QUESTION
How will our savings be treated if I file for a chapter 13 bankruptcy?
Asked on Sep 27th, 2011 on Bankruptcy - Georgia
More details to this question:
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?
9 ANSWERS
judith runyon
It depends on the amount and everything else you have. Talk to a bankruptcy attorney.
Answered on Jun 19th, 2013 at 8:48 PM
You generally cannot keep a savings in Chapter 13 since all of our disposable income is to be paid to creditors.
Answered on Sep 30th, 2011 at 7:44 PM
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.
Answered on Sep 29th, 2011 at 12:10 PM
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.
Answered on Sep 29th, 2011 at 11:56 AM
Daniel James 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.
Answered on Sep 29th, 2011 at 11:47 AM
Bankruptcy & Debt Attorney serving Longmont, CO
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William Edward Zurinskas
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In a chapter 13 bankruptcy, your savings will not be taken from you as long as you reconcile it in the chapter 13 plan.
Answered on Sep 29th, 2011 at 11:06 AM
Bankruptcy Attorney serving Hayward, CA
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Carballo Law Offices
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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.
Answered on Sep 29th, 2011 at 10:27 AM
Bankruptcy Attorney serving Concord, CA
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William Rubendall Attorney at Law
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Savings can be claimed exempt under section CCP 703.140. Consult an attorney for specific limitations.
Answered on Sep 29th, 2011 at 10:17 AM
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.
Answered on Sep 29th, 2011 at 9:27 AM