Would a BK filing take away my savings?

[jo23171]

I have been unemployed for the past 2 years. $170k in debt and $20k in my brokerage account. No other assets. Would they take away the money I have in my account and leave me flat broke if I file a chap 7?

[ccsjoe]

Depends on whether you can exempt it. California has a very generous exemption amount under system 2, a little over 23K, so if you really have no other assets, then technically yes, you could exempt your entire brokerage account and not lose it. Would need to know more about your asset and income situation in order to provide better guidance.

[jo23171]

$20k in my brokerage account is all I have, no cars, no home, no property, not even a cell phone. I do have a computer that's about 5 years old and clothing. I haven't worked for the past 2 years so my taxes show $0 for income and I currently don't have a job. Oh and I am single and no kids.

[ccsjoe]

Any jewelry, tv's, electronics other than really old computer, appliances, anything else?

[jo23171]

no jewelry and no appliances. I live with a friend and he owns everything in the house.

[ccsjoe]

Then yes it seems as though you could use the wildcard exemption under system 2 to cover the brokerage account. However, before deciding anything, please consider the aftermath, i.e. how will you support yourself post-filing. BK takes away your debt but does not reestablish your income.

[jo23171]

Thanks Joe, the main reason I want to file is that I don't want to get sued and the creditor seizes the money out of my brokerage account. It has been almost 2 years since I stopped paying my bills so I think pretty soon they will come knocking w/ court papers.