How will our savings be treated if I file for a chapter 13 bankruptcy? - Bankruptcy Law Questions and Answers- LawQA.com

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How will our savings be treated if I file for a chapter 13 bankruptcy?

I am thinking about filing Chapter 13 but we have saved money in the bank as we are renters and will have to move soon as our lease is up and building is being sold. How will our savings be treated?

Answer By Kevin Heupel
Heupel Law
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How your savings will be treated depends on your income, family size, and how much debt you plan to repay. In most instances, you have to repay the amount of savings to your unsecured creditors over a 3-5 year period.

Answer Applies to: Colorado
Replied: 10/3/2011

Answer By Eric Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis
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You generally cannot keep a savings in Chapter 13 since all of our disposable income is to be paid to creditors.

Answer Applies to: Indiana
Replied: 9/29/2011

Answer By David VanDyke
Bird & VanDyke, Inc.
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Savings can usually be retained if the total amount, including other assets that does not exceed the exemption limits.

Answer Applies to: California
Replied: 9/29/2011

Answer By Janet Lawson
Janet A. Lawson Bankruptcy Attorney
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That depends on what your other assets are and how much money you have. Without the numbers I can't specifically answer that. There is a "wild card exemption" though that lets you keep cash and other items in which you have more equity than allowed.

Answer Applies to: California
Replied: 9/29/2011

Answer By Darren Aronow
The Law Office of Darren Aronow, PC
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In a chapter 13, you can keep the money that you would normally be exempt for and the rest of the unexempt amount would be the minimum amount that your creditors would have to be paid in the payment plan. For example, if you have no assets, then you can be exempt for cash of up to $10,000 for the new york state exemptions or more if you filed under the federal exemptions. If your cash exceeded your exemption amount by $5,000, then you would have to pay your creditors at least $5,000 over the term of the plan.

Answer Applies to: New York
Replied: 9/29/2011

Answer By Spencer Hale
Jackson White, PC
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Savings will be treated like an asset and the value will be used to determine the minimum amount that you must pay over the course of the chapter 13 plan.

Answer Applies to: Arizona
Replied: 9/29/2011

Judith A. Runyon, Esq. Attorney at Law
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It depends on the amount and everything else you have. Talk to a bankruptcy attorney.

Answer Applies to: California
Replied: 9/29/2011

Answer By David C. Ayer
AyerHoffman, LLP
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There are exemptions which prevent some assets from being used to satisfy your creditors. Your bankruptcy attorney can explain them to you. One option might be to wait to actually file the petition until after you have moved and used the money for that purpose. Rent and moving expenses, particularly where you are forced to move by the sale, are legitimate expenditures.

Answer Applies to: Massachusetts
Replied: 9/29/2011

Answer By Dan Wilson
Dan Wilson Bankruptcy
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Ch 13 is different from Ch 7, In a 7 all non-exempt assets are turned over to the trustee for the benefit of creditors. Savings in a bank account are usually 75% protected, as they usually are earnings. (If bank account monies come from Social Security they are 100% exempt.) In a Ch 13 non-exempt assets are much less of a problem. Part of your Ch 13 plan is called the Ch 7 reconciliation. In short, in the plan unsecured creditors much receive at least as much as they would have if you filed Ch 7. But that is your lawyer's problem.

Answer Applies to: Colorado
Replied: 9/29/2011

Answer By Daniel Moulton
Law Offices of Daniel Moulton
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If its a lot, you can't file a Chapter 7, but you can do a 13, which is a repayment plan.

Answer Applies to: Illinois
Replied: 9/29/2011

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