$ in bank at time of filing CH 7

[ballysdad]

I have read that I can use what ever is left over from "homestead rebate" exemption. I do not own a house so I am assuming I can have up to $11300 in the bank at the time of filing. That seems high and am wondering if the trustee will take some of it? There is no wildcard exemption on NJ.

Anyone have any experience on this?

Thank you

[Anonymous]

Not sure but that's quite a nice chunk of change if you're going to be filing Ch7. The attorney/trustee will ask for copies of bank statements when you file, as was in my case but I didn't have any money in my account when I filed so I didn't have anything to worry about. They might want some of that money. Hopefully someone here with a similar scenario can help you out.

[ballysdad]

To be clear if I stopped paying my bills and filed in 90 days I could realistically have about $6k saved up. I had read that there is allowances so I was wondering if anyone had what they deemed an excessive amount at time of filing.

thank you for your reply

[twono]

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@ballysdad wrote:

To be clear if I stopped paying my bills and filed in 90 days I could realistically have about $6k saved up. I had read that there is allowances so I was wondering if anyone had what they deemed an excessive amount at time of filing.

thank you for your reply

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Hmmm, IDK...I was told by THE BK attorney in my professional sports team city that also cost me $4000 for my Ch. 7 and who is also a trustee....to DEPLETE all bank accts at time of filing and to be able to show where any large payments went or purchases made.  I had $56 in my direct deposit checking acct and another $30 in credit union savings accts.  I was told to buy a roof, fill my fuel oil tank, new tires for cars, any major repairs that couuld be done on vehicles, etc....

You want to go into BK BROKE!!!

The professionals will chime in, but that's the advice i was given.  Not really advice, but was ORDERED by my attny.

[FireMedic1]

This is more for a lawyer to discuss with. I'll just throw it out there. No matter where the 11g's came from. Its sitting in a bank. I wont say illegal things. But if you go see a lawyer. You might have to go the 13 route since you have some $. Or maybe a 7 and the trustee takes it to pay the debtors. Its not like home equity. Little complicated. It does depend on each state also. I'll leave it at that. Make some lawyer free consult appts.

[FireMedic1]

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@ballysdad wrote:

To be clear if I stopped paying my bills and filed in 90 days I could realistically have about $6k saved up. I had read that there is allowances so I was wondering if anyone had what they deemed an excessive amount at time of filing.

thank you for your reply

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Not worth getting a bunch of 90 day lates on your reports before filing BK. They will hurt the entire 7 yrs after filing. Then you'd have $17,000 in the bank? Maybe take the money and pay whatever is owed and put BK on the back burner. You never mentioned how much debt your in.

[ballysdad]

I did find the answer 11 USC D5 it is about $7500 in total assets including cash. That excludes autos and homestead. The total debt is over 140k which includes $52k in old IRS debt that can be discharged and $64k in debts that carry interest rates from 21%-29.9% per month. The rest are medical debt.

[pip3man]

In NJ u have the option to choose between state or federal exemptions if I'm not mistaken. And since I have no home equity, I used the wildcard exemption towards the value of securities in my brokerage account. Thankfully I had no cash in savings or checking so I didn't have much to worry about.

[ballysdad]

I will continue to make minimum payments up to filing and spend an money left over on household and car needs as I get close. Whatever is left my lawyer says I can use what he referred to as "the catch all" for what's left over In my account. I have been paying 67 months straight more than minimum payments and I have watched my credit score go from a low of 581 to a high of 630 and right now it is 608. I can never get into a place where I can get favorable interest rates to consolidate. The thumb has been on me for years and now it's time for something different. Granted I got myself here but now it's time to use other tools to help.

[FireMedic1]

Ok. That makes more sense now. I filed mainly for back taxes after 16 yrs of chasing me. You dont want to know what penalties and interest was. Yeow! Then they found me. BK! It was all DC'ed. Then a year later. CRA's dont place leins on reports anymore. But it was gone after DC or should I say released. Yeah try to keep the lates as a min. The BK will kill your scores as it is. Keep track of by printing your final statements where you paid on time before the filing date. Too many come on here saying lates showed up after filing. But they were never late. Thats a mess. You'll have proof then. Good Luck. Keep us updated!