Ask a Lawyer - Archive

Can I file for bankruptcy even if I have money in the bank?

You do not have to be without assets, liquid or otherwise, to file bankruptcy. All it requires is the willingness to submit your non exempt assets to payment of your creditors.

All states have some system of exemptions that define what assets a debtor can keep despite owing creditors money. In California, where I practice, we have a set of exemptions in Code of Civil Procedure 703.140 that gives Californians in bankruptcy a grubstake exemption, or wild card exemption, of nearly $22,000 in any kind of property, including cash in the bank.

An experienced bankruptcy lawyer can assess your situation and help you maximize what you can keep through a bankruptcy filing.