exemption

[imdk2005]

I just lost my job and will be looking to file chapter 7 I will not be able to pay my un secure debt which is over 75,000. but I do have about
15,000 in bank accounts and stock plus I will be getting a severance package of about 20,000 does anyone know if there is a cash exemption in Boston Mass? I have to file soon since I will not want the severance pay to show up as part of my last six mounts of employment. I will be receiving this as a lump sum and there fore it would look like one months pay. thanks in advance for any help or advice one has in this matter.

[justbroke]

The Mass. standard bankruptcy exemptions are terrible when it comes to cash. However, you can use the Federal exemption set. You may be able to protect up to $8,725 of that cash through the unsecured homestead exemption.

[BKDefender]

imdk: You need to talk to either a bankruptcy attorney or a financial planner about how to squirrel away non-exempt cash assets into exempt assets. Specifically, you need to see what the trustee will not object to you doing.
For example, here in Nevada (specifically in the 9th circuit) one can fully fund Roth IRAs with up to $5k/yr ($5k last year up until tax day, then $5k for this year) and convert $10k in non-exempt assets.
In speaking to the trustee, they put up less objection to this if the cash came from the sale of a non-exempt car or something similar than if you just had $10k sitting around in cash for quite a while and just didn't pay bills.

--William