Chapt 13 and savings

[t160out]

What happens to the cash in your savings/checking account prior to filing Ch13? do they just clean you out or is there some allowable amounts under 13? I see its like $125 in ch7, is that also the case in 13?

[HHM]

Ideally, you don't want a lot of cash in your bank account in a 13, and its disposition somewhat depends on how your state deals with money in your bank account (i.e. if the money is directly traceable to wages, sometimes the wage garnishment exemption applies).

Basically, there is a risk that the trustee could clean it out. However, you are generally allowed to keep assets in a 13 so long as your chapter 13 plan can afford to pay the value of non-exempt assets, like cash.

[justbroke]

What happens to the cash in your savings/checking account prior to filing Ch13? do they just clean you out or is there some allowable amounts under 13? I see its like $125 in ch7, is that also the case in 13?

If you have any luck... you're balance in your checking and savings account should be negative on the day you file.

The key is how much of it would be exempt. Also, if you have unsecured credit from the same Bank, they make seek to "set off" what you owe. For example, when I filed, my Bank immediately closed my line of credit, and took that money from my checking account... then froze my checking account.

[t160out]

My issue is that I get paid monthly and its direct deposit. When I finally stop paying the CCs (probably jan/feb) then I'm going to have a lot in there at times before paying mortgage, etc. using the Nolo online means test my disposable comes out to anywhere from 1700-2000/mo, which puts me in the 60/70% payback scale, so i don't want to have it look like I'm commiting fraud, but I also want to start preparing for cash-only by saving something, albeit as long as it doesn't get simply taken.

I used my latest pay stubs, actual numbers and didn't take anything that wasn't legitimate. Most of the exemptions was basically the mortgage, childcare, and IRS exemptions, so I'm hoping that its accurate...

[rrockinggramma]

perhaps just before you file as as you get ready to file you could pay ahead on a few things. Stock up on food and necessities, pay ahead on your mortgage etc to keep the balance reasonable.