What is the limit on cash in your bank account under chapter 7 bankruptcy? 13 Answers as of December 29, 2014

What is the limit on our checking account?

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Richard B. Jacobson & Associates, LLC | Richard B. Jacobson
If you use the Wisconsin exemptions it can be $10,000 for the two of you. If you use the federal list then it could be more or less depending on your circumstances.
Answer Applies to: Wisconsin
Replied: 12/29/2014
Ronald K. Nims LLC | Ronald K. Nims
The bankruptcy law doesn't set a limit on the amount of cash you have in your bank account to file a chapter 7 bankruptcy. However as a practical matter, having a large amount of cash could cause you some problems. The trustee could seize your cash and use it to pay himself and your creditors. A large amount of cash would be an indication that you have an income which is greater than the Chapter 7 limit. There are various exemptions which could apply to cash. All states have an exemption for a small amount of cash and most states have a wildcard exemption which can be used for anything including cash. The wildcard exemption in some states can be over $20,000. Some cash is exempt because it came from an exempt source, for example, social security is always exempt even if you've had the money for some time (the problem is proving that the money came from SS rather than elsewhere.)
Answer Applies to: Ohio
Replied: 12/22/2014
Freeman Law Group, LLC
Freeman Law Group, LLC | Derek Freeman
There's no limit on how much money you can have when you file bankruptcy, whether you have that money in your pocket or in the bank. That being said, you want to have as little money as possible when you file your case. Any money you have is considered disposable earnings, and in Colorado you can claim only 75% of it exempt. In other words, 25% of your money in the bank is considered property of the bankruptcy estate, and can be taken by the trustee to pay your creditors. If the non-exempt amount is small enough, the trustee won't consider it worth the effort and will leave it untouched. However, if you have thousands of dollars in the bank, the trustee will probably demand the non-exempt portion.
Answer Applies to: Colorado
Replied: 12/22/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
The NY wildcard exemption, which can include cash and any other non exempt assets, would be $12,725.00 as long as you are not using the homestead exemption.
Answer Applies to: New York
Replied: 12/22/2014
In general you have about $12,500 for a single filer to exempt items such as cash and bank account funds.
Answer Applies to: Minnesota
Replied: 12/22/2014
    Idaho Bankruptcy Law | Paul Ross
    In Idaho you can exempt 75% of the monies in your bank account on the day you file the bankruptcy as long as those monies are all traceable to wages. $1,000 means you may have to pay $250 to the Trustee. $100 means you may have to pay $25. For that reason, I prefer to have the accounts as low as possible on the date of filing. (Pulling out cash will not save it, in fact you are more likely to lose it).
    Answer Applies to: Idaho
    Replied: 12/22/2014
    Steele, George, Schofield & Ramos, LLP
    Steele, George, Schofield & Ramos, LLP | Alan E. Ramos
    There is no limit. However, the amount that you can exempt is limited. If you are in California, and you use the CCP 703 exemptions, you can exempt a maximum of $25,340.00 (assuming that you do not use your Wildcard exemption for anything else). If you use CCP 704 exemptions, none of your cash will be exempt and you will need to develop a strategy to protect the value of your cash (you should consult an attorney to do this).
    Answer Applies to: California
    Replied: 12/22/2014
    GARCIA & GONZALES, P.C. | Richard N. Gonzales
    I typically tell my clients to keep around $25 in their account on the date of filing. There is no limit per se.
    Answer Applies to: Colorado
    Replied: 12/22/2014
    A Fresh Start
    A Fresh Start | Dorothy G Bunce
    There is no limit to the amount of cash you can have in your bank account to be able to file a chapter 7 bankruptcy. There is a limit to the amount of cash you can have IN TOTAL before you have to forfeit some of that cash to your creditors. State laws called exemptions are available to protect whatever cash you have, and you must claim these laws in order to use them. You can keep 75% of cash attributable to your wages, and up to $1,000 per person filing ($2,000 for husband and wife filing together) in addition to the 75%, unless you have used this exemption for something else. Any property not claimed as exempt is subject to be seized and forfeited to the Trustee for the benefit of your unsecured creditors.
    Answer Applies to: Nevada
    Replied: 12/22/2014
    Janet A. Lawson Bankruptcy Attorney
    Janet A. Lawson Bankruptcy Attorney | Janet Lawson
    That varies by state and has a lot to do with what your other assets are. You need to consult with local counsel.
    Answer Applies to: California
    Replied: 12/22/2014
    Davis Law SC | D. Nathan Davis
    The amount of cash you can have at the time of filing depends on other exemptions. It is possible to exempt more than 10,000.00, but, you have to have the correct combination of other assets. You should meet with an attorney and bring a list of all of your assets to that meeting. The attorney can then go over your assets and advise you if filing a bankruptcy will cause you to lose some asset.
    Answer Applies to: South Carolina
    Replied: 12/22/2014
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