We just recently filed for chpt 13 and some of the expenses incurred such as medical and auto/home repairs are not consistant ones. Obviously these are things that one has to save money and be prepared for. I was curious if there was a limit to the amount you can have in savings before the trustee could require you to either increase your payment plan or simply require you to pay a one time sum?
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Solid question. If I recall, I had $2600 in checking and maybe $900 or so in savings and it was never mentioned as good, bad or indifferent. -
In a chapter 13, cash in bank account is not much of an issue.
Here is the thing, cash in savings is an asset. And as with any asset, it is either exempt or non exempt (or a portion is, and a portion isn't). If the savings is non-exempt, you CAN keep it in your account, BUT, you will need to pay the equivalent amount of money through your chapter 13 plan with your disposable income.
For example, if you have $10,000 in savings, and let's assume its all non-exempt; then over the life of your chapter 13 plan, you will need to pay at least $10,000.Comment
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Thank you for the info and that defintiely helps for where we are right now (awaiting our meeting of creditors). I still am curious however if there is anything to be concerned with in regards to the savings account after the plan is confirmed since it is considered an asset. It may not be an issue, but we are hoping to save as much as we possibly can to prepare ourselves for the unexpected. There won't be much left to work with, but I would hate to lose whatever we did save in the event that this was something the trustee would monitor and be concerned with up to a certain point.Comment
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Once you are confirmed, if you can save money, no one is going to care (normally).Comment
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