My name is Ron Drescher. I’m an attorney practicing
bankruptcy and creditor’s rights in Maryland, Delaware, Pennsylvania and Virginia. Today
I want to answer the question, “I wrote some checks out before I want to file bankruptcy
and my lawyer tells me I have to wait to file until after the checks clear. Why is that?”
The reason for that is bankruptcy is a snapshot of your financial condition as of the day
you file your bankruptcy petition. So, that means that if you’ve written a check for your
mortgage or for a car payment or some other substantial amount and that hasn’t cleared
before you file the bankruptcy, you technically still have the assets in your bank account
that you’re going to use to pay on those checks and to make them good. This is why bankruptcy
trustees want to see your bank statement for the day that you file your case; because you
may think that you have less money in the bank because you’re written checks. The checks
haven’t cleared. So you have more money than you think. That could create a problem if
you don’t have enough room in your exemptions to allow you to keep that money and make good
those checks. My name is Ron Drescher. I’m an attorney practicing bankruptcy and creditor’s
rights and if you have a question about the timing of your bankruptcy case, please pick
up the phone and call me. I would love to hear from you.