How much money can you have in your bank account at the beginning of a bankruptcy?
I need to declare bankruptcy. It is the only way to get past where I am. I need to know – if I have $2000 in my bank account (which I see as money to pay for the cost of bankruptcy) will it be used for that purpose or will it be seized to pay debtors…and leave me still owing the $2000 bankruptcy fee. How much money can you have in your bank account at the beginning of a bankruptcy – obviously I need to pay my rent etc….so am I allowed the equivalent of the monthly amount I am allowed – which as an individual is about $2000 (per month) or does my bank account need to be at zero…and if so how do I pay my living expenses. Additionally, I am on EI and receive CPP which do not put me over the allowable $2000…seeing as EI and CPP is within my allowable income will it still be paid to me? It is my only means of support.
Posted from: British Columbia
Answer:
Although cash is not an exempt asset and would be included in “property” as at the date of bankruptcy, there are some practicalities that need to be considered. If a person were to file for bankruptcy on their payday, it would not be reasonable or practical to ask for any cash in their account to be handed over to the trustee. While practice may vary somewhat between trustees, I would expect most trustees would only seek the payment of any “surplus” cash, over and above what would normally be expected to get the bankrupt to his or her next payday.