If the question asks Is Cash Exempt in Bankruptcy the answer is usually no but it depends. However, most of your current wages or earnings are under protection to an extent. Therefore money in your pocket or in an account may be mostly exempt to the extent that its covered by the wage/earnings exemption.
Cash in a Retirement Account:
When choosing which exemption to use you have to choose either the States exemptions or the Federal governments exemptions. Oklahoma exemptions protect case values in qualified retirement accounts. This includes retirement accounts, 401 k accounts and also pensions. The important thing is the money in the retirement account must be placed in the account in the normal course. The normal course means that you can’t all of the sudden move sums of money in to the account and claim the exemption. The money has to have been going in the account in the normal course of activities.
Cash From Injury Claims:
Cash proceeds from personal injury and workers compensation claims are exempt. Oklahoma exempts this money up to fifty thousand dollars. Its important to remember this represents pain and suffering money not putative damage portions of the injury settlement.
Commingling Exempt and Non-Exempt Assets:
If you take an exempt cash asset and mix it with a non-exempt cash asset you lose the exemption. This happens when you take the proceeds of an exempt personal injury claim or 401K retirement account and deposit it in to a non-exempt checking account. If you have a checking account with only the proceeds of an injury claim dont mix it with your personal checking account. Instead never deposit other money in to the account. Simply draw the account down. As to retirement accounts, the minute you take the money and convert it to cash the exemption is over.
Local Oklahoma Bankruptcy Lawyers Get the Exemptions:
Is Cash Exempt in Bankruptcy is a question best answered by a local bankruptcy law firm. National referral firms have a difficult time grasping what the Oklahoma bankruptcy exemptions are. They aren’t actually lawyers but rather simply refer your name out to other lawyers. In Oklahoma we use our states exemptions giving our residents a great chance to exempt many assets in their case.
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