When a debtor files Chapter 7 or 13 Bankruptcy in Arizona, the Trustee will follow both federal and state laws that apply to the proceedings that apply. State regulations vary in the specifics of what property is exempt. There is an exemption for cash, which covers the debtor’s bank accounts as well as the ready cash the debtor brings to the bankruptcy proceedings.
Arizona’s cash exemption amount is $150 (one hundred and fifty dollars). That is the maximum amount a debtor will be allowed to have in any bank account, or to hold personally, on the day of the filing. In Arizona, if the total exceeds the $150 threshold, the Trustee is authorized to take the money and apply the proceeds toward paying creditors as dictated within the Federal Bankruptcy Code. Timing is very much an issue: any checks written by the debtor must clear before the bankruptcy filing, or the trustee may take that money.
Working with an experienced, knowledgeable Arizona creditor’s attorney can help tremendously when evaluating a bankruptcy filing. If you would like more information about cash exemptions in bankruptcy, creditors’ rights, or if you need assistance from an attorney, contact Windtberg & Zdancewicz to schedule an initial consultation.
The attorneys at Windtberg & Zdancewicz, PLC, provide clients with experienced legal representation in all collection matters. We are experienced in creditor’s rights including garnishments, charging orders, attachment, property execution, trustee’s sales, foreclosures, judgments, judgment collection, domestication of foreign judgments, and creditor’s issues in bankruptcy cases. If you need assistance with your collection matters, please contact us at (480) 584-5660.