Bankruptcy and Savings

When an individual declares bankruptcy, he or she may declare Chapter 7 or Chapter 13. Depending on various circumstances, including which chapter an individual files, he or she may be able to keep the money in his or her savings accounts.

It is important for bankruptcy-bound individuals to discuss their options with a lawyer. If you or someone you know is currently considering bankruptcy, contact the Arizona bankruptcy lawyers of the Harmon Law Office, LLC, at 480-829-0494 today.

When Are Savings Saved?

Individuals who declare bankruptcy under Chapter 13 need not worry about losing any of their assets. Chapter 13 is a restructuring form of bankruptcy; individuals are given the chance to work out more reasonable payment options with their creditors without giving up their property.

Individuals who declare Chapter 7, on the other hand, may not be able to hang onto the money in their savings accounts. In general, bankruptcy courts order individuals with excess cash to pay off their existing debts with their savings. In some cases, though, savings may be considered exempt.

Since exempt property is free from liquidation, individuals with savings accounts who wish to declare Chapter 7 bankruptcy should discuss their legal options with an experienced bankruptcy lawyer to learn more about saving their savings.

Contact Us

Many individuals work for years to build substantial savings accounts. To learn how to potentially safeguard yours from a Chapter 7 bankruptcy liquidation, discuss your legal rights and options with the Arizona bankruptcy lawyers of the Harmon Law Office, LLC. Contact us today at 480-829-0494 for more information.