Last questions before filing

[southernbelle]

I know I've been a HUGE pain in the tush, but I have a couple of last min. questions before filing.

The atty. has almost everything he needs and I need to make sure all my checks cleared the bank. I slipped through the cracks and the IRS did send me my tax refund ($3500), therefore I wont have to borrow and can use some of that money to pay balance to the atty. (I will have to give up the state refund since the IRS haven't filed a lien yet and I tracked down my local IRS rep and she said she wanted to meet with me in person prior to taking any action on my acct. - about 2-3weeks.) Thank God. That gives me a little time to act before hand. WHEW! Anyway...

In addition to car repairs, food, tires, and paying up this months bills, can I use a small portion of the refund to buy work clothes and shoes (about $300-$400)? I've heard lots of folks mention that it is okay to buy clothes for their kids, but I don't have kids and need to replace worn out clothes for work. (I plan to keep receipts for every dime spent.) And should I keep it under a certain amount?

Since I will probably be an asset case, if discharged and waiting for the case to close, does that mean I can start rebuilding credit and can apply for a new credit card after the discharge? I'm a little confused about what I'm allowed to do or buy while the case is still open (Don't want to cause waves)?

Thanks again. Hopefully the next time you hear from me, I will have finally filed. It's been a long hard road.

[JRScott]

I wouldn't go overboard with clothes purchases. They might draw attention, however I'm not sure what job you do so it might be in line. If its been a while maybe buy one or two outfits. I wouldn't buy super high end clothing though.

Once you are discharge you can if you want apply for another credit card. Closing of the case is just a technical function of the case, some jurisdictions do both same day some do closings only once a week or month.

[gophermn]

If you are keeping your house and/or car (like I am) than make sure you get the car and mortgage company to send a letter of reaffirmation to the attny, court and/or credit agencies. I had that done because like I said, I am keeping both so I might as well get credit on paying the debt ontime.

As for the clothes, etc - JRScott is correct. If you can hang onto most of the refund that would be great. I went out and used some $$ for new shoes for work and actually kept the old shoes showing them how the soles were literally falling off. But I figure after filing I can wait out the storm for 90 days before buying a a few shirts/slacks.

I think you will feel better by holding out, rather then spending the money hoping nobody asks about it.

[southernbelle]

Thanks for the advice. I think I'll hold off on buying some new stuff since the old stuff is wearing out, but not completely shot yet.

Also, since my car is paid off and the mortgage is the only other thing of value I own, is it best to sign a reaffirmation agreement with the mortgage companies since I plan to keep the house or what happens if they don't send me one, can they foreclose if I'm late with just one payment or does it matter at all? Is it best to ask the atty to have them send one up front just in case?


Hoping to file Monday!!!
Finally!

[gophermn]

Yes by all means consult with an Attny. Call the car & mortgage company and ask them to sumbit the letter. Some mortgage co will not do it unless requested (so I was told).

And its best to not fall behind on your payments with the house. First you dont want to give them any reason to not reaffirm and second you dont need the Trustee asking about it. In todays market the last thing the mortgage co wants is your home (trust me) - but missing payments is like playing at the roulette table at a casino.

Good luck!