Question Cash and exemptions

[Freshstart88]

Let me just preface this by- I know my lawyer is the best person to ask! I'm just trying to get a general idea as my meeting with her isn't for a whole month.

I will be filing a Chapter 7 no asset case in Michigan. Michigan is a state that allows you to use federal exemptions. I know there is a wildcard exemption that can be used. I don't have my of value to protect (maybe 2-3k worth of clothing/jewelry/a computer?). Can I use part of the wildcard exemption to exempt cash? I may have around 9k in my bank account when I officially file. Im just curious if I will lose all this or if some will be able to be saved.

Also what are things that I am allowed to spend money on until I file? I know nothing frivolous, but can I pay any extra towards rent, or buy some household goods like food and toiletries?

Thanks!

[justbroke]

If you have no home, why not just use the Federal Exemptions (11 USC 522). Would probably cover everything that you need to cover.

Other than that, I can't specifically tell you which one to use or which exemption to apply. I never want to be accused of destroying someone's life by telling them what to choose or use when it comes to exemptions.

[Freshstart88]

justbroke Thank you! I have another question. I will be getting student loan residual money (a deposit into my account after my tuition is paid, usually its around $2-3k). If this money comes in before filing, will this be automatically exempt or will that also fall into the category of just excess cash in the bank account that I will need to see if I can exempt?

[justbroke]

I believe it's "just excess cash." But if you have enough exemptions to cover it, you could schedule it and use an exemption to protect it. I think that is what some attorneys may list it and then mark the "property" as contingent, name it something like "Anticipated Student Loan Proceeds" and set the value at what is expected. That's all anecdotal and I'm sure different attorneys handle it differently.