Unemployment Compensation

[bent]

I understand that money received from Unemployment Benefits can be protected on Chapter 7 provided it is accumulated in an account, and can be traced.

My wife is receiving unemployment benefits right now. However recently, we just received a nice refund from our 2009 tax return. My question is, can I have my wife just save the unemployment money in her checking account and we instead use the tax refund for everyday expenses, and when it's time to file for Chapter 7 petition have the money in her checking account protected since it is Unemployment benefits?

Thanks, I hope my question makes sense.

[tigergem]

It can (and might) be argued that the standing balance in the account is not subject to the unemployment exemption if any non-exempt funds were EVER deposited in that account. If she opened that account and the only deposits to it - ever - since opening it - were unemployment compensation, then you shouldn't have any trouble.

[Fallonedward]

We have been collecting Unemployment Benefits since April, we have it go into our checking account so we can make the house payment.

Should we open a new bank account and have the unemployment go to that new account to keep things separate and can we still use the money to make our house payment?

thanks