How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
Type Your Bankruptcy Law Question Here...
Terry L. is online now
A new question is answered every 9 seconds

I Filed for Chapter 7 Bankruptcy in Augusst of 2012. Prior

This answer was rated:

I Filed for Chapter 7 Bankruptcy in Augusst of 2012. Prior to my hearing I was told not to deposit and dollars in to my cheching. At the hearing the Trustee questioned a some
of $3481.95 in my account. He requested That that amount be paid to a creditor.
The reason this amount in my accout is $2199.00 was Fed Tax Return Direct deposit
And $1479.00 Social Security payment also direct deposit. What I did with these $ was to pay house bills, to keep our accounts up o date.
Question Can they take my Social security money as ment to debtors.
As of yesterday 6th 2012 I did mail tje check for $3481.95. This money was borrowed from a Life Ins. policey. Reason for bankruptcy was borrow money to a small 17 yr. bussiness aflot. thank you

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.


Terry L. :

Any money in the bank account at the date of filing is an asset of the bankruptcy estate. If you have available exemptions, you can exempt a portion of this to protect it. If not, the trustee can use it to pay your creditors in the bankruptcy case.


Terry L. :

You should review the available exemptions in bankruptcy, and perhaps your attorney can file an amended Schedule C to protect some of the cash. It doesn't matter where the cash came from, if it's in the account when you file, it's subject to liquidation if it isn't exempt.

Terry L. :

If the trustee permits an amended exemption, they may return that portion.


Terry L. :

do you have any questions?



No more Questions u answered my question thank you

Terry L. and other Bankruptcy Law Specialists are ready to help you

Related Bankruptcy Law Questions