money purchased a cashiers check or money order to pay the mortgage I would be fine. I would assume you could do the same with your rent and any other bill you can fit in.

[larryrose]

Thanks,
I will be doing ch 13 because the business has inventory & assets plus I have equity in my house that I'm trying to protect.
I'll plan to pay everything that I can the 1st week in Aug. then file after that. I should receive a copy of my house appraisal tomorrow then I will make another appointment with the att to get things started.
Thanks for your help.