I realize that you can not pay one or two unsecured credit cards and not pay the others, but what about secured loans? For example, I received a lump sum at the close of my last job and went on medical disability. Both of our vehicles have negative equity based on "trade-in" value. Can I pay ahead on these? Most of the money will be going to pay estimated taxes, but I still might have as much as $2000 dollars extra unless I wait another 2 months and put up with all of the credit card companies calling. Any ideas? TIA.
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First of all, have you already filed? Which chapter? When did you file?
Secondly, do you want to keep the cars? Or are you trying to get rid of the cash so that the trustee can't get to it? -
I have not yet filed. I plan on filing chapter 7. I want to keep the cars and don't want the trustee to get the money. I have not yet filed. Thank you for your response.Comment
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I'm not a lawyer or paralegal, but common sense tells me that using that money for anything other than debts that would not be discharged through bankruptcy (like taxes within the last three years, student loans, etc.) is going to put up red flags. If you file Chapter 7, you will still get to drive the cars as long as you keep up the payments. In addition, you can choose not to reaffirm the debts and surrender the cars when you are ready. Even spending that cash on student loans and then immediately filing bankruptcy may still bring up red flags. I would consult a lawyer if I were you.Comment
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Well.. first of all Art.. where do you live and will you be using state or federal exemptions? What are the exemption amounts for vehicles? For cash on hand? Do you have a 401K?
You don't want to pay your cars off and then have too much equity in them because of that.. the trustee will snap them up or make you pay him the difference.
Do you own a home? Now would be a good time to "fix" anything that needs it.. structural stuff, the plumbing, the sidewalks, electrical, septic system.. you get the idea. How about those cars? Do they need repairs? Tires? Tune-ups? You can easily put that money into exempt property to make the cash exempt, too... Speaking of which- what, if any, are the cash limits where and how you'll be filing?Comment
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I live in IL. I do not have a 401K. I do not own my own home. The cars are 2 years old, but extremely low mileage and don't need anything.
I should have been making estimated taxes, but have not made a payment for this year yet. I think that I will bring them up to date. That, plus my attorney's fees and court costs will eat up most of it. I had forgotten to figure in atty. fees and court costs on my first post. Thanks,Comment
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