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cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8023
Experience:  Bankruptcy professor.
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i have filed my bk on my own without an attorney. i went to

Resolved Question:

i have filed my bk on my own without an attorney. i went to the creditor meeting, nothing out of the ordinary. A week later i get a certified letter from the trustee
demanding the amount of money i had in my bank accounts at the time of the filing in the amount of appx $2300. Can you tell me the exemption law i need to provide the court when i amend my schedule c for exempt property. i researched it and it seems that its "Nev. Rev. Stat. Ann. § 21.090 (z)". it reads to me that $1000 in deposit at a bank can be exempted. Can i double that exemption to $2000 since my wife and i filed together? I live in Nevada, Clark County, North Las Vegas
thanks for the response.
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  cfortunato replied 6 years ago.
Hi JACustomer,
You are allowed to exempt up to $1000 each ($2,000 total) of any property not covered by another available exemption, including the money in your bank account.
The correct statute is Nev. Rev. Stat. 21.090(1)(z). (You left out the (1), and it is not necessary to include "Ann.".)
Not sure if you know this, but when you file an Amended Schedule, you also have to file an Amended Summary of Schedules.

I think this is what you wanted to know. If not, please let me know.
Thank you!
cfortunato and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

thanks for the reply,

do i list each bank account separately and on the same line include the exemption law with the $1000 exemption value or can i lump all the accounts together and include the $2000 exemption. thanks

Expert:  cfortunato replied 6 years ago.
Thank you for accepting my answer!
You should list each account separately, and apply the necessary portion of the $2,000 exemption to each.
Customer: replied 6 years ago.
thank you!
Expert:  cfortunato replied 6 years ago.
You're welcome!
Customer: replied 6 years ago.

hello again,

i am worried that the trustee will freeze my bank account and i wont have access to my money. the appx $2300 i had at the time of filing is what she is asking for. i am revising the schedule to exempt the $2000 of it but what about the possibility of the trustee freezing all of the money? i have in one account $3800 and i have paychecks going in at $1800 on the 15th and the 30th. possibly a bonus as well this month. i dont want to have these funds frozen so i am thinking about pulling out as much as possible without bouncing any checks. $3800 - $1100 outstanding checks = 2700 withdrawal. is that ok to do? am i getting paranoid? i read that only the amount at filing is on hold but i would have access to the rest?? thanks for your reply

Expert:  cfortunato replied 6 years ago.
The Bankruptcy trustee cannot freeze your account, as there is no judgment involved. However, you are allowed to withdraw money from that account if doing so makes you feel better.
Customer: replied 6 years ago.

so they cant freeze it at all? the trustee told us the estate owns everything the moment we file. when you say judgment, meaning a lawsuit or ? no legal issues at this moment only the bk filing. no garnishments, no lawsuits, only creditors wanting their money.


Expert:  cfortunato replied 6 years ago.
It is true that the Bankruptcy estate consists of everything you own - minus the exemptions - at the time you file. However, it takes more than this fact to freeze a bank account - a court order or judgment is necessary to freeze a bank account. The trustee would be able to get a court order if you did not turn over money he asked for. But at that point, you would also have to go to court - the trustee could not get a court order without allowing you to protest the request for an order.
cfortunato and 2 other Bankruptcy Law Specialists are ready to help you
Customer: replied 6 years ago.

thank you so much,

so at this point i am revising my schedules to reflect the $2000 exemption and filing it this week. the trustee letter is demanding the $2300 by the 30th of Sep. When I file the amended schedule the trustee will send me a revised demand letter for the amount the exemption doesnt cover $300?? If I get a bonus this month which could be appx $5k will that present a problem or can i just let this amount get direct deposited or to be safe should i accept a live check instead and cash it? My interpretation is that the amount in the bank at time of filing is the only money that matters, not any amount going forward. Thank you!

Expert:  cfortunato replied 6 years ago.
The only way the bonus can present a problem is if your were entitled to it (if it was already earned) before you filed your Bankruptcy, even though the check arrives after your Bankruptcy is filed.
Customer: replied 6 years ago.
The bonus is earned on 9/15 due to the company being purchased. Its a retention bonus if i am employed on that date. Does the trustee send me a revised demand letter for the appx $300 i would owe after the $2k exemption? It seems im okay to continue direct deposits and the only risk is the $300 that may be on hold. So, if i have $5k in the bank the bank would put a freeze on the $300 and i would have access to the rest or the bank freezes the whole account?
Thank you!
Expert:  cfortunato replied 6 years ago.
After you file the amended Schedule C, and send a copy to the trustee, you should contact the trustee's office to make sure he has received the amended Schedule, and that he revokes the demand, and sends a revised one.
When banks freeze accounts, they place a hold on twice the amount of funds in dispute, which would be $600 in your case.
Customer: replied 6 years ago.
Any thoughts on getting live checks for payroll instead of direct deposit? Just trying to make sure i have access to my account. The drawback on live check is its mailed.
Expert:  cfortunato replied 6 years ago.
Having the check mailed just means it will take a few days longer for you to receive it.
The other possibility is to call the bank right before the check is due to be deposited to find out if any hold has been placed on your account. (By the way, many banks will not accept a deposit either if there is a hold on an account.) If there is no hold, you can allow the check to be direct-deposited, and then immediately withdraw the funds.
Customer: replied 6 years ago.
So, to recap all your great help. I will amend my sch c for the $2k exemption leaving appx $300 owed to the trustee. I contact the trustee as soon as i file the sch c and wait for a new demand letter of $300. I pay that amount by the due date. This would avoid a bank freeze of $600 if a judgement is okd by the court if i dont comply with the demand letter. I am trying to avoid some sneaky manuever by the trustee to freeze ALL my money. Should i be concerned about this?
Thank you!
Expert:  cfortunato replied 6 years ago.

You're welcome! And thank you for accepting my answer, and for the bonus!
Yes - what you described is the correct procedure. And no, you should not be concerned the trustee will be able to freeze your account, as there are more efficient ways to get the money he is entitled to - such as denying your discharge if you do not pay.
Customer: replied 6 years ago.

fantastic! thanks. i have a relative that is trying to deal with a credit report item and is looking to settle the debt for less the amount, can you help them? i will refer them to you if ok, thanks again!


Expert:  cfortunato replied 6 years ago.
Yes - they can ask for me.