does the trustee seize your money for rent, bills, food?

[whoisonfirst]

What is the name of your state? OR

This is about Chapter 7 in Oregon.

I understand that you can only keep $400 cash when you file Chapter 7 in Oregon. What I am worried about it is how I will pay rent, utilities, doctor bills, food, etc., if the trustee is always taking everything above $400.

Does the trustee just automatically seize everything over $400 in your bank account? Or does he/she recognize that some of that money goes to legitimate expenses and allow for this to happen? For example, let's say mh husband's paycheck is deposited on the 26th. At that moment, we would have more than $400 cash. But since we would need to pay rent, utilities, and other allowed expenses, would it just be understood that we can write checks to pay for those things? Or would the trustee swoop in and take it?

Or am I just confused about how that works? Is it only at the time of the filing? Or the meeting of the creditors?

Any help is much appreciated. Thanks in advance.

 

[donymax]

What is the name of your state? OR

This is about Chapter 7 in Oregon.

I understand that you can only keep $400 cash when you file Chapter 7 in Oregon. What I am worried about it is how I will pay rent, utilities, doctor bills, food, etc., if the trustee is always taking everything above $400.

Does the trustee just automatically seize everything over $400 in your bank account? Or does he/she recognize that some of that money goes to legitimate expenses and allow for this to happen? For example, let's say mh husband's paycheck is deposited on the 26th. At that moment, we would have more than $400 cash. But since we would need to pay rent, utilities, and other allowed expenses, would it just be understood that we can write checks to pay for those things? Or would the trustee swoop in and take it?

Or am I just confused about how that works? Is it only at the time of the filing? Or the meeting of the creditors?

Any help is much appreciated. Thanks in advance.

We filed in Oregon in March. Our attorney told us that what matters to the bankruptcy trustee is the amount in the bank at time of filing. We were advised to file when we knew that we would have very little meney in the bank. We had $25.00 in our account at time of filing. At our 341 meeting the Trustee asked questions concerning our finances only on the filing date. Disposable income is that which is left over after monthly bills and expenses have been paid. That must be kept to a minimum or you may have to file chapter 13.

I think you'll find that the Trustee will be very reasonable. Ours was very courteous also. He/she is looking for signs of fraud, like trying to hide assets or money. If you're honest and straightforward you will not have any problem at your 341 meeting. In southern Oregon we found a good attorney that didn't break our bank. I would recommend you do the same.

 

[whoisonfirst]

Thank you!

I feel so relieved reading your message. Thank you! This makes much more sense to me now.

 

[JETX]

And is anyone thinks that they are going to be able to scam the trustee into thinking that the only cash they have in the bank is that on the date of filing, forget it. The Trustee will ask for copies of your bank account statements for at least the six months previous to the filing.

 

[whoisonfirst]

of course

No one is talking about scamming the trustee. I was simply worried that our money for rent and bills would be seized, leaving us homeless. For example, I was worried that money deposited on the 26th would be seized before the 1st simply because it is over $400, thus leaving us without rent.

But now I understand that the expenses will be taken into account. At least I hope so.

And, of course, I understand that any cash outside the bank account would be the property of the trustee. I certainly did not mean to imply otherwise.

 

[JETX]

"No one is talking about scamming the trustee."
*** And no one said you were. I made my post so that others wouldn't later read the thread and think that they had found a 'loophole' that they could consider using.

 

[whoisonfirst]

makes sense

Ah, that makes sense. It would, indeed, be a bad thing is someone got that impression.

 

[donymax]

And is anyone thinks that they are going to be able to scam the trustee into thinking that the only cash they have in the bank is that on the date of filing, forget it. The Trustee will ask for copies of your bank account statements for at least the six months previous to the filing.

That is not always true. Our Trustee did not ask for any other bank statements other than the one that covered the date of filing.

 

[imwoodstock]

My trustee didn't ask for any bank statements. I made sure I was under the $400 at the time of filing and have cashed my check at the bank instead of depositing the money. I go to the post office then and get money orders for any of my bills. It's a bit scarry having that much money around, but it works for now.