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Ask WALLSTREETESQ Your Own Question
Category: Bankruptcy Law
Satisfied Customers: 17080
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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I have $10,000 life savings in a bank account and almost $100,000

Customer Question

I have $10,000 life savings in a bank account and almost $100,000 in unsecured debt that I will be looking into Chapter 13.   Can any of the creditors touch my life savings or put a lien on my savings?
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 7 years ago.
First, unless your income is more than the state average a chapter 7 is what you need to file as it will wipe out all of your debt.

In MASS the following are exempted:

The trustee may take some of the $10,000 to pay of creditors, you would have to tell him the money is going for rent, food, clothing and other exempt items.

Your home, if you don't have more than $500,000 in equity in the house (today's value less costs of sale less payoff balances on all liens and mortgages)
Your car, if you don't have more than $750 in equity in the vehicle (today's value less costs of sale less payoff balances on all liens and mortgages)
Necessary clothing, beds and bedding, one heating unit for warming your home and $75 per month to pay utility bills
Household furniture, up to $3,000 in value
Bibles, school books and family library, up to $200 in value
Two cows, 12 sheep, two swine and four tons of hay
Tools of your trade, up to $500 in value
Materials and stock of your trade, up to $500 in value
Food, other necessary consumables or cash for such provisions, up to $300 in value
Burial plots, tombs and one church pew
Boats, fishing tackle and nets of a fisherman if they are actually used in his/her business, up to $500 in value
Uniform of an officer or soldier in the militia and the arms and accoutrements required by law to be kept by him/her
One sewing machine, up to $200 in value
Share in cooperative associations, up to $100 in total value
$200 per month for rent, if you don't claim a homestead exemption
Cash, bank accounts and wages for each pay period, up to $125 total
Trust company, bank or credit union deposits to $500
ERISA-qualified pension benefits
Private retirement benefits
Public employees' and savings bank employees' pensions
Disability benefits, up to $400 per week
Fraternal benefit society benefits
Group annuity policy or proceeds
Medical malpractice self-insurance
Group life insurance policy
Life or endowment policy, proceeds or cash value
Exempt life insurance annuity contracts
Life insurance proceeds if a clause in the policy prohibits the proceeds from being used to pay the beneficiary's creditors
AFDC, aid to the aged and/or disabled, workers' compensation, unemployment compensation and veterans' benefits
Property of a business partnership
Customer: replied 7 years ago.

I make 6 figures but expenses far exceed my income... 2 mortgages - car loan , etc...

I rented my home and I am living with a friend who is on SS - so I am paying their mortgage as rent. How do they determine in chapter 13 what you pay to the trustee... I have about 100 a month is disposable income for my expenses, housing, medical, etc - so how could i possibly pay this money back under chapter 13..

Is there a sight that says what they can take away. I may go on the title of my friends home but if i file the homestead act will it protect the home - can we both have the homestead so my roommates creditors nor mine will be able to touch the condo that I will always pay as my first payment - and never miss.