exemptions

[ashbylk]

We are still waiting to file chapter 7. I paid the attorney 3 months ago and now my class is going to have to be retaken.
Anyway, while I wait to file I have a question about expemtions. First, can the bankruptcy court take my little girl's savings account money? She has about $7,000 in there.
Also, can the bankruptcy court take my student loan refund check? This is not considered income, but will be deposited into my band account.
This is all in the state of Florida

[justbroke]

We are still waiting to file chapter 7. I paid the attorney 3 months ago and now my class is going to have to be retaken.
Anyway, while I wait to file I have a question about expemtions. First, can the bankruptcy court take my little girl's savings account money? She has about $7,000 in there.

If the account is in the girl's name and you're a custodian, then it's not yours. You would, however, list in on your Statement of Financial Affairs as property held for others.

Also, can the bankruptcy court take my student loan refund check? This is not considered income, but will be deposited into my band account.

How it is not considered income? Do you mean for purposes of taxation? Taxation is irrelevant in the bankruptcy context. If you paid $7K for classes, then received a $7K refund, you have $7K in money sitting in a bank account somewhere. No matter how you slice it, whether treating it as income, or treating it as "property", the $7K is still there and exposed. Unless you can exempt it (which Florida has pitiful exemptions except for a homestead), you are probably going to be giving up some if not all of the $7K.

(It's difficult to really show what I mean, but say you have $7K in the bank. You use it to pay for your education, and now have $0 in the bank. Then you receive your refund of the $7K and put it back in the bank. Your position, the $7K non-exempt money... is now back. In the end, you still have $7K in the bank, just as you had before using your own funds.)

You could use part of that refund to pay your attorney, stock up on food, get some medical care done, etc. As always, I would reach out to several attorneys and get initial consultations. Make sure you bring up this $7K as well and see what they say.

[ashbylk]

what if I put my student loan refund in my daughter's savings account? can they take it?

[justbroke]

what if I put my student loan refund in my daughter's savings account? can they take it?

That would be fraud. I have nothing else to say about that.

(Please know and understand that Panel Trustees are smart and have seen every gimmick to attempt to hide property (money, assets). Additionally, understand that even though you're a custodian for your child's account, the Trustee may still ask you to prove where the funds came from. Specifically, they are looking to see if your "stuffed" the account before filing... in order to hinder, hide or defraud creditors.)

[ashbylk]

I had a feeling that would be the case.

[ecsclb1724]

what will you be using the 7K on? I'm assuming living expenses while you're in school right? Prepay for the things that you would normally use that 7K on, and keep the receipts because undoubtedly the the trustee will ask about it.

[ashbylk]

Actually, I am sure we are gong to lose our home so I was going to use it to rent another home. I am sure they will want first and last and the cost of a rental truck plus deposits. I will be in the streets if they take it.

[ecsclb1724]

when will you be filing and when is the loan refund check anticipated?

[ashbylk]

I am trying to file asap and I have already paid the attorney. the refund check should arrive in a week or so.

[ecsclb1724]

this would be a question for your attorney or someone more versed but I'm wondering if you file BEFORE you receive the check if you'd have to list it on your schedules?