How much cash can I have before I file Ch. 13?

[NeedOptions]

My wife and I are current on all our debts. We have decided to file for BK 13 and will not pay any more credit cards. Our minimum payment on all our credit card debt is close to $4500/month. Let's say we don't file for BK13 until 6 months later and I have over $20k cash because I did not pay the credit cards. Will I have to claim that as part of my filing? I live in CA so does anyone know how much cash can be exempt when I file for ch 13? Thanks.

[lrprn]

Will I have to claim that as part of my filing?

Yes, any cash you have on hand when you file will be a part of your bankruptcy filing. What most bk lawyers will say is to use the extra cash to buy necessities (clothes, car repairs, etc) until you get your cash down to whatever is allowed in CA.

I live in CA so does anyone know how much cash can be exempt when I file for ch 13? Thanks.

California is the only state that has two 'systems' of bankruptcy exemptions. You have to pick all of one system or all of the other system - you can't mix the two. The amount of cash you can have on hand on filing day depends on which bk system your lawyer suggests is best for you to use.

See http://www.bankruptcyaction.com/caexemptions.htm for a description of both CA bk exemption systems.

[momofthree]

I *believe* that you can use the wildcard to exempt cash. Double check with your attorney though. We didn't have a bunch of cash on hand, so I can't speak from experience. We did have about $12k left over from the wildcard though that our attorney listed on schedule C (exempted items) as "earnings and 2010 tax refund."

[NeedOptions]

I will definitely check tomorrow. Thanks.