Hi - my name is XXXXX XXXXX X'X a Bankruptcy attorney here to assist you.
Unemployment income cannot be touched by the Bankruptcy trustee for 2 reasons.
One is that Unemployment income is absolutely exempt (protected) from the Bankruptcy court.
The second reason is with a few non-relevant exceptions (eg. inheritances), the Bankruptcy court cannot take any money the Bankruptcy filer receives after a Bankruptcy is filed.
As the Bankruptcy court can only take money the debtor has at the time a Bankruptcy is filed.
(So even if Unemployment income was not exempt (which it is), the Bankruptcy court still could not take that income.
So would it be OK to continue my unemployment auto deposited after I file, but I should withdraw all funds out of my account before I file...even if those funds were from unemployment income?
1) Yes - it would be okay to continue to have your Unemployment directly deposited.
2) You do not have to take the money out of the account as the Bankruptcy court cannot take any money from a bank account if that money is from Unemployment.
Could the bank take that money if owe them money a credit card?
Did you already file a Bankruptcy?
Sorry...[retyped] Could the bank take that money if I owe them money a credit card I have with them?
Also, is all the money in that account from Unemployment?
I'm expected to file next week.
Yes...all from unemployment.
Once you file a Bankruptcy, the bank cannot touch that money regardless of whether or not all the money is from UI.
But before you file, you cannot assume the bank knows all the money is from UI.
OK..thank you! I'll probably withdraw it anyway...just to be safe LOL.
It would be a good idea to inform the bank in person and in writing ( so you have proof) that they shhould not touch the account since all the money is from UI.
Under the circumstances, that would be a good idea.
Thanks for the information...much appreciated!
And please have a pleasant evening!
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