Cash in Checking Accounts

Today, I was in bankruptcy court in Kansas City, Kansas, and the Judge made several interesting statements. He said that there is an ongoing problem with bank accounts. Kansas has no exemptions for cash or money in bank accounts. Before the internet was so common, it was hard to know it there were outstanding checks or not. I asked my clients to go to the bank and see if this check or that check had cleared. I also suggested that my client use money orders for a few weeks before filing. Then there were no mistakes. I tell everyone that Trustees want all of the money in the checking accounts on the day of filing. If clients just expect to turn the money over ... then there are no surprises. That is what I want my clients to have during this process .... no surprises ... well good ones are ok.

In Missouri, we have a wild card to use to protect cash, bank accounts, and tax refunds. However, it is limited. I still like the bank accounts to be as low as possible. I beg my clients to get the money out of the accounts before we file. That does not mean having the money in their hands, but rather to spend it on things that my clients need .. like lights, water, gas, and insurance.

Well, have a great weekend. I will get the part II up soon. We have had a very busy week with too many people in the hospital and a death in the family. It will get better ... take care.

Susan