How will our savings be treated if I file for a chapter 13 bankruptcy? 19 Answers as of June 19, 2013

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?

Ask a Local Attorney. 100% Anonymous. Free Answers.

Free Case Evaluation by a Local Lawyer: Click here
Heupel Law
Heupel Law | Kevin Heupel
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: 10/4/2011
Indianapolis Bankruptcy Law Office of Eric C. Lewis
Indianapolis Bankruptcy Law Office of Eric C. Lewis | Eric Lewis
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: 9/30/2011
Bird & VanDyke, Inc.
Bird & VanDyke, Inc. | David VanDyke
Savings can usually be retained if the total amount, including other assets that does not exceed the exemption limits.
Answer Applies to: California
Replied: 9/30/2011
Janet A. Lawson Bankruptcy Attorney
Janet A. Lawson Bankruptcy Attorney | Janet Lawson
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
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
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
    Jackson White, PC
    Jackson White, PC | Spencer Hale
    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
    Judith A. Runyon, Esq. Attorney at Law | Judith A. Runyon
    It depends on the amount and everything else you have. Talk to a bankruptcy attorney.
    Answer Applies to: California
    Replied: 6/19/2013
    AyerHoffman, LLP
    AyerHoffman, LLP | David C. Ayer
    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
    Dan Wilson Bankruptcy
    Dan Wilson Bankruptcy | Dan Wilson
    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
    Law Offices of Daniel Moulton
    Law Offices of Daniel Moulton | Daniel Moulton
    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
    Bankruptcy Law Center
    Bankruptcy Law Center | Bill Zurinskas
    In a chapter 13 bankruptcy, your savings will not be taken from you as long as you reconcile it in the chapter 13 plan.
    Answer Applies to: Colorado
    Replied: 9/29/2011
    Law Office of Lynnmarie A. Johnson
    Law Office of Lynnmarie A. Johnson | Lynnmarie Johnson
    If they are above the exemptible amount, they would be taken to pay your creditors. After all, why should your creditors be punished by not being paid because you want to buy a house? As a side note, filing bankruptcy is likely to make it so that you cannot get a mortgage for two years.
    Answer Applies to: Michigan
    Replied: 9/29/2011
    Carballo Law Offices
    Carballo Law Offices | Tony E. Carballo
    Depends on the amount. You can exempt or protect a certain amount only. If too much then your plan payments will be higher because you need to pay in the plan the unprotected amount of savings.
    Answer Applies to: California
    Replied: 9/29/2011
    Bankruptcy Law office of Bill Rubendall
    Bankruptcy Law office of Bill Rubendall | William M. Rubendall
    Savings can be claimed exempt under section CCP 703.140. Consult an attorney for specific limitations.
    Answer Applies to: California
    Replied: 9/29/2011
    Attorney at Law
    Attorney at Law | Douglas W. Harold, Jr.
    In a Chapter 13 your savings would generally be safe, provided that you set up a payment plan that paid out at least as much to your creditors over the duration of the plan as they would have received if you had filed for Chapter 7 (and had to turn over the non-exempt part of the savings for the benefit or your creditors).
    Answer Applies to: Virginia
    Replied: 9/29/2011
    Ashman Law Office
    Ashman Law Office | Glen Edward Ashman
    First of all, get a lawyer. You will create a disaster without one. In some cases, and this depends on the numbers and how your paperwork is drafted, you can retain funds. In some cases, you may need some to fund your case.
    Answer Applies to: Georgia
    Replied: 9/29/2011
    Colorado Legal Solutions
    Colorado Legal Solutions | Stephen Harkess
    Your savings is an asset and will have to be considered in determining the proper plan payment to ensure that the plan is in the best interest of the creditors.
    Answer Applies to: Colorado
    Replied: 9/29/2011
Click to View More Answers:
12 3 Free Legal QuestionsConnect with a local attorney