And so that is a really good question. Yes, cash is a non-exempt asset. So, if on the day that we file your bankruptcy Petition you just received your paycheck, that would be a really bad idea. We don’t want you to get paid and then we file bankruptcy and then your paycheck is at risk to the bankruptcy Trustee seizing it. So, when you come into my office and sign your bankruptcy Petition, we’re going to ask you: What are the balances in your bank account? When do you expect your next paycheck? We want to file the bankruptcy when there is less than a meaningful amount of money in your bank account. A meaningful amount of money in this situation is $300 or less. We don’t want to leave money in your bank account and file bankruptcy.
Now what that doesn’t mean is right before we file bankruptcy you just go to the bank, take it out in cash and hold it in your wallet; that’s the same thing as having it in your possession. We have to make sure it’s spent on reasonable and necessary expenses. If you’re spending $1,000 or more on the eve of bankruptcy, we’d like you to keep receipts for any transaction over $200, and we would need to be prepared at the meeting with the Trustee to explain how the money got spent on the eve of bankruptcy. Don’t worry about this process. We will counsel you through it. We’ll make sure you know which expenses are reasonable and necessary. We won’t file the case until your bank account balances are low. We do this all the time. Don’t worry. We’ll help you.
