Cash In Bank Exempted In Illinois?

[ryan]

In reading about Illinois BK laws it appears that the debtor can have up to $4000 in cash in bank and use his wild card exemption to cover that..
Then there is separate exemption amount for a car ($2400) and tools of trade of about ($1500).....

Can I assume that any cash in bank over the $4000 will be automatically given to creditors?

Is there any legal way, if you have more cash to preserve it (or spend it)?

...and how is all this verified by the BK trustee?

[justbroke]

Can I assume that any cash in bank over the $4000 will be automatically given to creditors?

Yes, you can. There is no legal way unless there is an exemption, or you work by and through an attorney who specializes asset protection for your specific State. I can't speculate on where you can put money. In Florida, we can put money into our homestead, since we have an unlimited homestead exemption. I don't know what or even if you have those types of "pre-bankruptcy" planning tools in Illinois.

You can also spend the cash on reasonable and necessary things for the health or welfare of you or your dependents. Necessary and deferred health care, dentist, stock up on food, continue to pay rent / mortgage, pay your attorney, etc, etc... are generally items that are okay to spend money on just before filing.

...and how is all this verified by the BK trustee?

That question suggests that you want to manipulate the system. Just don't do it. It's not worth getting caught over even $10,000 when you have the opportunity to sheds hundreds of thousands if not a millions dollars of debt. The Trustee knows by looking at your bank statements and State and Federal tax returns. They have accountants and staff who can perform rudimentary accounting forensics, and will call in a pro if they think you're hiding something.

Don't get caught. Just be honest. Again... seek a professional who specializes in Bankruptcy and pre-bankruptcy planning / asset protection.

[ryan]

That question suggests that you want to manipulate the system. Just don't do it.

I don't know whats wrong with that question...

I asked for reasons like this: I do have "necessary and deferred" auto care, for example, that I have put off for a long time.

Timing belt/water pump, way past due changing etc. Car will be un-driveable soon, but I want to make sure I pay the bill in the most identifiably correct way.

In the past, when I've had local mechanics do work its been paid by credit card or cash. (many don't accept checks)

Since CC are out now, I'll assume cash may be suspicious so I'd be better off paying EVERY bill from this point forward by check so it is fully trackable?

I do appreciate your advice.

[justbroke]

I don't know whats wrong with that question...

I don't mean it negatively, but I was giving the response as a general, please don't hide money. I think pointing you to an attorney that specializes in asset protection is the best that I can offer you.

Timing belt/water pump, way past due changing etc. Car will be un-driveable soon, but I want to make sure I pay the bill in the most identifiably correct way.

Yes, fix the car, if you're keeping the car. Just keep receipts!

Since CC are out now, I'll assume cash may be suspicious so I'd be better off paying EVERY bill from this point forward by check so it is fully trackable?

Actually, most people who are insolvent stop using their credit cards, months before filing.

[ryan]

Actually, most people who are insolvent stop using their credit cards, months before filing.

Yeh, I've not charged anything for 4 months now, but want to put even more time between when I did and filing date.