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cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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if you file bankruptcy some time in June is the three month

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if you file bankruptcy some time in June is the three month look back period for payments three calendar months, i.e., April May and June or March April and May or is it from the date of filing?
If you have taken all cash out of your bank account prior to the look back period is there any issue with that? I want to have enough money to pay for food and rent in case they would put a lien on my account before i file in case i lose the frivolous lawsuit. you never know how a judge will rule even though the documents for the lawsuit were forged.

cfortunato :

Hi JACustomer,

cfortunato :

The length of time of the lookback period depends on what is done with the assets in question.

cfortunato :

What will you do with the cash you take out of your bank account?

Customer:

i want to repay a 401k loan. i also want to have money on hand for rent and food. i would not be transferring any money to any individuals.

Customer:

i want to repay a 401k loan so i can protect this cash.

Customer:

i assume that if i pay a liened state tax bill that wouldn't be considered for a clawback since it is due since 2008.

Customer:

can i reopen a new bank account if they lien the one i have. the person who is suing is a complete crook. he was convicted of 3 counts of felony forgery and fined half million for tax fraud. forging documents to try to get money from me is just part of what he does. he was in demolition originally and they don't have the best records. i am a little afraid since i think he is a connected individual.

Customer:

i also want to have money to pay the attorney for filing the bankruptcy.

cfortunato :

The 3-month lookback is actually 90 days, and applies to payments to creditors within the 90 days preceding the filing of a Bankruptcy.

cfortunato :

Putting money back into a 401K account is not considered to be a payment to a creditor, so the 90-day lookback period would not apply.

cfortunato :

If a lien is placed on your bank account before you file a Bankruptcy, you would be able to have the lien released by filing a motion asking the Bankruptcy court to release the lien.

Customer:

if i were to catch up on my 401k payments by putting 80% of my salary into a 401k for two months prior to filing bankruptcy would this be an issue?

cfortunato :

That would not be an issue, as there are no restrictions on the amount of money that can be used to put back money that was borrowed from a 401k account.

Customer:

is it okay if i take the money out 100 days before filing. once it's liened it could be months before it's released and then i have no ability to pay my rent or buy food.

cfortunato :

You can take money out of your bank account at any time before filing a Bankruptcy. But if you still have the money when you file, you will have to list the money that you still have as one of your assets when you file.

Customer:

i can also be paid by check and cash my check instead of depositing it and pay my rent by money order. is that okay too?

cfortunato :

Do you mean instead of having your pay directly deposited into your bank account?

Customer:

yes.

cfortunato :

There would be no problem if you decided to stop having your check directly deposited into your account, and if you instead cashed your check.

cfortunato :

By the way, your account cannot have a lien placed on it if there is less than $1860 in the account.

cfortunato :

As you may need to keep some money in the account to be able to cash your check.

Customer:

it wouldn't after paying the rent. i think i'll only have about 2000 after paying the attorney at most anyway.our joint account is only used by my husband for his social security check which can't be liened or if it is i think it's subject to damages.

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