Too Much Exempt Cash for Chapter 7?

[dabusted]

This question occurred to me after reading the post by debt09 a couple of threads down. Is it possible to have too much cash on hand and be forced into a 13 even though all the cash is exempt?

Summary of situation: Plan to file a no asset 7 on Monday. My wife just got a student loan refund check of $8000 last week and I get paid about $1400 this Friday. Between cash and funds in our bank accounts we will have about $7500. All of this money is exempt under the federal provisions. We pass the means test (by $54) and our monthly income/expenses come to -$102. [Our actual monthly deficits have been running more like $500 which is why she takes out so much in student loans in the first place.] $480,000 in debt--$305,000 in student loans and $175,000 in other unsecured debt, although the "real" amount of other debt is significantly less due to the multiplier effect of banks selling and reselling the obligations.

Could $7500 in liquid assets be enough to either get the UST real interested and demanding a bunch of documents or even recommending conversion to 13?

Any thoughts would be appreciated. Has anyone else been in a similar situation?

Thanks, dabusted

[nervousss]

I'm not sure exactly, but I think that it would have to be a consistent excess to force you into a 13. You need to have all of that money spent or protected by the time you file.

edit: You should probably bring the documents with you no matter what, just in case. Bring more information than needed, give what they ask for, go home happy.

[TEW]

cash on hand is not going to force you into a 13. It maybe an asset if you don't find a home for it or can exempt it before you file.

[mintz]

It will depend on what state you live in and how much in assets you can own. You could always open an IRA