Q: During Chapter 7 Bankruptcy, is it normal for the trustee to ask for your unemployment application?
I filed for chapter 7 in Texas with over 10,000 in checking accounts. 100% of this money is from unemployment compensation so I claimed it all as exempt. I told my trustee that at 341 meeting, and he said that it might not be exempt.
I was expecting him to ask for bank statements which would prove the source of the funds.
Instead, he asked "to see all applications I submitted to the government to receive these benefits."
In Texas, TWC handles unemployment so I've already submitted a request with TWC for a copy of my UI application.
I just wanted to know if it was normal for a trustee to ask for this... and whether or not I should be concerned with how my case is proceeding.
A: It’s not normal. But it is permissible as most debtors don’t have 10k in the bank. Give him the apps and let him see it is all unemployment.
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