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Spending cash the days before filing

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  • spr250
    I filed on 18 Oct. My atty told me if I were to do that, unless I was spending thousands before would be questionable but catching up on needed things would be ok. I usually like $600 of food in my house. Caught up on utilities. Have some vehicle maint. The trustee understands there will be catch up things that have been needed to be done. I think you would be perfectly fine with the cash you have and probably spent more then you had to. I even asked about the money I saved from not paying the extra bills being in my account when I have to turn in my current bank statements before my 341 meeting. I get to keep my taxes due to my wild card expemption my state gives. Sure you might lose that, but you are freeing yourself from how much in possible thousands of debt. For me, its about $100k, so even if I lost my refund, Im still coming out far ahead. Dont stress about it. Your lawyer said possibly, they wont really know until you file and list everything. All debts and all assets.

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  • mnmama
    started a topic Spending cash the days before filing

    Spending cash the days before filing

    We plan to file on Monday. Our lawyer has said that we are likely to lose part of our tax refund in April. The less cash we have in our bank accounts now, the more of our future tax refund we can exempt.

    We currently have about $500 in our bank accounts. We already did the car's service, bought glasses, did dental work, etc. I am debating if there's a point where it looks bad to have spent down our account so much, like you are trying to get rid of money just to exempt more of the refund. I'm wondering if I can participate in my kid's school fundraiser, sign the kids up for another community ed class, pay my $20 library fine, just keep chiseling away at the $500. My husband worries about us getting through the week until Friday's payday, but I am less concerned - my kitchen is well stocked, and I know my parents would give us $50 for groceries or gas if we needed it to get through the week. But is there an amount I should not go under? Or should I open an IRA and put $400 in there? That feels like trying to get rid of assets as opposed to normal everyday spending, and I feel like it would be viewed with scrutiny.

    Also, do I need to keep my Target receipts or is it a safe enough bet that the $150 I spent at Target is groceries for our family rather than purchasing luxury goods? Is there a way to get a copy of the receipt from Target if the trustee really wants to see what I bought? If we sometimes spent money on normal family type expenses that are not necessary - taking the kids to Dairy Queen, or ordering pizza - is that ever a problem?

    THANK YOU for your help.

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