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Ask Maverick Your Own Question
Maverick
Maverick, Attorney
Category: Bankruptcy Law
Satisfied Customers: 6385
Experience:  20 years of professional experience
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We have never been bankrupt before and have always paid our

Customer Question

We have never been bankrupt before and have always paid our bills. I just want to be able to do the best thing for us. My husband is 64 and will be unemployed. He is very ill with a weak heart and congestive heart failure.   I am 64 and am employed as a teacher.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Maverick replied 7 years ago.
What assets and liabilities do you have.
Customer: replied 7 years ago.
The only assets at this time that we have is the business property which is being foreclosed on, our personal homestead and we have a rental house which is contiguous with our property. Each adult with a driver's license has a car. The only other thing I have right now is $7000. in my checking account and about $1500. cash on hand. I would like to know if I can just take the cash out of my checking account or do I have to have receipts to show that I spent it on necessities, such as a washer and dryer that I need since my set is very old.
Expert:  Maverick replied 7 years ago.

In Texas you can opt for the Texas exemptions or the federal exemptions. The business property that is being foreclosed on is probably a security for the loan and thus will revert back to the lender.

 

It appears that you already know what is exempt under the Texas state exemptions. As you know the cash in a bank account is not exempt. The problem is that converting the cash, which is non-exempt, to exempt assets is considered a fraudulent transfer or conveyance and thus can be challenged by the creditor if it is done in close proximity to the filing of the BK (usually that time from can range anywhere from 90 days to 2 yrs before the BK, depending on waht laws apply) ;

 

However, between now and the time until they actually try to garnish your bank account, you could use that cash for day to day living expenses and if your washer and dryer have not been replaced in a long time, you may be ab;e to argue that it was a basic neccessity. I would keep receipts. JUst be careful as to not go overboard b/c if it appears that you were trying to evade your creditors, the court could deny you the right to a BK.