Cash exemptions in Colorado

[kartoons19]

Hi Everyone,

Like most of you, I have found myself having to declare BK due to job loss and extended unemployment. I have mostly CC debt and some student loan debt. I work part time and have few assets, so I qualify for chp 7.

I have one more year of grad school and will be getting a student loan disbursement the first of June. I would like to file mid June. I will use most of that money to pay off my car and attorney. I will have about $2000 left to pay living expenses, as I don't make enough from my part-time job to cover basic living expenses. I live on a very frugal budget and still the earnings are not enough.

I have read conflicting responses that they could take the $2000 as it is considered cash or I could list it as a loan. A few posts said to list it as an exemption. According to the Colorado exemption list, there isn't a wildcard available or a cash exemption except one pertaining to wages. I am concerned about filing chp 7, only to lose student loan money that is needed to keep a roof over my head. Has anyone in Colorado been through this situation? Thanks for your help.

[SMinGA]

Just looked up CO exemptions. No wild cards, nothing for cash/liquid assets at all.
If this money is for rent, utilities, etc. - why not prepay those items? You'll need to be close to $0 in cash/checking/savings accounts when you file. Any amount you have on hand as of your file date appears fair game to the trustee.

Don't see how you could list cash as a 'loan'. The student loan will go in on your creditor matrix, for the purpose of notification. The cash on hand is an asset.

[kartoons19]

Thanks for your response. That is what I decided to do. I need the student loan money to pay off living expenses over the summer, so I'll just prepay those expenses before I file.

Thanks.