Should I wait for my checks to clear before filing bankruptcy?
The clear answer to this question is a definite YES! Bankruptcy is a snapshot of your financial condition as of the day you file your bankruptcy petition. So, 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 waiting for the payments to clear on those checks. 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. But 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. You may find yourself in a jam if you have to write a check in that amount to your Chapter 7 trustee.