Based on the wording of the federal exemptions, UE in check form OR in a bank account with clear evidence that it is UE should be exempt. Unclear would be if you deposit it into an account where you also deposit funds from other sources. As always confirm with an atty. Just perhaps not your own?
About the home equity loans - look at it from a creditor's view... If they freeze your accounts, they can use the right of setoff to hold onto the funds in your checking/savings as of time of filing. They can eventually apply that toward the unsecured debt which will otherwise not be repaid. They have other leverage regarding the mortgage accounts. If you don't work out some way to pay the mortgages, your home may be on the line. So it falls on you to work it out, not them.
About the home equity loans - look at it from a creditor's view... If they freeze your accounts, they can use the right of setoff to hold onto the funds in your checking/savings as of time of filing. They can eventually apply that toward the unsecured debt which will otherwise not be repaid. They have other leverage regarding the mortgage accounts. If you don't work out some way to pay the mortgages, your home may be on the line. So it falls on you to work it out, not them.
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