In Arizona, 25% of unpaid wages are non-exempt. Yet, once they are deposited into an account, there is no protection, period.
As with most people, my paycheck on Friday covers wages earned a couple of weeks before that. So, if I file Chapter 7 BK on Thursday, theoretically those unpaid wages are property of the BK estate, and 25% of them could be taken by the trustee. If I wait until Friday to file, the check is in my account, and that cash is 100% owned by the estate (with the exception of the $300 exemption amount of deposits in AZ).
Bottom line: When is the best time to file Chapter 7 if you are trying to minimize any payment of wages to the trustee?
As with most people, my paycheck on Friday covers wages earned a couple of weeks before that. So, if I file Chapter 7 BK on Thursday, theoretically those unpaid wages are property of the BK estate, and 25% of them could be taken by the trustee. If I wait until Friday to file, the check is in my account, and that cash is 100% owned by the estate (with the exception of the $300 exemption amount of deposits in AZ).
Bottom line: When is the best time to file Chapter 7 if you are trying to minimize any payment of wages to the trustee?