One of the benefits of bankruptcy is that your creditors may be blocked from conducting collection activities against you and your property. However, not every piece of property you own qualifies for a bankruptcy exemption. With this, you may wonder if there is a certain way to handle your bank accounts before submitting your bankruptcy petition. Read on to discover whether the funds in your bank accounts are exempt and how a seasoned Louisville, Kentucky consumer bankruptcy lawyer at Schwartz Bankruptcy Law Center can help you protect as much property as possible.

Are the funds in my bank accounts exempt during bankruptcy?

Generally speaking, the funds in your bank accounts may be eligible for protection by bankruptcy exemptions throughout your proceedings. Specifically, the state of Kentucky enforces a revised statute in which personal property and health savings funds may be exempt. More specific examples of eligible funds are as follows:

  • A reasonable amount of funds you received for loss of future earnings to support you and your dependents.
  • A reasonable amount of funds you received in alimony and child support for you and your dependents.
  • Up to $7,500 of funds you received as the victim or dependent in a personal injury case.
  • The funds you received as a dependent in a wrongful death case.
  • The funds you received as reparation as a crime victim.

This is not to mention your being able to use the wildcard exemption to protect the funds in your bank accounts. This exemption type allows you to claim up to $1,000 in any real or personal property. So if there is ever an instance where your creditors touch these protected funds, presenting the right proof to your bankruptcy trustee may help iron out this situation straightaway.

What types of property qualify for bankruptcy exemptions?

Aside from the personal property and health savings funds exemptions, your funds may also qualify for such protection in other ways. The most notable examples read as follows:

  • The pensions and retirement accounts exemption:
    • The funds from your EISA-qualified retirement account.
    • The funds from your police or firefighter’s pension.
    • The funds from your state or county employee’s pension.
    • The funds from your teacher’s pension.
  • The public benefits exemption:
    • The funds from your public assistance.
    • The funds from your unemployment compensation.
    • The funds from your workers’ compensation.
  • The insurance exemption:
    • The funds from your cooperative life or casualty insurance company.
    • The funds from your life insurance proceeds, under certain circumstances.
    • The funds from your group life insurance proceeds.

Importantly, you may only claim these exemptions if you have resided in the state of Kentucky for at least two years before your bankruptcy filing date. In conclusion, the time to act is now. So please pick up the phone and call a competent Louisville, Kentucky consumer bankruptcy lawyer from Schwartz Bankruptcy Law Center. We look forward to hearing from you.