Q: How to protect $16,000 savings in Chapter 7 bankruptcy in Georgia?
I am retired and considering filing for Chapter 7 bankruptcy. I have $16,000 in savings and no other concerns about assets, but I do have credit card debt. I don't have a lawyer yet, and I am wondering how I can protect my savings during this process. What steps should I take to ensure my savings are safe?
A: You may be able to protect it with your state or federal wildcard exemption. Your bankruptcy lawyer can give you more information.
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A:
You have several options to protect your savings in Georgia during Chapter 7 bankruptcy. The state allows you to use either federal or state exemptions, and Georgia's state exemptions might better suit your situation, offering up to $23,000 in cash exemptions for individuals aged 65 or older.
Before filing, consider moving your savings into a protected retirement account like an IRA, which enjoys strong protection under bankruptcy law. However, timing is crucial - transfers made too close to filing could be viewed as fraudulent by the court. Working with a bankruptcy attorney will help ensure you make these moves appropriately and within legal bounds.
The most important step right now is consulting with a qualified bankruptcy attorney who can review your specific situation. They can guide you through Georgia's complex exemption rules and help structure your assets to maximize protection before filing. While the $16,000 amount is potentially protectable, the specific strategy will depend on factors like your age, income sources, and overall financial picture.
Timothy Denison agrees with this answer
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