Question on 341 meeting

[rockobuster]

What is the name of your state?OR

I had heard that when you go to your 341 meeting that you need to make sure that you had as little money as possible in your checking account on the day that you file for BK.

The reason I heard is that the Trustee can take 25% of what you have in your checking account on the day of filing. How would he take that amount when my meeting is scheduled for a month after the filing and that money is no longer in checking?

I'm asking because my husband and I get paid on the 1st of every month and our filing was on the fourth of the month, and it shows we had quite a bit a money still in the account. The checks were mailed out but not cleared by the fourth of the month.

If you have had any experience in this already, or can share what you know, I would appreciate it.

 

[chris7]

Ouch! My understanding is that the trustee will take (unless it's some how claimed as exempt) whatever your bank statement states was in your account on the date of filing. That's why its always recommended that those final weeks you should purchase money orders to pay for things, that way the money is out of your account right away. It does not matter that checks had been written but had not cleared, what the bank statement says was IN the account is what the trustee is going to want, and I don't think he's going to want 25%, he's going to want it all. He'll just say "hand it over", and if you can't, it's probably going to be bad news. At least that's what happened to us. We had it down to 56$ and he wrote us a letter saying send me the 56$ because that's what showed on our statement. Someone else speak up if you think I got this wrong, but that's my understanding of it.

 

[Ladynred]

Not necessarily true. A lot depends on the Trustees in your area. Your bankruptcy papers are a snapshot of your financial situation on the DAY YOU FILED. It would be wholly unreasonable for any Trustee to assume that you might not have checks out on any balance in your checking account. Trustee's DO accept copies of check book registers as proof that the money in your account may already be earmarked for your regular expenses. It IS generally advisable to have your case filed on a day when your bank balance is at its lowest point and THAT amount may be exemptable.

 

[rockobuster]

My lawyer had told us to have as little money as possible in our account on the 4th of the month, but since the 1st was on a Friday, some of the checks did not clear until the 7th of the month.

Since my banking statement is on-line, would the trustee accept a print out of that, or do they prefer a copy of your check register?

Also, if the trustee wants the whole amount as of the filing date, or even 25%, how do they expect you to pay them? Do they give you a time limit or do you have to give them a check at the 341 meeting?

 

[Ladynred]

The on-line statement would be acceptable since you can pull in on the day your case was filed. You can also show then that you had outstanding checks against that balance on that day. Ask your lawyer about your check register as evidence. If the Trustee wants anything from you, including money, you WILL be notified.