Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.
I have a question about Chapter 13 bankruptcies. Suppose someone has $20,000 cash in the bank and wants to file a Chapter 13. There isn't a wildcard or cash exemption in Utah. As such, we could assume that filing a Chapter 13 would fail the "best interests of the creditors" test, correct? Response 1: That is correct, unfortunately. Can someone file a Chapter 13 and keep this cash? Response 2: No, it is not possible. The Chapter 13 Trustee would demand that the cash be turned over to him or her. Is there an exemption or plan that would allow the debtor to keep the cash and stay in a Chapter 13? Response 3: No, there is none.