money in bank accounts

[joemuni]

What is the name of your state? new jersey
I have a few thousand in bank accounts. I am planning to use it to pay lawyer for BK, and for law suites of objectors to BK.
Someone told me I can't use that money for lawyer because it came from a cash advance I took from credit card back in Oct. 2001, 10 months ago, and creditor would claim it.
My question is how would anybody know where that money came from, and don't I have a wild card personal property that I would keep that money. Or should I take it all out, and hide it or spend it for lawyer , and necessities.
Would creditors be able to see bank accounts statements over past months before filing so they would know if I spent or took out all money from accounts ?

 

[Ladynred]

You can use Federal Exemptions in NJ, so you have a lot of leeway, but cash isn't one of them, it is NOT considered 'personal property'.

No, creditors will not be able to see bank statements, but the Trustee could demand them if he thinks you're up to something.
Cash advances for 12 months prior to filing are looked at, but its what you spend them on that makes a difference. I doubt if you said you used it for your lawyer that it would be thrown out. If you use advances for necessities, no one is going to question it.

Do you really think you'll have that many objections to your BK ??? Sounds a bit odd, most people never see an objection.

If you've got a lot of cash in accounts, you need to drain them.. but slowly, so that if the Trustee does demand statements, there aren't any large withdrawls or purchases showing.

 

[joemuni]

Thanks for comments, Ladynred. They were very helpful.
I have one lawsuit for judgment now that I am fighting with legal coaching.
And I have other creditors that say they are deciding to sue, since I can't pay them. Collection agencies have been calling routinely, and leaving messages. So their next step would be to sue. The BK would stop legal actions, but they could still file objector suite after creditor meeting.

Thanks for responses.

 

[Ladynred]

Yes.. they CAN object... but from what I've read on these boards and others for many months, usually they do not unless they really think you're up to fraud.