Can someone tell me what the Federal Exemptions are for maximum cash on hand and the maximum amount of cash I am allowed

Asked 11 months ago - Cheyenne, WY

to have in the bank when I file a Chapter 7 bankruptcy? Thanks very much.

Attorney answers (4)

  1. Barbara Lee Franklin

    Contributor Level 9

    4

    Lawyers agree

    Answered . It depends on whether you are using any of the homestead exemption. If you are not using the homestead exemption, the current federal exemption under the "wild card" or 11 U.S.C. 522 (d)(5) is $1,225 plus up to $11,500 of any unused amount of the homestead exemption. You may also have to use the wild card for any equity that you cannot exempt under the specific category, i.e., the vehicle exemption is $3,675, but if your vehicle is worth $11,500, you would have to use $7825 of the wild card to protect it from liquidation. Same goes for other categories of assets that are not unlimited. Also remember that household goods that have an individual value of over $575, such as an antique or a cello, have to use the wild card to protect the asset from liquidation. Remember undervaluing assets is almost as bad as not disclosing them at all and can subject you to criminal sanctions. You can purchase non-exempt assets prior to bankruptcy, but the old adage that "pigs get fed and hogs get slaughtered" applies when you convert non-exempt assets to exempt assets shortly before filing.

  2. Omar Mahmoud Badr

    Contributor Level 11

    3

    Lawyers agree

    Answered . Assuming that you are able to use all of your d(5) on cash, meaning you do not need to exempt any other property using it, and you can claim the full amount of d(5) that remains after you have used your d(1), the amount is roughly $12,000 at this point.

  3. Christine B. Adams

    Pro

    Contributor Level 20

    3

    Lawyers agree

    Answered . I put a link below for you. How much cash you have will depend on your other personal property.

  4. Michael Glynn Busby Jr.

    Pro

    Contributor Level 19

    3

    Lawyers agree

    Answered . 522 (d) 5 wildcard, but one would need to look at all your property

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