What Happens If I Have Money In The Bank When I File Bankruptcy?
It really depends upon the state if you can have some amount of cash in the bank. Each and every state can have its own regulations. It is important to read through the rules to check out what are the rules for registering bankruptcy. As an example, in case you live in New York, and you use a homestead exemption option to stay in your house, in such conditions, you are permitted to possess $1000 in your savings account or checking account.
However, if you are married, then you can actually hold around $2000 in your account if you are in the process of filing bankruptcy. The ideal place to get your solutions is Queens Bankruptcy Lawyer. They have got the means and the expertise to guide you through this. You need to understand the reality that although, you are allowed to keep cash in your bank account, but, there might be other problems linked to having cash in your bank account.
Disadvantages of having money at the time of filing bankruptcy
When the financial institution comes to know that you have got cash in your bank account, it can work roughly against you. The bank account may use your balance to lessen your financial debt, or other loan for that matter. It can freeze your financial assets you have in the bank.
Is it vital to disclose what amount of money you have?
Yes, it is absolutely necessary to disclose how much money you have while declaring bankruptcy. Not just the cash, but all the assets you have got with you. The bank account wants to have your details so as to take care of your lenders. The lenders want to get their money back. And the bank gives back funds to lenders, if possible by selling estates and property, or maybe by freezing your bank account.
Bankruptcy does not indicate bank takes away everything; you can always keep your necessary belongings. You are permitted to have your auto, however, luxuries cars can grab attention, and you may lose your car too. You may also keep house essentials, such as household furniture to live at home. You may also keep your clothing along. Nevertheless, you are recommended to ask your legal representative how much you can keep.
You may choose to get in touch with Attorney David Shapiro, specifically if you stay near Queens.
Exempting bank account funds
When you are through to finding the cash limit that you are allowed to have, you have to even ensure that you bankruptcy trustee and the court is aware that you want this cash to have an exemption. In case you don’t do it punctually, then the money may get into the Bankruptcy trust account. And you may very well lose all this.
Conclusion
Generally, these may seem small and unimportant concerns, but these are indeed essential ones. Always find the best legal representative to direct on bankruptcy. It is necessary you know why we need reliable legal professionals to deal with cases.