Why do I need to submit Bank Statements after I have filed a bankruptcy case?

It can come as a surprise to some clients that a bankruptcy trustee requests additional bank statements after their case has already been filed. It can feel like something went wrong, but it is actually a very normal part of the process! The trustee’s job is to verify the financial information in your petition and ensure that everything is accurate, complete, and consistent with the Bankruptcy Code. Bank statements are one of the most reliable tools they have to do that. 

The trustee will typically request more, up to 90 days, of all open bank account statements to confirm your account balances on the filing date, review recent transactions, check for large withdrawals or transfers, or verify income deposits. There can even be more than one request for statements made. Sometimes the trustee’s request is triggered by something simple, like an account showing activity close to the filing date or a deposit that needs clarification. Other times, they may be making sure there were no recent transfers to friends or family, or checking whether any funds in your accounts were exempt or non-exempt on the day you filed. These follow-up questions are routine and help the trustee confirm that your petition matches your real-world finances as closely as possible.

This doesn’t mean you did anything wrong! It just means the trustee is fulfilling their duty to review your financial picture thoroughly. Providing the requested statements quickly helps your case stay on track and avoids delays in receiving your discharge.

CALL NOW FOR A FREE STRATEGY SESSION FROM AN MN BANKRUPTCY LAWYER AT LIFEBACK LAW FIRM

At LifeBack Law, we help clients gather and submit these documents so the trustee gets exactly what they need and your case continues moving forward smoothly. When the time is right, or when you are ready, reach out to Minnesota’s MOST Kind and Helpful bankruptcy law firm by going now to www.lifebacklaw.com. You will be so happy you did.