CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

How is Cash Handled in Chapter 7 Bankruptcy?

How is Cash Handled in Chapter 7 Bankruptcy?

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.

Tampa Bankruptcy Law Blog

Common Misunderstandings about Chapter 13 Bankruptcy

Common Misunderstandings about Chapter 13 Bankruptcy

If there’s one thing that’s true about bankruptcy, it’s that there are a lot of misconceptions out there about the...
Read More
What Post-Bankruptcy Life REALLY Looks Like

What Post-Bankruptcy Life REALLY Looks Like

Life after Bankruptcy The idea of living without debt is the dream of many. This is especially true for those...
Read More
Five Things You Should Know Before Filing for Bankruptcy

Five Things You Should Know Before Filing for Bankruptcy

5 Factors that Affect Bankruptcy Filing Bankruptcy can be a scary step, but it’s one that can significantly improve your...
Read More
Getting a Chapter 13 Discharge without Completing Your Payment Plan: What You Need to Know

Getting a Chapter 13 Discharge without Completing Your Payment Plan: What You Need to Know

Chapter 13 Bankruptcy Discharge and Non Completion of a Payment Plan When you file for Chapter 13 bankruptcy you’ll be...
Read More
How Do You “Declare Bankruptcy”?

How Do You “Declare Bankruptcy”?

Declaring Bankruptcy There’s a lot of misinformation regarding bankruptcy. It’s unfortunate because many people who are struggling financially could benefit...
Read More
What Does a Float Do in Bankruptcy?

What Does a Float Do in Bankruptcy?

Bankruptcy Float There are numerous terms related to bankruptcy that are new to those who file and might seem confusing...
Read More

Why Filing for Bankruptcy Can Be a Smart Decision

Bankruptcy can be a smart decision Everyone wants to be smart, right? They want to make the best choices and...
Read More
Will My Spending Be Monitored If I File for Bankruptcy?

Will My Spending Be Monitored If I File for Bankruptcy?

Bankruptcy and Spending Bankruptcy can offer many advantages, but it can also mean exposing your financial life to the world....
Read More

Buying a Home after Bankruptcy

Getting a Mortgage After Bankruptcy Many people assume buying a home after filing for bankruptcy is impossible. As a matter...
Read More

Bankruptcy Red Flags: How to Avoid Suspicion of Fraud When You File

Bankruptcy Fraud Red Flags Filing for bankruptcy is a complicated process. It’s possible to file on your own, but it...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodoavvo1
avvo2avvo3LEA

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

Pay Online   Bankruptcy Courses   

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


Tampa Law Office Map

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





Maps & Directions

At the Tampa Bay law firm, the Law Offices of Robert M. Geller, P.A., we help people with consumer bankruptcy matters in the Tampa Bay-St. Petersburg,  Florida communities such as Clearwater,     St. Petersburg, Tampa, Thonotosassa, Riverview, Lutz, Plant City, Brandon, Carrollwood, Wesley Chapel, St. Petersburg Beach, Lakeland, Mulberry, Dade City, Pinellas Park, Largo, Seminole, Odessa, Oldsmar and Lithia, and counties such as Hillsborough County, Pinellas County, Pasco County, Polk County and Manatee County.