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 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
Understanding Credit: What Factors Affect Your Score

Understanding Credit: What Factors Affect Your Score

Dealing with financial problems can be one of the most difficult challenges you’ll ever face. Not only is it overwhelming,...
Read More
Health Issues Drove Me to Bankruptcy and I’m Still Getting Medical Bills: Can Bankruptcy Help?

Health Issues Drove Me to Bankruptcy and I’m Still Getting Medical Bills: Can Bankruptcy Help?

Medical issues are one of the most common reasons people file for bankruptcy. In most cases, health emergencies arise unexpectedly...
Read More
Is Filing for Chapter 7 Bankruptcy a Bad Idea?

Is Filing for Chapter 7 Bankruptcy a Bad Idea?

If you’ve been dealing with financial challenges for an extended period of time, chances are you’ve considered bankruptcy. Most people...
Read More
Can Bankruptcy Raise Your Credit Score? You Bet!

Can Bankruptcy Raise Your Credit Score? You Bet!

One of the primary concerns people have when filing for bankruptcy is whether or not doing so will affect their...
Read More
Can Filing for Bankruptcy Affect Your Social Security Benefits?

Can Filing for Bankruptcy Affect Your Social Security Benefits?

Many people rely on social security benefits to pay their bills. Unfortunately, it can be difficult to make ends meet,...
Read More
What to Do If a Creditor Tries to Collect after Your Bankruptcy Case Closes

What to Do If a Creditor Tries to Collect after Your Bankruptcy Case Closes

Bankruptcy is one of the best options available if you’re experiencing serious financial struggles. It can provide you with relief...
Read More
How Bankruptcy Can Help You If You are Facing Foreclosure

How Bankruptcy Can Help You If You are Facing Foreclosure

Owning a home is part of the American dream and losing that home through foreclosure is a nightmare. Mortgage foreclosure...
Read More
How Can Undue Hardship Help You in Bankruptcy If You’re Dealing with Student Loan Debt?

How Can Undue Hardship Help You in Bankruptcy If You’re Dealing with Student Loan Debt?

Despite millions of Americans struggling with student loan debt and a good deal of them defaulting on or at risk...
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    

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.