Turning Around

[I Is Broke]

I received my Discharge in the mail this week. I had over $45,000 in Credit Card debt and only have an income of about $1300 a month and a rent payment of $895 a month.

It was suggested to me that for the first six months I should not keep more than $1000 in my bank account. Why is this? What happens if I have more?

I was told that I will be watched like a hawk by the courts. Why? For how long?

Should I have my paycheck direct deposited into my bank account? or should I still keep it under the mattress?

When is it safe to start saving money again?

I had a friend work with me on a budget and I have been following it faithfully since about December. I am on track to get back on my feet and to stop spending. My friend told me that I should have six months living expenses in a bank account as fall back money. She then said I could start spending money on myself again.

[HHM]

Whoever told you all that is overly cautious. Once your case is discharged, the Trustee bascially forgets about you, no one is watching your accounts.

If all you have is your paycheck, their is no reason it can't be direct deposited.

Incidently, if you make only $1300 per month, and pay rent of $895, exactly what is going to be the source of savings?

[I Is Broke]

My mom is helping me till I get back on my feet. She is gifting me half my rent each month. So, there is a little extra now that I can save and get some money in the bank for emergencies.

My goal is to get at least $3000 saved in the bank by the end of the year.

[vic6string]

stop worrying

Once you have your discharge, from what I understand, you are done. You can win the lotto the next day and keep the money. After our discharge, we started saving money in our accounts (since we no longer had to send that money anywhere) and a few months after the discharge, we pulled some equity out of our home to have cash in hand for emergencies. You need a cash reserve because you aren't likely to get much credit for a while, and if you do the first few creditors will eat you alive (we needed a new car a couple of months after the discharge and got one at 15.45%...ouch). As for the rent situation, you have way too high a rent for your current income level. Unless Mom is planning on footing the bill indefinately, you should consider a roomate or a cheaper pad.