What if my bank statements show deposits of more than the income stated on my bankruptcy petition?

What if my bank statements show deposits of more than the income stated on my bankruptcy petition?

My husband is self employed, I am unemployed and I filed for chapter 7 bankruptcy. At my 341 hearing the trustee asked for the past 6 months of bank statements. My husband’s business was shut down from Dec. 2011 – March 2012. In Jan. and Feb. we received financial help from a friend. In March, we had to run the business out of our personal account. In those 3 months our deposits equaled more than our income, is this going to be a problem for me?

Answer: The trustee asking for the past 6 months of bank statements is pretty standard. The unusual deposits may or may not be questioned by the bankruptcy trustee. If they are, have an explanation ready for them (which it sounds like you do) and you should be fine. The trustee has the right to look into the deposits further but chances are pretty good that he will not as long as you can explain that it was a friend helping you out.

* You and I do not have an attorney-client relationship formed by our communications on this website. Advice given by me on this website is general advice based on partial information. You should not rely on any advice given without first hiring a lawyer in the area where the case is pending, and providing that lawyer with full information.

Answered by:

My AZ Lawyers
2 East Congress Street, Ste. 900
Tucson, AZ 85701
Office: (520) 307-0020

Morgan McCain, Tucson Chapter 7 and Chapter 13 Attorney.
Re-Posted from AVVO Legal Questions and Answers.