Money in the Bank

[BearChaser303]

Just curious about this.. If I have money in the bank on the day I file, and it is 75% exempt then I understand the trustee can take 25%. How does this money then get distributed?

For sake of conversation, lets say I have $4000 in the bank which means the trustee could take $1000. I have 10 creditors, do they each get $100 or is it divided up based on how much I owe each creditor?

[magyar123]

ON the day that you file no money will be taken.

[BearChaser303]

Yes I know that. But what the trustee takes is based on what I had in the bank on the day I file. Just curious how the trustee then decides who gets what.

[lrprn]

Just curious how the trustee then decides who gets what.

Depends on how much of your assets, cash, etc you can protect with your exemptions. The trustee can't just take something because he/she wants it or thinks you don't deserve to have it. There has to be a reason that is within the law.

[BearChaser303]

I know what I'm trying to ask, but dont think I am saying it right... I already know the money in the bank is 75% exempt. I am just curious that if/when the trustee takes the 25% non-exempt funds, how does he/she then determine which creditors get what amount? I probably shouldnt even care, I am just curious more than anything else.

[FreshLikeADaisy]

I know what I'm trying to ask, but dont think I am saying it right... I already know the money in the bank is 75% exempt. I am just curious that if/when the trustee takes the 25% non-exempt funds, how does he/she then determine which creditors get what amount? I probably shouldnt even care, I am just curious more than anything else.

Well, if nothing else, you can be certain that if any assets are available, the trustee and administration costs will get paid first...

It may be that you have enough of a "wildcard" exemption left over from somewhere else to cover the remaining 25% and none of it will get taken.