Checking/Savings Accounts

[annikasaunt]

I have recently contacted a BK Attorney. I am bringing him my final payment this week with all the paperwork he has requested. I have read that the bankruptcy Trustee will take my money in my bank accounts as assets. How on earth can this be? I will obviously have some more money now that I am not paying all my creditors...
Would it be wise to have someone open an account in their name for me to put some money in?
My goal is to build up a nice savings account to get myself back together again and it seems unfair for them to take what you are working for in the long run. Am I being fair?!!

[FilingOnMyOwn]

No thats not how it works. Whatever you have over the exemptable amount becomes property of the bankruptcy estate, and goes towards paying back the creditors from which you are seeking protection.

[SinkingFast]

Money is an asset.

Attnys here post on petitions how much cash you have on hand. That's money in your pocket or wallet. How much money you have in checking and/or savings, on deposit, at the bank. And they name the bank too. Generally, those monies are covered by some sort of exemption in BK petitions I've looked at on PACER.

Pare down your bank account. Start using Money Orders to pay bills. Buy groceries and gasoline with a Debit Card. Anyway you can to get money outa the bank accts ASAP. If you have bills you haven't paid yet, go buy Money Orders for each one. If your insurance is coming due soon, pay it with a Money Order in advance if you can. Draft a Cashier's Check at your bank for next month's rent/mortgage payment and pay your Landlord/Lender. You don't want any checks floating around that might bounce if the Trustee freezes your accounts temporarily.

Also, you need to check your State's exemptions for earned, unpaid wages. That can include unused vacation and sick days as well. Our state allows us to exempt all but 10% of earned but unpaid wages. Since Hubby gets paid 2x/month, we have planned to file on the 1st or the 16th so the earned but unpaid amount is the lowest it can be.