Legal Question in Bankruptcy in Iowa

How does a lump sum severance payment affect me in a Chapter 7?

I was just about to file for Chapter 7 Bankruptcy when my job was eliminated at the company I've worked at for 13 years. The company is giving me six-months severance pay in one lump sum. I am concerned that having $xx,xxx.xx in cash assets from this severance will result in the court attaching those assets - which my family will need to live on until I find new employment.

I understand that I ultimately will need to retain an attorney to advise me about the bankruptcy, but I was hoping to get at least a general idea as to how the federal and Iowa bankruptcy laws address such unique issues as this.

Thank you very much in advance for your time and consideration.


Asked on 1/07/02, 8:34 pm

1 Answer from Attorneys
Bruce Buckrop Bruce Buckrop

Re: How does a lump sum severance payment affect me in a Chapter 7?

Iowa's exemptions in the field of wages due, is $1000. and after they are paid the isssue is one of cash assets, which you can only exempt under the $100, "misc. other property", better see a lawyer to see what you can do to maximize your assett protection

Read more
Answered on 1/08/02, 1:19 pm


Related Questions & Answers

More Bankruptcy Law questions and answers in Iowa