spending over the next 90 days...

[CurtInKS]

We are 3 months out, from filing Ch. 7, and I am not sure how to spend our money, for these next 90 days or so. We only have $60 on one credit card, and were going to get a tank of gas with it. After that, there will be no more credit card activity. Is that ok? I thought I had read somewhere, they only look back 90 days, so it would only be the one charge for gas.


I have two purchases, I am going to make, in the next 90 days, that could be of concern. About 2 months ago, I ordered a chair. We have a baby on the way, and I ordered a glider, and paid half down. It's going to be in, in about a month, and there's $375.00 due on it. Will that be a concern?

Also, my daughter's birthday is coming up, and we have set up a birthday party for her, at a local water park. I haven't paid anything on it yet, and it'll probably be around $300 to them, for that. This will be late July. Is this something they will look at?


I just want to make sure I do all this right, over the next 3 months, so things go smoothly. Any other tips as to what we can, and cannot buy, in the next 3 months? Thanks again, this site has been amazing.

[BKTango]

Not to be rude by any means but you are about to file bankruptcy and you want to spend $300 just to rent a place for a childs birthday?

The 90 day rule if for new credit purchases (charging onto credit cards). That you do not want to do, as the creditor can claim fraud on that charge.

You can spend your cash however you NEED. Not want but need. Use it for living expenses, medical care, grocercies, clothing, etc. Unless you have a very thorough trustee who looks through everything with a fine tooth comb most likely if you use cash it may never even be known you spent that money on non-necessity items, especially since it will be before you file. BUT if you have a trustee that wants to look at your bank statements and receipts from the 90 days before you filed up to the date of your 341 then there might be an issue.

Like I said I am not trying to be rude but it's obvious you might want to look deep into your family needs and wants. Clothes, food, etc....needs. A chair and a party is technically not a need. Look at it this way, on the expense schedule there is no room for pet expenses or childrens presents for birthdays and holidays, they view that as non necessity and you have to "work" them into other categories.

[whatamess]

My kids didnt have a big birthday this year. We had a small cake & ice cream gathering at our home. I didnt see that a $$$ birthday would be looked upon as a welcome expense to the trustee. They were disappointed but thats life. I figure this is a good time as ever for my kids to see the value of money and that we CANT keep up with the Jones's or buy/have/get all we want. In the end they have not suffered near as much as you would think.
They have also forgone soccer, t-ball and dance class unlike thier pals. They did not get the wanted Ipod, Wii, or electric scooters for gifts like thier pals. I'm happy to report that there has been No breakdowns or ADD diagnosed, they are still well emotionally.
This will all be over soon enough and life will go on.
Why not just have a few pals over for pizza and a movie? Maybe you can have the waterpark party next year?
The chair will have to fall under exemptions I would guess. That shouldnt be a preferential payment if its under $600 I would think.
This isnt an easy time, but it will pass. Good luck.
WAM

[CurtInKS]

Not to be rude by any means but you are about to file bankruptcy and you want to spend $300 just to rent a place for a childs birthday?

The 90 day rule if for new credit purchases (charging onto credit cards). That you do not want to do, as the creditor can claim fraud on that charge.

You can spend your cash however you NEED. Not want but need. Use it for living expenses, medical care, grocercies, clothing, etc. Unless you have a very thorough trustee who looks through everything with a fine tooth comb most likely if you use cash it may never even be known you spent that money on non-necessity items, especially since it will be before you file. BUT if you have a trustee that wants to look at your bank statements and receipts from the 90 days before you filed up to the date of your 341 then there might be an issue.

Like I said I am not trying to be rude but it's obvious you might want to look deep into your family needs and wants. Clothes, food, etc....needs. A chair and a party is technically not a need. Look at it this way, on the expense schedule there is no room for pet expenses or childrens presents for birthdays and holidays, they view that as non necessity and you have to "work" them into other categories.

I realize that neither of those expenses are true needs, that's why I asked. They were both purchase we commited to well before we started contemplating bankruptcy.

As for the introspection, trust me, I've done it. We don't eat out, we dont' have cable or internet. No home phone. I haven't seen the inside of a movie theater in years. We've cut down, about as far as we can. Like I said, these were things we committed to, before we started this whole process. We've done away with about everything at this point, but a chair to rock my new baby to sleep in, and a nice birthday for my other daughter, are 2 things I do want.

By the way, no offense taken. I fully understand why you said what you said. I am horribly ashamed that I am in this position, and am reminded of it every day. I figure I am only human. Thank you for the response.

[CurtInKS]

My kids didnt have a big birthday this year. We had a small cake & ice cream gathering at our home. I didnt see that a $$$ birthday would be looked upon as a welcome expense to the trustee. They were disappointed but thats life. I figure this is a good time as ever for my kids to see the value of money and that we CANT keep up with the Jones's or buy/have/get all we want. In the end they have not suffered near as much as you would think.
They have also forgone soccer, t-ball and dance class unlike thier pals. They did not get the wanted Ipod, Wii, or electric scooters for gifts like thier pals. I'm happy to report that there has been No breakdowns or ADD diagnosed, they are still well emotionally.
This will all be over soon enough and life will go on.
Why not just have a few pals over for pizza and a movie? Maybe you can have the waterpark party next year?
The chair will have to fall under exemptions I would guess. That shouldnt be a preferential payment if its under $600 I would think.
This isnt an easy time, but it will pass. Good luck.
WAM

I hear ya, WAM. I am guessing that the birthday party will have to be put off, for a year. The other stuff, my daughter doesn't think much about, so she doesn't miss it. The only thing she still does is gymnastics, and her grandma pays for it. Material things have never been a top priority. Thanks for the reply.

[BKTango]

There's no need to be ashamed or feel shame. Trust me. I only said what I said because I have been there. We all have. It's a hard reality check, but it's also a business decision. You need to remind yourself of that daily. When you start feeling shame, just shrug your shoulders and say to yourself " hey it's just business." Believe me, you will come out on the other end of this much more appreciative of what's really important in life and instead of feeling shame you will feel happiness. You and your family will get through this just fine. And quite possibly the best gift you could give to your daughter, is the financial freedom and stress free life you are seaking.

[imbroke2]

I know I would never spend $700 on a glider. I think I got mine for a hundred or so. You need to start really shopping around. We have cut out birthday parties all together. We do something special with the family; my oldest is having her birthday this weekend and she wants to go to the Olive Garden and to the show (matinee of course!). What I'm basically saying is that you have to think really long and hard at what you really want. YOU want the b-day party for your daughter. How old is she? Does she want that too (as I suppose most kids would) but what about a sleepover instead? I know it may sound harsh, but you have to let reality set in and start thinking. BK is a serious thing and if you're serious about it, then re-assess your situation. Good luck.

[SinkingFast]

As others have noted, you're in a time period of "gut check". The transition from "life as it was before" to real life is tough. It's really easy to lapse into old habits. Especially when it's a special occassion for your child.

If you feel compelled to go thru with the Birthday party as scheduled, that's something I personally would pay for in cash. Take a little extra cash back here and there when you buy groceries or other necessities. Put the cash in an envelope to pay for the Birthday party.

I, myself, would not want a $300 "charge" from a Water Park on my Debit Card showing in my bank statements in the months leading up to filing BK. Definitely not something I'd want to have to explain to the Trustee.

The chair,........... I'd be checking to see if I could cancel that order and get back most, if not all, of my deposit. The $375 more you owe may be a car repair, or an ER visit, that's coming and you just don't know it yet.

[CurtInKS]

At this point, I think the party is out. We'll figure something else out. The chair, I called and we eat $375 if we cancel the order, so I am going to just tuck back a little money here and there, and pick it up late, and pay cash for it. Did I overpay? Probably. Sometimes, I find myself in these positions, I think in part because I've cut back so far, at this point. Bologna sandwiches everyday for lunch for weeks, wearing the same 2 pair of jeans to work, for the past 2 years, stuff like that, starts to wear on a guy. So I splurged on the most comfortable chair I've ever sat in, in my entire life.