' Bankruptcy Cash on Hand Exemption - Law Offices of Robert M. Geller
CALL NOW!
FREE PHONE/VIRTUAL CONSULTATION

How is Cash Handled in Chapter 7 Bankruptcy?

Bankruptcy And Cash On Hand.It might surprise some people to know that someone with cash can still file for bankruptcy. As a matter of fact, you need to pay a fee in order to file so you need to have some liquid income to begin the bankruptcy process.

Despite struggling to make ends meet and needing to take the drastic step of filing for bankruptcy, it’s possible you’ll have some cash in a checking or savings account – or in your wallet – when you file for Chapter 7 bankruptcy. Not to mention you might accumulate cash throughout the course of your bankruptcy, through wages and various other forms of compensation.

What happens to your cash when you file?

Bankruptcy Exemptions Can Apply to Cash

When you file for bankruptcy, you and your attorney will discuss what assets you have and whether or not you can protect or exempt any of those assets. Most people who file for Chapter 7 have very few assets, but they still might have some.

Non-exempted assets can be used by the bankruptcy trustee to pay your creditors.

Cash can be exempted but there are guidelines concerning how much you can exempt and how the exemption is handled. The amount of cash you can exempt in a bankruptcy filing varies from state to state and may or may not be based on federal exemptions.

For instance, Florida does not use the federal exemption guidelines and the amount of cash that can be exempted depends on a variety of factors, including whether the cash is earmarked for anything and whether or not the filer has used the homestead exemption.

To learn more about Florida’s bankruptcy exemption guidelines, check out this information from Nolo.com.

The types of cash that might be able to be exempted include:

  • Maintenance and support from a former spouse
  • Victims’ compensation
  • Insurance benefits
  • Bank deposits
  • Public assistance
  • Pension and retirement income
  • Veterans’ benefits
  • Unemployment compensation
  • Workers’ compensation
  • Wages up to $750 per week or the greater of 75% or 30 times the federal minimum wage

Exemptions are Unique to Each Bankruptcy Filing

Determining how much and whether cash can be exempted in bankruptcy filing varies from person to person. This is one of the reasons it’s so important to work with an experienced bankruptcy attorney. He or she can help you protect all of your assets, including any cash you might have on hand or be receiving during the course of your bankruptcy.

If you have questions about how cash will be handled should you choose to file for bankruptcy or you need help filing, contact the Law Office of Robert M. Geller at 813.254.5696 to schedule a consultation.

Archive

Video Testimonials

Tampa Bankruptcy Law Blog

Are Trusts Protected from Bankruptcy?

Trusts are powerful estate planning tools. They allow people to protect and distribute their assets according to their wishes. This...
Read More

The Truth About Bankruptcy and Buying a Car

The Truth About Bankruptcy and Buying a Car Bankruptcy often carries a stigma of financial ruin and a bleak future....
Read More

How Do Bankruptcy Lawyers Get Paid?

Bankruptcy can be a stressful and overwhelming experience, but having the right legal representation can make all the difference in...
Read More

Do You Lose Your Home When You File for Bankruptcy?

Filing for bankruptcy can be a daunting prospect, especially when it comes to concerns about losing one's home. Your home...
Read More

Can You File Bankruptcy During a Divorce?

Divorce and bankruptcy are personally difficult and also complex legal processes that can have significant implications for your financial future....
Read More

Can You File Bankruptcy on Restitution?

Facing financial struggles can be overwhelming, especially when debts include complex legal obligations like restitution. What is restitution and how...
Read More

Can You File Bankruptcy After a Judgment?

Receiving a judgment against you in a lawsuit can be a distressing experience. This is especially true if you're already...
Read More

Can Back Taxes Be Included in Bankruptcy?

Dealing with back taxes can cause a lot of stress and financial burden for anyone facing financial hardship. If you're...
Read More

Can an Estate File for Bankruptcy?

Many people wonder whether or not an estate, such as the one left behind after someone passes away, can file...
Read More

How Long Should I Keep My Bankruptcy Discharge Papers?

If you've successfully navigated the bankruptcy process and received your discharge papers, congratulations are in order. It's a significant milestone...
Read More

Bankruptcy

For The Next 5 Days GET A FREE BOOK About Bankruptcy

Learn More

Infographics

We are A Debt Relief Agency.
We help people file for bankruptcy under the Bankruptcy Code

Pay Online Bankruptcy Courses Newsletter Subscription

Call For A Free Initial Consultation

813.254.5696

Tampa Office

Law Offices of Robert M. Geller, P.A.
807 West Azeele Street
Tampa, FL 33606
T: (813) 254-5696
T: (800) 853-7549
F: (813) 253-3405

Map And Directions

St. Petersburg Office

Law Offices of Robert M. Geller, P.A.
125 5th Street South
(Wells Fargo Financial Center)
2nd Floor, Suite G
St. Petersburg, FL 33701
T: (727) 532-3939

Map And Directions

Pasco Office

23526 State Road 54
Lutz, FL 33559
T: (813) 336-2320

Map And Directions