Currency in the Bankruptcy Context

For most debtors who are filing bankruptcy, there is no benefit to holding currency versus holding funds in a bank account. All assets, regardless of form or location, must be disclosed on the bankruptcy schedules. In that sense, currency in a safe deposit box, a mattress or buried in the back yard is treated no better or worse than funds held in a bank account. The same is true of precious metals. There are instances where it is better for a debtor to not have funds in a particular depository account, such as when the debtor owes that particular depository institution on a debt that will be impacted by the bankruptcy filing.