Cash in Bank
January 21st, 2011 by Questions
Very informative website. My question is regarding the cash in hand or bank account on the day of filing bankruptcy. Does all this money goes to estate or there\’s some cash that I can keep in account or in hand or day to day expanses. What amount is reasonable for a debt of approximately $70,000.
Posted from: British Columbia
One Response to “Cash in Bank”
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January 22, 2011 at 5:28 am, A licensed trustee said:
The law requires your trustee to seize any excess funds held in the bank when you file. The rule seems to be you can keep enough for the next couple of weeks living expenses, but no nest egg or savings. So, if you have $1,000 in the bank because you have to pay the rent next week it won’t be touched. If you have $2,000 andf the rentnis only $1,000 you’ll likely lose the extra $1,000.
You’ll have to speak to whatever trustee you decide to use BEFORE you file to determine what a “fair” number is.