Wages and Bankruptcy

What is the name of your state? PA

We might need to file a ch 7 bankruptcy if we lose a law suit related to an accident (if the amount demanded is higher than our insurance limits). There was NO DUI or malicious conduct involded.
My husband and I own nothing besides our old Buick and some of the furniture, the appliances, and other stuff in the house such as clothes, 2 old computer and the kids toys and baby gear (we have 3 kids)
We would probably choose to use the Federal exemptions, so we are not worried about losing the little we have because it is all probably.
What I don't understand is: On the list of federal exemptions, WAGES are listed as having no exemptions. What does that mean? Would my husband wages at the time of the bankruptcy be totally garnished? Or do we get to keep them to pay our expenses that month? Who determines how much we get to keep in relation to our exepenses?
What about FUTURE wages - are they safe? Or would some of it be garnished forever??
Until when after filing bankruptcy are we supposed to declare what we earn and own?

Wage, that deals with accrued wages.

That's why you file on payday, after spending the current check.

Withdraw all cash to pay all your monthly expenses, food, rent, gas, insurance, ect..

in the real world most people get paid bi-monthly or every two weeks. so even if they file on a pay day, they've still got at least one previous week of wages that have been earned, but unpaid. trustees generally aren't going to mess with that week of earned, but upaided wages, unless it's over a grand or more (anything less isn't really worth the trustee's effort).

Thank you.
About accrued wages:
All of your accrued wages which are not going to be spent on basic living expenses will be taken? Or is there a percentage maximun that can be taken??

No you would use the wild card to protect ($9650).

[Ladynred]

First of all, that wage exemption, or lack thereof, rarely comes into play in a Ch 7 case. They are NOT going to take your paycheck, that's not how CH 7 works. If you have to pay the Trustee some amount of money to redeem property or payback on a preferential payment, then the Trustee COULD garnish wages to get that money from you. Doesn't sound as if that is your situation.

Neither is the Trustee going to drain your bank account. While it IS best to file when your bank balance is at its lowest point, Trustees know that many people have direct deposit and that the listing of your expenses will either meet or exceed the amount of money you might have left in the bank. The Trustee would be interested in what your bank statement showed when you filed - so yes.. time your filing to show the least amount of money.

Is it true even in the case of a law suit?? I thought the judge could order garnishment of wages and bank accounts (and the bankruptcy would only protect some of it)

[Ladynred]

In the case of a lawsuit, wage garnishment is NOT allowed in PA - one of 4 states that do not allow wage garnishment - lucky you.
However, siezure/garnishment of bank accounts IS allowed. If exemptions cover cash in the bank, then you get to keep the exempt amount - a creditor can grab for the rest.