FINALLY...A lawyer!

[nazstar]

I interviewed another lawyer today and feel really good about it. He's been doing bankruptcies in our county for 25 years and was really down to earth. His office was a dump, but he was organized, gave me a price, and answered all my questions on the spot. I'll post what he said later in case it would be of use to anyone, but I gotta feed my little bean her dinner now!

[nazstar]

Ok, so here is the plan. I will collect my bonus in February and quit on March 1st. Florida allows head of household to bank 6 months of wages in a separate account - it can't be commingled with anything else. So, he told me to bank the entire bonus and any other wages I could over the 6 month period. Ideally - live off my husband's salary as much as possible for the next 3 months until I quit. At that point, my husband becomes head of household so we bank his ENTIRE salary in a separate account and live off my wage account while we wait 6 months for our income level to drop off. By the time we are ready to file, my account should be almost zero and his should be as close to 6 months of wages as possible.

In the meantime, don't pay the mortgage or any unsecured debt. Since we have one car about to die, we should by a new car ASAP. He told us don't put any money down as we are only allowed $1000 equity in the car, otherwise, we are dipping into our other personal equity limits. Since we are walking away from the house, we each get a $4000 personal exemption in Florida. That totals $5000 each for our personal property which clears all our belongings.

Other recommedations he made:
- He wants me to show up at the meeting being the "picture of Madonna and baby". Since I will be a new SAHM, he wants them to get the point that I won't be returning to the workforce anytime soon. Apparently, he had a case where the wife was laid off for 4 months, they filed for 7, but she told them in her meeting that she was starting a new job in 2 days - they forced her into 13.

- Everything we buy from here on in should be paid for with a check or debit card, keep all receipts so nothing gets questioned. Try not to use cash, no checks payable to "cash". No extravagent expenses like vacations, etc or else they will be seen as bad faith dwindling of assets.

- Since we will be close to the cutoff for Chapter 7, no overtime work for my husband for the 6 months.

- I can't pay back my family members with my bonus in February because it will be a preferential payment. But, with the money we are allowed to stash in our "wage account", we can pay them once our discharge is complete.

- He said the banks are so backed up in Florida that it will be at least May until they start foreclosing on the house. If I had known that, I would have stayed here longer instead of moving this weekend, but oh well...

- Keep up payments to non-dischargable debts such as back taxes and my student loans. However, do NOT pay more than the minimum or it can be seen as preferential. Also, keep up payments on my car.

[keepmine]

And that, is why you use a lawyer for cases that are not routine.
Good luck!

[MomIcantFindmy]

Good feeling to have a plan!

I hired my lawyer last week, after 3 interviews and sitting through BK court to see how they perform in court. It is a good feeling to finally have someone working for you. We are trying to hold out until Feb to file. I just recieved a notice from my last employer that they are dispersing my 401K to me because it is under $1000. I plan on getting my side door on my car fixed (teenage daughter backed into it 6 months ago and it was only $550 to fix so I didn't claim it on insurance). I am hoping that the BK court doesn't have a fit over how I spent the money.

[nazstar]

My "wage account" will be pretty significant because of a yearly bonus and we need to dwindle it down to zero in 6 months without raising any red flags. I plan on doing this by stockpiling pampers, formula, groceries, taking all pets to the vet for checkups and shots, getting new eyeglasses, having my husband finally get his dental work done, and paying my car insurance for 6 months up front (as I've always done). Also, I am going to prepay our renter's insurance for the year, get my car's rountine servicing, top off our sun passes for tolls, buy neccesary items for the new baby such as a crib, stroller, car seat. IF there is a balance left after all of that, I am going to throw it in a Roth IRA. The other idea I have is to make a quarterly estimated tax payment to the IRS - which I don't need to do, but will help reduce the taxes due at year end - thereby giving us a potential refund after the bankruptcy is finished. I have to check with the lawyer on that one though.