What Your Bank Statements Tell The Bankruptcy Trustee

A bank statement is usually used in a bankruptcy case to back up the statements that you made on your bankruptcy application. A banker to the trustee will take a look at your bank statements and see a number of items. Here are some of the top things a trustee will look for on your bank statement.

Your Income

A bankruptcy trustee will be looking at your income and making sure that the amount that comes into your account is the same that you’ve reported on your bankruptcy application. If there are additional sources of income or even large sums of money that have been given as gifts, you may have questions from your trustee or a denial of your application if they remain unreported. 

Your Financial Activity

You must attend credit counseling if you file for bankruptcy in the United States. Based on your previous financial activity, a trustee may be trying to see if you’ve been hiding your money, selectively playing certain creditors, or liquidating funds from your account so that they cannot be paid to your creditors. 

Your Investments

Your bank statement can also display more information on your assets. If you have stocks, investments, or an additional savings account that has been underreported under bankruptcy application, you could be denied your application. 

Your Statement Before You Applied

If you have withdrawn a large amount of money before you filed for bankruptcy, this is often taken as a sign that you are filing for bankruptcy fraudulently. Trying to make fast moves with your finances before you file for bankruptcy can mean that your debts will not be excused as there will be more debt to forgive. 

If you could use assistance in meeting with a trustee and preparing for bankruptcy, contact us today.

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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