Legal Question in Bankruptcy in California

Chapter 7 Discharge re Non-Consumer Debt

I have only non-consumer debt, i.e. a small judgment for property damage to a rental car, which would be fully dischargeable in a no-asset case. I have no income (long-term unemployed), but I do have a savings account, which is NOT a retirement account. Is the trustee entitled to reach this account even if the court finds there is no bad faith? In other words, would my interest in retaining my savings outweigh the creditor's interest in the tort claim?


Asked on 12/19/06, 8:20 pm

1 Answer from Attorneys
Carl Starrett Law Offices of Carl H. Starrett II

Re: Chapter 7 Discharge re Non-Consumer Debt

You haven't really given enough information to get a proper answer to your question. There are two different sets of laws that govern what California residents can keep when they file for bankruptcy. One list of exemptions is more beneficial to property owners and the other list is more beneficial to renters.

A bankruptcy attorney would need to know what other assets you have and how much money is in the account in order to better advise you if any of the bank account money is vulnerable to seizure by the trustee.

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Answered on 12/19/06, 8:48 pm


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