If you are thinking of filing for bankruptcy and you are holding onto uncashed checks because you think that you don’t have to declare it as income until it is cashed — think again. After you file for bankruptcy there will be a meeting with the Trustee’s Office under section 341 of the Bankruptcy Code. At the 341 meeting they will ask for updated bank account statements and, believe me, the trustee will review them and ask questions about any unusual checks that are deposited. If that money cannot be exempted under exemption scheme you and your lawyer chose when you filed the petition, the trustee will make a demand for the funds. The best thing to do is to let your attorney know about the checks! That way if there is a possibility of exempting the amounts, or using the money on other exempt items (like prepaying your rent or mortgage). And honesty is always the best policy when it comes to filing bankruptcy and dealing with the trustee.
You Have an Uncashed Check and You Filed for Bankruptcy? Tell Your Lawyer.
by CEF | Feb 8, 2017 | Chapter 13, Chapter 7, General | 0 comments