Ask a Lawyer - Archive

In regard to filing CH 13, are there any "safe accounts" that I can put my money into that the bankruptcy can't touch?

First off, in Chapter 13 the debtor usually keeps everything they own at filing, and makes payments on a Chapter 13 plan that gives creditors what they would have gotten had the case been filed under Chapter 7.

What creditors would have gotten in Chapter 7 is determined by applying the available exemptions to the debtor's assets. IRA's are exempt under federal law up to a million dollars. 401(k) accounts aren't property of the estate at all.

Each state has different exemptions.

In California, the CCP 703 series of exemptions allows you to keep up to $21,000 plus in any kind of asset, including money in the bank. There are also exemptions for loan value of life insurance, household goods and furnishings, etc.

An experienced bankruptcy lawyer can evaluate your holdings and help you make the best use of the available exemptions.