Chattanooga Bankruptcy Attorneys Explain Why You Should Not Cash Out Your Savings Prior to Filing Bankruptcy

    CHATTANOOGA, TN, May 15, 2015 /24-7PressRelease/ -- Taking money out of your savings account expressly to hide it from your creditors or a court-appointed bankruptcy trustee can be construed as fraud. According to Chattanooga bankruptcy lawyers Clark & Washington, bankruptcy fraud may result in the loss of your discharge or even in criminal prosecution. However, there are instances when taking money out of your savings account is not only allowed, but also encouraged.

If the policy of your bank is to freeze your account with them once you file for bankruptcy, then it makes sense to take your money from your account and move it somewhere else. Keep in mind, however, that you still have to disclose this amount in your bankruptcy filing.

Check if your state has an exemption that covers the money in your account or if the amount can be eligible for a wildcard exemption. If so, there's no need to take the money out of your savings account as it is protected from the bankruptcy trustee.

If you cannot exempt the money in your savings account, you can take it out to spend on necessities such as rent, food and gas. Alternately, you can also use the money to buy an exempt asset that is allowed by your state. As long as it is not excessive, most states accept exemption planning by individuals filing for bankruptcy.

Consult with the bankruptcy experts at Clark & Washington before you file for bankruptcy in Chattanooga. You can depend on their experience and knowledge in the field to help ensure a successful bankruptcy filing.

To learn more about their services, go to http://www.Chattanooga-bankruptcy-attorney.com/.

Established in 1983, Clark & Washington is now one of the leading bankruptcy filers in the Southeast. They have locations in Georgia, Florida and Tennessee. Clark & Washington specializes in personal chapter seven and 13 bankruptcy. They offer honest, helpful legal advice to those experiencing financial hardships.

For more information, visit http://www.Chattanooga-bankruptcy-attorney.com/.

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