If I’m a public service employee getting a cash payout for vacation credits, can I exempt that cash in a Chapter 13?
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If I’m a public service employee getting a cash payout for vacation credits, can I exempt that cash in a Chapter 13?
I will be filing a Chapter 13 this summer right after I retire from a public service position with the state. I will be receiving a cash payout for my vacation credits. Can I exempt that cash or will the exemption change once the credit is converted to cash?
Asked on April 16, 2012 under Bankruptcy Law, California
Answers:
Mark J. Markus / Mark J. Markus, Law Offices of
Answered 12 years ago | Contributor
There isn't enough information to answer your question. Moreover, exemptions usually aren't an issue in a Chapter 13 case; it only affects how much you have to pay out through your Plan. You have approximately $20,000 of exemptions under california law that you can take on any assets. I don't know if california exemptions apply to your case, or what the amount of your cash payout is.
Also, if you receive the payout within 6 calendar months prior to filing your bankruptcy case, that may be considered income and could factor in to how much you would have to repay in the Chapter 13 as well.
You should consult with a bankruptcy attorney in your area to get more specifics on your situation.
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