Even though it’s not a formal requirement for bankruptcy, most chapter 7 bankruptcy trustees will ask for a copy of a bank account statement before going into a 341 meeting. It’s advantageous to give trustees access to this information so that they can help determine your qualifications status for a chapter 7 bankruptcy as well as make sure that you are presenting them with valid information. Here is some information your bank statements will tell your trustee.
Your Regular Bank Account Balance
If a bankruptcy trustee sees that you are regularly struggling financially, this will demonstrate that you truly need to access the bankruptcy solution. A bankruptcy trustee can ask for two years of bank statements and if they see that the expenses you listed on your bankruptcy are different from what they are seeing on your bank statements, there’s a chance that your bankruptcy may be declined.
Your Bank Account Balance At The Time Of Filing
Taking a look at your bank account balance at the time that you file will also ensure that you have not been shuffling money around in attempts to hide your income or assets. If you have $30 in your bank account at the time of filing but you had $5000 in your account just two weeks prior, this can suggest that you may have made efforts to give or hide the money so you didn’t have to repay your creditors.
Your bank account balance will display your income over a two-year period. A trustee will be using pay stubs and tax returns to compare them to your deposits. If there’s a series of discrepancies, you have to explain where the extra money is coming from and if you are receiving extra income that was not reported.
By taking a look here at the ongoing account activity in your current balances, a trustee will be able to demonstrate that you have a need for bankruptcy and that the information you presented to them is truthful. These are items that will increase your chance of qualifying for and completing your bankruptcy.
This post was written by Trey Wright, one of the best bankruptcy lawyers in Tallahassee, FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, which specializes in areas related to bankruptcy law, estate planning, and business litigation.
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