Is cash considered personal property?

[tiffanydawnn]

I'm trying to make sure I'm interpreting the code correctly (for Delaware):

(b) In any federal bankruptcy or state insolvency proceeding, an individual debtor domiciled in Delaware shall be authorized to exempt from the bankruptcy or insolvency estate, in addition to the exemptions made in this subsection and in § 4915 of this title, personal property and/or equity in real property, other than the debtor's principal residence having an aggregate fair market value of not more than $25,000.

Would that include cash in a bank account?

[backtoschool]

cash is exempted as cash, not personal property. Depending on your exemptions that will ether be with a cash exemption or a wildcard. Many states and the federal exemptions allow you to use a portion of the unused homestead exemptions as a wildcard. Cash in your bank account (or any other account, prepaid debit card, etc) on the day of filing needs to be exempted.

[tcreegan]

Hi tiffanydawnn, Hi backtoschool,

Boy, Delaware has some arcane law still on the books. They are musically inclined: pianos, piano playing attachments, organs, owned or leased are exempt. I got a kick out of this one: if valuation of the exempt property is required, three 'judicious and impartial freeholders' are selected. And if the freeholders do not do their job, they are fined 'not more than $5'

But back to the matter at hand, Del. BK exemptions start at § 4914, 4915 relates to retirements accts, 4916 relates to Del. College investment plans and these sections are nicely modern.

Personal property exempt up to $25,000 (doubled for joint filing) all your "stuff"

Motor vehicle and/or tools of the trade exempt up to $15,000 (doubled in a joint filing)

Primary residence up to $75,000 (not doubled) (going up to $100,000 next year)

And most importantly, NO cash exemption and NO wildcard, so you need to get rid of all your cash (on legit expenses) before filing.

Good luck w. this,

Tom in Colo

[chazdiezal]

I thought 10-4903 allows a personal property wildcard exemption of up to $500 for a head of household, this can't be used to exempt cash?

[tiffanydawnn]

Thanks for the advice.

10-4093 says "other personal property not exceeding $500, the articles to be selected by the debtor"...

So what am I supposed to do with my money? I was planning on saving money for a deposit on an apartment (house is in foreclosure and I was going to file BK as the sale date approached).

[tcreegan]

Hi tiffanydawn,

The BK will extend the foreclosure, so you can stay a few months longer in the house rent-free. Spend the $$ on medical/dental/vision you have been putting off, car repairs, 1st-last-sec.dep on an apartment, those sorts of things.

Just no trips to Atlantic City.....

Tom in Colo

[AngelinaCatHub]

Thanks for the advice.

10-4093 says "other personal property not exceeding $500, the articles to be selected by the debtor"...

So what am I supposed to do with my money? I was planning on saving money for a deposit on an apartment (house is in foreclosure and I was going to file BK as the sale date approached).

I believe in your bk, if you earmarked that money for an apartment, listing this in your schedules as an addendum, or even a Court Paper (by your lawyer, ask his advice when the time is near) the Court would have no objection to that. Have you shopped for an apartment? Have you found one that would be covered by your savings? How much is your savings as you can have $500 clear a week as head of household as non attachable. Still, it is up to your state rules and interpretations by the Court. I really don't think you would have a problem if, at your 341, you simply explained this to the Trustee. 'Hub

[KevFinnerty]

Wait a minute. I am really confused now.

My initial bk form Schedules B and C were originally filled out by the paralegal with a line of "$50" for "cash on hand", which was claimed as "exempt" on the form.

She never asked me what I actually had - in fact the entire Schedule B was pretty much just made up by the atty (they told it was the "standard amounts that they use") - so I submitted a corrected form to more accurately represent my assets, and for example I had them change the cash on hand # to $500.

They told me that all the stuff on Schedule B/C didn't even matter. But I insisted on trying to make it accurate, especially since, as I understood it I was entitled to something like $10,000 total of all that (including cash and bank accounts) and all I have doesn't even come CLOSE to that amount.

But from reading this thread it makes it sound like cash and bank accounts are NOT exempt??????????? So by insisting on being honest, I am now going to lose this money?

I am using the federal exemptions btw, and giving up a house with equity in it (also being foreclosed on).