How Bankruptcy Trustees Find Bank Accounts: 5 Key Methods
A bankruptcy trustee uses various methods to find and review a filer's bank accounts during the bankruptcy process. Here are some key points on how they do it:
Bank Statement Requests
- Trustees typically request copies of bank account statements shortly after the bankruptcy case is filed and before the 341 meeting of creditors. 14
- They may ask for statements covering the filing date or several months of bank statements to verify the information provided in the bankruptcy forms. 4
Verification of Financial Information
- The trustee compares the bank statements with the information provided in the bankruptcy petition and schedules to ensure accuracy and consistency. 12
- They verify monthly payments, expenses, and deposits to ensure they match the figures listed in the bankruptcy forms. 24
Investigation of Suspicious Activity
- Trustees look for unusual transactions, such as large withdrawals, transfers to other accounts, or payments to family members or friends, which could indicate an attempt to hide assets. 12
- They investigate recent transfers of money that could have helped the filer qualify for bankruptcy. 2
Access to Financial Records
- Trustees have the authority to request and review detailed financial records, including bank statements, paycheck stubs, tax returns, and other financial documents. 67
- They can compel debtors to produce these records through court orders if necessary. 6