Bankruptcy Trustee Bank Account Monitoring: What to Expect

In the context of bankruptcy, particularly Chapter 7 and Chapter 13, the trustee does have the authority to review and monitor your bank accounts to a certain extent, but the scope and duration of this monitoring can vary.

Chapter 7 Bankruptcy

• Initial Review: The trustee will typically request bank statements to verify the information provided in your bankruptcy petition, including your income, expenses, and account balances at the time of filing. 14
• Verification of Assets: The trustee checks for any non-exempt assets that could be used to pay creditors. This includes reviewing bank statements to ensure that the amounts listed in your petition are accurate. 14
• Limited Ongoing Monitoring: While the trustee has the right to audit your accounts, continuous monitoring of your bank accounts throughout the bankruptcy process is not common. The primary focus is on the financial situation at the time of filing. 46

Chapter 13 Bankruptcy

• Pre-Filing Review: The trustee may request bank statements covering the date of filing and the preceding 60 days to verify income, expenses, and to check for any suspicious transfers. 35
• Plan Administration: The trustee's main role is to collect and distribute payments according to the approved plan. While they may request additional financial information, continuous monitoring of bank accounts is not typical. 35

General Considerations

• Cooperation: It is crucial to cooperate with the trustee and provide requested financial documents to ensure the smooth progression of your bankruptcy case. 12
• Accuracy: Ensuring that your bankruptcy petition and supporting documents are accurate and complete is essential to avoid any issues or delays. 14
• Legal Guidance: Consulting with a bankruptcy attorney can help you understand the specific requirements and expectations in your case, including what information the trustee may request and why. 14