Exempting cash

[coopersmydog]

I'll be using federal exemptions. I have no equity in my home. Can I use the unused portion of the homestead exemption to protect about 6,000 in cash?

[livnlow]

I look forward to reading responses to this one too. I do ask though, how will anyone know you have $6000 in cash?

[JoeBankrupt33]

Yes, since you are not using the homestead exemption, you can exempt the cash, or amount in a bank account.

I do ask though, how will anyone know you have $6000 in cash?

If you have the exemption available, use it instead of trying to hide the cash. Although nobody will probably ever know, you are under oath at the 341 when they ask if your petition is accurate.

[BornAgain]

I look forward to reading responses to this one too. I do ask though, how will anyone know you have $6000 in cash?

I guess he's not willing to sell his integrity for $6,000.

[livnlow]

I guess he's not willing to sell his integrity for $6,000.

Well shame on him. It's 2009, you can buy a family, a town, and a person's virginity on Ebay. I'm sure if you look hard enough you can find some integrity on there somewhere.

[Pizza]

how will anyone know you have $6000 in cash?

I have a hunch this depends on what the cash is spent on. Things like gas & groceries, I doubt anyone will know (or care); but if a $6000 piece of property (like a car) were acquired after bankruptcy with no $6000 income documented on the 1040 form, my first guess is the IRS would be curious where the money came from.

[treehugger1]

Here is an interesting take on exempting cash in Oregon. When I spoke with BK attorneys a couple of years ago, they made it clear that since Oregon does not honor the federal BK exemptions, the Oregon exemptions against judgments/levys/BK's hold. In these exemptions there is a statute line that states up to$7500 in bank accounts (money exempt from the state statues of garnishment/bank levy) is exempt from seizure of any kind. The attorneys kept telling me that even if I had $5K in the bank on the date I filed the BK 13, that I didn't need to worry about it. I have not taken the opportunity to test their claims, but the state statutes here clearly say that Oregon does not allow the federal BK exemptions and the state exemptions apply. Guess what? The state statutes do allow for up to $7500 in bank accounts of exempt funds under the general seizure rules for garnishment and bank levy. I guess it all comes down to your state laws and whether the federal or state exemptions are allowed in BK.

We are also allowed $1000 exemptions for firearms. Go figure.

[AngelinaCatHub]

I like that firearm exemption. I think everyone should own one.

The OP should go to his state statutes and search on exemptions. However he is right not to hide that money. This could quell your bk effort as well as get you a criminal penalty as perjury is a felony. Don't Pi$$ off the Judge or Karma. 'Hub

[WillinVT]

I live in Vermont and I will be using the federal exemptions as well.

Even though my wife and I rent, we can still use the "Up to $10,125 of unused homestead exemption amount, for any property"?

Interesting.

I have been going over schedule C "Property Claimed as Exempt".

Since my wife and I are filing together, everything we have is Joint, other then my car. Even though she drives the car and her name is on the insurance, the title is in my name.

When filling out schedule C, I have this listed.

Security Deposit with Landlord (Total - $679). (Husb Exempt - $600) (Wife Exempt - $79)

First of all, is this allowed? The reason I am doing this is because the wild card for Federal Exemptions is $1075 and I need $900 for my car exemption. My car is worth $4125 and the exemption for vehicles is $3225. If I can use the Unused Homestead exemption, there won't be a problem. I just did not know if when splitting exemption between spouses if they had to be equal.

[eddiep]

Will if you are filing jointly the exemption is 20,250! plus 1075 each wildcard and 3225 each on the vehicles, very generous. I live in NH and we are also using the federal exemptions. Listening to others here I feel very lucky.