Exemptions HELP

[drowningNdebt]

Ok here is my guru. I have a total of $4,000 exemptions here in FL. I will have $150 cash in checking, $15 in savings, $0 equity in car (financed and 100% loan to value), and $1,300 in personal property. However, I had an issue and the after I complete my probabtion I will get $2,500 back too. This will be 5 months after I'm discharged. My concern is,my brother paid cash to the court so all documents are in his name. However, I paypaled him the money back right after the situation which occured 8 months ago. However, I advised my attorney of this and he said not to include it because it's his money. However, I paid him back therefor when he goes to get the money he will pay me back. Will this be exempted too? That would make my total exemptions about $3850 and FL allows $4000 if your not a home owner which I'm not.

[justbroke]

First, you actually get $5,000 in Florida as a non-homeowner. That's $4,000 for F.S. 222.25(4) (the unused homestead exemption), and $1,000 for Article X, Section 4 of the Florida State Constitution.

In the general scheme of things, I think that you would just exempt it under F.S. 222.25(4) just as you would any other cash. Specifically, I might be inclined to include the "Pre-Trial Probation Bond" as exempt on Schedule F and claim F.S. 222.25(4) as the authority for you to claim such. It's your property... and plus... it is payable (I believe) on your successful completion of the probation period. So at best, it's contingent. Okay, so that addresses the anticipated return of the money...

The interesting part, is whether this is really a true insider preferential payment. It's an insider payment regardless of whether you exempt the refund. (I would still exempt the contingent refund).

Worse case, they go after your brother for the amount you paid him. They (the Trustee) would still need prove that you were insolvent at the time you paid your brother.

Just my quick read... (interesting case too!)

[drowningNdebt]

Thanks for the reply. Yes, you are correct the payment that it is contingent on successful completion of PTI. Also, at the time I paid him back I was paying all my other bills. I never thought I would go BK. It wasn't until 3 months later I ran into problems and knew I might have troubles. I'm going to try and expalin this further in debth to my attorney. I surely want to disclose everything.