Question about cash

[travuw]

We are filing Chapter 7 in WA and it looks like federal exemptions are a better option for us.

We have no equity in our home as it is underwater and we're not trying to stay in it. We do have about 12-13k in cash and I'm having trouble getting a clear answer about whether the federal homestead exemption can be used to protect our cash? From what I can tell, if we don't use the exemption available for home equity (~20k) we can use up to half of it on a wildcard, aka our cash. Is this correct?

We will be having an attorney represent us, I just want to have a heads up on whether I should be using cash on viable expenses like dental work etc. if we can't keep it.

Thanks in advance.

[ValleYum]

Yes. You and your wife (if filing together) can each exempt $10,825 if you don't use the homestead. There is also another wildcard in the federal exemption set that allows you to exempt another $1,150 each or beef up other exemptions since the wildcards are "stackable".

My hubby and I had less cash than you guys but we used the federal exemptions to successfully protect all of it here in Western Washington.

Good luck to you!!!

[hnhlvr]

Ahh, I just lost my post... Yes, if you do federal you can keep that cash IF you file jointly. I was concerned when looking online and read something about only allowing $200, but the attorney I spoke with said with federal, the small amount I do have (more than $200 but much less than what you have) will be safe and I will be able to make my rent payment next month.