Can exempted cash be spent post filing?

[bornfree2]

Since the bk process can take many months, what exactly happens to bank account and cash that is needed for regular living expenses? If they are claimed for exemption, but the trustee has to process the case, what exactly can be done with this exempted property?

Is it a case of ask for forgiveness in light of continuing necessity to survive?

[justbroke]

You can live post-filing. Anything that is necessary to live is perfectly fine. However, if there's a question as to a "large" chunk of money and whether it's truly exempt, it's best not to spend the "chunk" on frivolous things.

No one has ever had issues with this unless the spent all of a sum of money where a portion of it was likely not exempt. For example, getting an inheritance and thinking that it's not property of the bankruptcy estate... even though you attempted to "exempt" it on the forms.

Just live your life. Don't gamble, and stay out of Vegas. Don't make any large purchases or life changes. But do... eat, drink, get shelter, buy gas, buy food, pay your cell phone bill, pay your mortgage, etc., etc., etc.

Remember, it's only the "pre-filing" money (assets) that would be in question. Most anything you acquire after filing is not property of the (Chapter 7) bankruptcy estate.

[bornfree2]

Remember, it's only the "pre-filing" money (assets) that would be in question. Most anything you acquire after filing is not property of the (Chapter 7) bankruptcy estate.

I understand whatever penny debtor finds on the street post filing is theirs, all theirs. But im referring to cash before filing that is claimed exempted. In california the homestead/wildcard exemption for renters is $29,275. There is also grubstake exemption of $1,550 for 'any' property ... so cash. The two can be combined so more cash can be wildcarded. (i know you know all this but for benefit of others coming in through web searches)

So a single dollar from THAT cash pre filing, is that frozen or can be spent? Again, assume no income whatsoever post filing but still daily living necessities and bills to pay.

Yes, yes i over think things and yes i go by the letter of the law since i dont have experience with how things are in practice. But if its the estate's cash on filing and even though exempted, everything is frozen till the discharge, its unclear if those dollars pre filing can be spent.

[justbroke]

It can be spent if it's exempt, If it's questionably exempt, then don't go spending it all on lottery tickets. People that file with attorneys can get a good "legal" answer to your question, which you just can't get here. I don't know of anyone that has had an issue with spending money on living expenses post petition in a Chapter 7 where the money was exempted.

Unless your money is in a physical bank that actually was frozen -- it does happen! -- there are no particular restraints.

Otherwise you're just overthinking this... way overthinking this.

[bornfree2]

Otherwise you're just overthinking this... way overthinking this.

You know how some people are into reading bad news all day long on their phone and they call it Doom Porn? im sort of like that but its Legal All-Goes-Wrong-For-Pro-Se Porn lol )

[justbroke]

I was Pro Se (twice). I did as well as anyone could expect. You'll read here where many Pro Se debtors are praised by their judge and/or trustee at the well done paperwork.

They can tell if you're bluffing or withholding. I filed in a district in Florida where they were -- and still are -- notorious for sending an appraiser to your home. This is for those who are keeping their (2,400sq ft+) home and claiming they have less than $1,000 of property (furnishings, clothing, dvds, televisions, pots/pans, etc0. It was obvious that my paperwork was through and no appraiser came to my home... despite the same trustee nearly consistently sending them to people's homes (and my house was over 3,500sq ft).

Because I was honest. The honest debtor deserves the mercy of the court. This is why many judges write, in their opinions, that the good, honest debtor deserves a fresh start.

[bornfree2]

In my life experience, the majority of those with power are drunk with it and abuse it for personal gain. The ones that are put in place to oversee and put the breaks, are themselves apathetic. See no evil, say no evil. hear no evil.

I agree honesty is the way to go. I dont agree its a valued, saving virtue in our society any more. But my faith teaches me that the righteous win in the end, and God provides a way true and through. And that has also been may life experience Then in the end the righteous and unrighteous are judged, and all the corrupt profiteering will be weighed and brought to account.

Time and time again, i return to the same conclusion. - it is what it is, and money is the only thing that this country understands and values.