CALL FOR A FREE
INITIAL CONSULTATION
813.254.5696

BRIDGING YOU TO A BRIGHTER FUTURE

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

What Do I Need to Know about Property Seizure?

What Do I Need to Know about Property Seizure?

One of the scariest things that can happen when you’re dealing with out-of-control debt is property seizure. Creditors might legally...
Read More
I’m Self Employed – Can I File for Bankruptcy?

I’m Self Employed – Can I File for Bankruptcy?

When it comes to being self-employed, sometimes it seems the odds are stacked against you. Taxes, insurance, other expenses… the...
Read More
Can I Move Out of State after Filing for Bankruptcy?

Can I Move Out of State after Filing for Bankruptcy?

Most people know there are limitations on traveling and moving if someone is accused of committing a crime, but what...
Read More
What Should I Know about College Loan Debt?

What Should I Know about College Loan Debt?

If you’re thinking about borrowing money to pay for college or your child is thinking about college and you know...
Read More
Should You Continue Paying Your Debts after You Decide to File for Bankruptcy?

Should You Continue Paying Your Debts after You Decide to File for Bankruptcy?

One of the most common questions bankruptcy lawyers get from clients is whether or not they should keep making payments...
Read More
Debt in Collections? Five Things You Shouldn’t Do

Debt in Collections? Five Things You Shouldn’t Do

Having a debt be turned over to collections is not the end of the world. Even those who are careful...
Read More
How Can I Avoid a Second Bankruptcy?

How Can I Avoid a Second Bankruptcy?

Bankruptcy is viewed as a solution to serious money challenges. It offers a brand new start and helps you get...
Read More
Will Bankruptcy Help Protect My Vehicle from Repossession?

Will Bankruptcy Help Protect My Vehicle from Repossession?

The idea of bankruptcy might be intimidating, but filing can actually help you in a variety of ways. One of...
Read More
What is the “Wild Card Bankruptcy Exemption”?

What is the “Wild Card Bankruptcy Exemption”?

There are a lot of terms that arise when you’re considering bankruptcy. It’s important to understand what each thing means...
Read More
Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

Will Filing for Bankruptcy Help You Remove a Court Ordered Judgment?

A court ordered judgment against you related to debt can wreak havoc on your life, but it might be possible...
Read More

Contact Us

Search Website

Archive

Request a FREE Consultation

For The Next 5 Days Get A Free Book About Bankruptcy


 
comodo 10.0Robert Marc Geller
Robert Marc GellerClients’ ChoiceAward 2017 Robert Marc GellerReviewsout of 32 reviews LEA

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

Pay Online     Bankruptcy Courses    

Office Locations

$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
Maps & Directions


Tampa Law Office Map

Satellite 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
Maps & Directions


Map and 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.