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Ask Ellen Your Own Question
Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I currently have $20,000 in savings and checking account.

Resolved Question:

I currently have $20,000 in savings and checking account. I owe $80,000 in credit card. When I file the chapter 7 no-asset bankruptcy - I do qualify - how much of the $20,000 will be exempt? I'm in Texas.

If none of it is exempt, I'll be truely penniless after bankruptcy.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

Thank you for your question. I am happy to assist you.

I am a lawyer with 25 years experience. While I am permitted to provide you with legal information, I am prohibited by and various state bar associations from giving legal advice, representing you or entering into an attorney-client relationship through this open and nonconfidential forum.

There is no exemption for cash on hand. That said, Texas has many exemptions that you may want to review. You may be able to convert some of your cash on hand to an exempt asset with the assistance of skilled bankruptcy counsel:

Here are the exemptions for Texas:

Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.

Customer: replied 6 years ago.
Since there are no exemptions for cash, does that mean ALL the cash I have available when I file (whatever that amount will be) comes under the control of the bankruptcy trustee?
Expert:  Ellen replied 6 years ago.
Unfortunately that is exactly what it means
Customer: replied 6 years ago.

Ok. One final question:


Would the bankruptecy trustee still take this cash if he knew the debtor was without employment or savings?

Expert:  Ellen replied 6 years ago.
Without a doubt the trustee will take the money. The trustee is paid on a percentage of money collected and has a fiduciary duty to collect the money for the creditors
Customer: replied 6 years ago.
Oh my goodness!! I didn't know THAT bit of revealing information.
Expert:  Ellen replied 6 years ago.
Sorry to give you the bad news.
Ellen and other Bankruptcy Law Specialists are ready to help you