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Can I Keep Cash I Have On Hand in Chapter 7 Bankruptcy?

Posted By Allmand Law Firm, PLLC || 21-May-2013

Keeping Cash on Hand During Chapter 7 Bankruptcy

There are exemptions available in Chapter 7 bankruptcy that may help protect your cash. Although the cash in question has to qualify as an exempt asset. It's common for consumers to be afraid of filing in fear of losing cash assets. The good news is you may be able to retain your cash and other assets of value upon learning which bankruptcy exemption provides adequate protection.

Bankruptcy exemptions vary depending on guidelines set by the state. There are also exemptions at the federal level, and in some cases, you may be able to utilize both types to provide full protection, since some exemptions may only offer a certain amount of coverage.

Cash assets that can be protected in Chapter 7 include public assistance funds, unemployment benefits, cash in bank accounts, and even proceeds from Social Security. Bank account funds of a married couple may qualify for protection if one spouse is filing for protection with the other spouse not being liable for debt owed included in the filing. Proceeds from a personal injury case may also qualify for protection.

In some cases, cash from a sale of personal property may not qualify depending on when the asset was sold. For instance, if you sell your vehicle before you file, the proceeds may not be considered an exempt asset. Meaning, if you have an asset or personal property that may qualify for an exemption before you file, but instead you sold the item and received cash, the cash from the sale may not be considered exempt. As always you should discuss your situation with an experienced bankruptcy expert in Dallas-Fort Worth.

Categories: Chapter 7 Bankruptcy
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