Can you have money in savings?

[cocker1]

What is the name of your state? PA

We are considering filing Chapter 7 bankruptcy for relief from overwhelming debt due to a prior divorce and health problems. We have recently received a small inheritance (check's not even cashed yet) and would like to know if that money will be affected or taken if we file to relieve ourselves of all these bills. The debts are almost $100,00; the inheritance is $12,000. We were hoping to use that money to pay down the few bills we cannot include in our filing.

 

[spoiler]

if this money can not be claimed as exempt then they will want it. any payments of $600 or more will be questioned and they could ask for the money back. Talk to a lawyer, they will know what the trustees will want to go after...and they will also tell you what would be okay to spend it on if you can.

 

[chris7]

This is where a lawyer or a good bankruptcy book would be helpful. According to my NOLO book, in PA you have the option of using the federal bankruptcy exemptions. Where this would help would be if you did not have much equity in a home you could use part of the exemption as a wild card exemption. Basically, the home exemption is $18450, but an unused portion of that exemption, up to $9250 can be applied to any property. Plus theres an additional $975 wildcard exemption. So...If you do not own a home and do not have much personal property, you could keep about $10,000 in cash. Talk to a lawyer or do the research! This is only what I learned from a book.

 

[Ladynred]

When you say you would pay bills that 'can't be included' in the bankruptcy, EXACTLY what kinds of bills are you talking about ???