Question on bank accounts

[MikeS]

My wife and I have an appointment in 2 weeks to see a local attorney. My question, after reading many of the threads and documents on here is this: with tax refunds coming (including the stimulus checks that go out in May) as well as a $5,000 CD we currently have, what if anything can I do to ensure this money isnt lost in this process? Is it as simple as pulling it out and waiting a certain period of time? Any help someone can provide would be appreciated.

[ameliabedilia]

If you pull it out, the lookback period and period that you have to provide bank statements is usually 6 months, unless you get audited, then I think it's about 2 years.
Depending on your state, you can exempt the cd or tax return. I guess it depends on how much you get on your taxes to know if you will have enough room for exemptions.
You could get your tax return and spend it on lots of necessary items and just keep your reciepts.
I have to go, but I know more people will chime in or tell you if I gave you wrong information. This is the best board- in any category!

[lrprn]

Whether the CD, your tax refund, and the "rebate" loan from the govt can be protected or not depends on three things - when you file, the bankruptcy exemptions in your state, and the customs and practices of your local bankruptcy trustees and judges.

You need legal advice from experienced bk lawyers in your area who have a handle on what's possible in your unique financial situation. Make 3-4 appointments for free or low-cose initial consultations with different lawyers in your area. You will learn a ton and have a good idea of what you will be able to protect and what you can't.

[PaKettle]

My wife and I have an appointment in 2 weeks to see a local attorney. My question, after reading many of the threads and documents on here is this: with tax refunds coming (including the stimulus checks that go out in May) as well as a $5,000 CD we currently have, what if anything can I do to ensure this money isnt lost in this process? Is it as simple as pulling it out and waiting a certain period of time? Any help someone can provide would be appreciated.

Talk to some attorneys - they usually give free consultations.
Try www.nacba.com for one...

Meanwhile google "Bankruptcy exemptions for [your state]" and see if you have some exemptions you can use to keep the money.

For example, in CA if you don't have a house you can use the Homestead Exemption to exempt up to around $20k in assets.

Good luck!