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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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What are some methods to hide or protect cash money from being

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What are some methods to hide or protect cash money from being seized when filing a Chapter 7 bankruptcy?
is the money in a bank account now? when do you plan on filing?
Customer: replied 6 years ago.

Hi. Thanks so much for looking into this for me. I have never used this website/service before, and am willing to increase the amount I am paying for your services. I truely appreciate it.


Yes..the cash I am describing is in bank accounts (savings & checking) right now. Also, I have savings bonds in my & my kids names. Are these protected or are they subject to siezure? I am thinking I should cash them out and turn them into cash money....yes?


Additionally, my kids have savings accounts, with my names on their accounts also. The bankruptcy is due to an incrediblly messy divorce. I plan on filing within a month, maybe 2 months at the max.

Cashing out the accounts would not help if you file in a month, I would wait 6 months if the amount is over 25,000 as in DE, you can keep that much without having it taken. The savings bonds for your children will be protected if in your childrens name. You could put the money into an IRA or college savings plan for the children. But I would delay the filing for 6 months or more if over 25,000.

Up to $25,000 total in personal property and/or equity in real property, other than the debtor's principal residence
Del. Code Ann. tit. 10, § 4914 (b)

Customer: replied 6 years ago.

Regarding the amount of cash in my savings/checking account, if I have $40k in a savings account, and $30k in a checking account, are you saying that only $5k would be subject to siezure in the checking, and $10k is subject to siezure in the other words, is the $25k the MAX allowable cash I'm able to keep, or is that per account? Silly question...I'd bet it's only $25k MAX I'm allowed to keep...yes?


You said cashing out the accounts would not help protect the money in them. Why, because it's "so recent"? If the money is not there, it's not there. What is significant about the 6 month time period? That $ may be spent on a trip to Mexico or buying losing lottery tickets, etc. In other words, that cash disappears without having anything matieral to show for it.


The some savings bonds are ONLY in my child's name. Others, I believe, have both our names on the bond. Are the bonds that have both our names on them subject to siezure?


Last, but certainly not least, would you recommend that I open a savings account for my oldest child (13 years old), and transfer/depost all this $ in his account, to protect it from being seized? I don't know if there's a minimum age a child can open a savings account w/o a parent/guardian's signature/custodial rights/etc?


Thank you so much.

$25,000 all together, you should deposit the accounts into the childrens name, regardless of the type, also the reason I state 6 months is that the court and trustee may want to see your last six month bank accounts to see how much you had in the account. The courts with the department of justice will investigate to see if you were trying to hide assets prior to the filing so it is imperative you file later.
Customer: replied 6 years ago.

Swift and comprehensive advice. Thank you so much for your time.


To conclude, can you recommend a website or even lawyer who can guide me through this stormy and turbulent weather ahead?

i would advise you to contact the DE bar association for an experienced bankruptcy attorney, as soon as possible so he can advise you about saving your assets, it can be done but must be carefully planned.
WALLSTREETESQ and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

Thank you very very much for your time.


Also....please note, that because of your performance, I have decided to sign up for your service on a recurring, monthly basis.


In the meantime, I will seek advice through the DE bar association.


Thank you again.

Customer: replied 6 years ago.

How does a vehicle/automobile (that is 100% paid for in full) play into the $25k equation? Would the blue book or kbb value etc included in the $25k limit the individual is allowed to keep...or is a primary means of transportation exempt from the $25k equation? Also, please keep in mind this car is 100% paid for and owned by me.

the blue book value would be used, and if worth 25,000 it would be taken and sold. The $15,000 exemption for vehicles is limited to transportation if used as a tool for your job, such as a trucker, not for transportation
Customer: replied 6 years ago.

My job does require a vehicle to perform my job, as in a travelling home health aide.


I do not work in a traditional work office, but rather--- drive to patients homes and assist doctors and nurses who basically perform housecalls.

then you can use the vehicle exemption, I would sell it and lease or finance a car, as those are protected, only $15,000 is protected, so they would still sell it.
Customer: replied 6 years ago.
Just to clarify, the kbb value is ~ $10k. Are you still suggesting I sell it and lease a vehicle who's value is less than $25k?
if the value is $10,000 you can keep it, under the exemption.
Customer: replied 6 years ago.
Got it. Back to savings bonds issues. Some bonds have written on them, my child's name OR my name (as owner of the bonds). Would bonds written like that be protected or because it's written as OR, it is subject to siezure?
the bonds should not be in your name, if they are they are part of your assets.

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