Using Your Bank Account During Filing of Chapter 13 Bankruptcy

Macon Georgia Chapter 13 Bankruptcy Attorney

Bankruptcy is not an event but a process that proceeds in stages and depending on type of bankruptcy opted for, it can extend to a period of five years. Hence it is better to be mentally as well as financially equipped to tide over these days prior to getting debts discharged legally. A chapter 13 bankruptcy is a wage earner’s bankruptcy and is ideal for those with a regular income. Very often such people find that their debts and financial management has gone out of control and have to file for bankruptcy as a means to save their properties and repay their debts.

If you have decided to file for chapter 13 bankruptcy after due consideration and thought and in consultation with an experienced bankruptcy attorney, you would have realized that completion of bankruptcy process would take around three to five years. Thus it is very probable that you would need to use your bank account during the course of a chapter 13 bankruptcy. There are certain set rules for this.

The court appointed bankruptcy trustee would review money spent by you during time period of 90 days leading up to bankruptcy filing date. Thus you need to take care and limit money spend from your bank during this period. Do not use money from bank for any unnecessary purchases during this 90 day period. If debtor is found to have expended money beyond his necessities during this time period sanctions can be imposed on him.  Under the circumstances dismissal of case along with a waiting period before refilling can be allowed can be imposed.

Hence make sure that you maintain receipts of all purchases that are made during these 90 days using funds from your bank account as well as save all bank statements received in this time frame. The bank statements have to be attached to bankruptcy petition and submitted in bankruptcy court. Apart from your withdrawals you also need to keep track of all deposits you make into the bank account during the ninety day period.

Your spending is going to be assessed and analyzed while the court supervised repayment plan is going to be drafted. The court has to make sure that your income from all sources and your basic expenses will leave enough money to be paid to creditors through the new repayment plan. Minimum utility and monthly expenses are allowed by the court and there is a specific amount decided for this on basis of place of residence and size of family.

The remaining amount of money from your income is distributed among your creditors through your bankruptcy trustee. Thus diligent and careful use of money in your bank account is very important in planning your repayment plan in a chapter 13 bankruptcy.

Call a skilled Macon bankruptcy lawyer if you are considering a Chapter 13 bankruptcy.