Legal Question in Bankruptcy in Texas
Bankrupcy, Savings, and Unemployment
1. I have recently been laid off. I wish to file bankrupcy in my state. Is this possible to file while unemployed.
2. I have $23,000 in unsecured loans (visa cards). I also have $10,000 in accumulated savings. When I file bankrupcy will the court appropiate my savings to pay off all my debts?
1 Answer from Attorneys
NEVER FILE BANKRUPTCY WITH MONEY IN THE BANK
Why would you file bankruptcy with money in the bank? Of course, the bankruptcy court will take your money and distribute it to your creditors before granting you a discharge. The better plan is to send each creditor a minimum payment each month until you get re-employed. At the very least, deplete your savings to the point where the last dime you spend goes to your bankruptcy lawyer. What good is bankruptcy, if you lose everything, anyway?
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