January 22, 2010
What Happens To Extra Money I Have When Going Into Chapter 7 Bankruptcy?
I will be going into bankruptcy soon and need to know what happens to any extra money I may have? I live in Illinois. I heard from an attorney that I am able to keep $4000 and anything over that I lose. Is this true? and if it is true, when does anything over that get taken away? is it right when you file? after the 341 meeting, after discharged, when? And do I have to give them the money or will they automatically go into my checking account and take everything? Thanks
Go to a casino.
Have a record of it, like a receipt for food.
If worse comes to worse, you can say you lost a grand at the casino in the slots (that way you don’t get a receipt). Stuff it in your mattress. You will need a little emergency fund – take it out of your checking today.
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you must declare all assets as well as debts in Federal court. Yes they will ask for the money to settle some accounts that you owe or divide the money up among all creditors
If you have extra money in your pockets then why are you filing for bankruptcy? Pay off your debts.
Any “extra” money should be used to pay your debts.