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cashed check without knowing it would be a problem to trustee - any advice?

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whoisonfirst

Junior Member
What is the name of your state? OR

Hello everyone,

Thanks for all the wonderful advice. My husband and I filed Chapter 7 in Oregon on July 20th, 2004. We received our Notice of the Meeting of the Creditors today. One thing worries me after reading this letter.

There is one section that reads:

"You are especially reminded that you must account to the trustee for any sums owing you on the filing date (including unpaid wages; tax refunds; and any sums on hand at that time such as cash, bank balances, and uncashed checks). You may cash payroll checks, but do not cash any income tax refund checks or other checks received by you. Bring those checks to your meeting."

Our income tax refund was cashed long ago (in April). We used it in May to retain our attorney, and then we paid our filing fee this month (July). This does not worry my attorney, so it does not worry me, either.

What I am concerned about is the deposit on our previous apartment. It was $250, and we received it just two days after filing. We cashed the check, not knowing this would be a problem. Even with this check cashed, we were still below the $400 cash exemption allowed by the state of Oregon, but we are worried the trustee will be angry. We did not mean to do anything harmful to our case. We simply did not receive our notice until one week after we cashed that check. Of course, I will tell the trustee about this if asked, and I can show that we used it for groceries and other expenses. (And my mother visited from very far away this week - had not seen her in almost five years, so I did use a little for small expenses associated with her visit, but not much.)
 


Ladynred

Senior Member
Were you expecting this deposit refund when you filed ? $250 isn't much and since you can get it in under the exemption for cash it may not be a big deal. You also used it for necessities, not to go out and splurge. Take along your proof of where the money went and have it ready if the Trustee asks.
 

whoisonfirst

Junior Member
thanks!

In answer to the question, "Were we expecting this deposit refund when we filed?"

We had completed the cleaning at the old apartment and turned in the keys, but our landlords were being hesistant with information about the deposit. We were not entirely sure we would receive it at all until it actually arrived. Oh - and one day before it arrived (or thereabouts - I can't remember now), we received a letter stating it would be refunded. But at this time, we had already given our lawyer the paperwork and told him to file right away ...

So perhaps I should tell the trustee about this, too.

Thanks for your help!!
 

Ladynred

Senior Member
Kind of a toss-up really. You didn't actually know you were going to get a refund so that helps some. Ask your lawyer, but if the Trustee asks, you're better off telling him/her about it.
 

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