Here's the situation- We're planning on filing soon and want to make sure our cash in bank is below the exemption limit. One of our accounts is in another state so we can't go and cash a check to buy money orders to pay bills. Our plan is to write a check on Monday to pay our rent from that account. Now it should clear within a week, but under the stuff happens doctrine, it might not. To further "complicate" matters, the money in this account is all SS which is exempt.
So here is the question:
Check written on exempt funds 2/1- we file 2/8 -check hasn't cleared so balance is showing on filing date but it is exempt. Check clears 2/10 (after we file). Is this a problem?
Or asked another way, can you spend exempted cash after filing? I have read and been told different answers by different attorneys. it seems to me that you should be able to from a common sense point of view but as we all know common sense is not always written into law.
So here is the question:
Check written on exempt funds 2/1- we file 2/8 -check hasn't cleared so balance is showing on filing date but it is exempt. Check clears 2/10 (after we file). Is this a problem?
Or asked another way, can you spend exempted cash after filing? I have read and been told different answers by different attorneys. it seems to me that you should be able to from a common sense point of view but as we all know common sense is not always written into law.
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