Spending excess????????

[lnemup]

Met with my attorney and the good news I qualify for a 7 even though I a good bit over the median.We are current on our home and looks like we are not going to file till Nov. and court date in Dec. He adviced us to stop makeing mortgage and credit card payments. My question is what to do with the money? Basically 5 months or no mortgage and credit card payments equal 15K? When I asked my attorney about it got the same answers i have seen on this forum. Dental work yes needed,eye surgery yes needed, my attorney fees so there goes another couple g's. Thats probably going to be less than half so what else are things that can be spent on? He also mentioned we were entitled to a family trip. We are not keeping our home so need for any repairs to house getting returned to mortgage company. Any help be appricated? Any ideas?Thanks

[keepmine]

You'll need a place to live. Security deposits, utility hookups, a mover.
Also, IRA's can be funded.

[JRScott]

Yearly physicals if you've not got them as well. By the time you rent a new place get dental/eye/physicals and pay the lawyer some of that will be gone. Car maintenance is another good area.

[lnemup]

Keepmine,
Thanks for the responce. Yes you are right but we are staying in our house as long as we can which attorney says jan/feb so aways away for a couple of those things. My wife does have an IRA which we took to our attorney will have to ask him about adding to it.

As I read other thread a couple more I have found are car insurance paid in full for year, wondering if this is a good thing or will raise the red flag. Also vehicle maintanence all have new tires but one could use a full tuneup.

Anybody got anything else?

I almost feel like this is a catch 22 stop paying your credit cards/mortgage but have no money in you account? How does this work?

Spnding money on cloths for the family, anyone have an idea of how much a month? School starts up hear in Sept. so new cloths are needed.Thanks

[Martha13]

Yes, moving expenses could take a big chunk out of that money. From what we've seen, there's often 1st and last month's rent, plus security deposit, higher if you have a pet. Costs associated with transferring utilities.. Then there may be a period of "double-payments" on certain utilities like electricty/gas, water, garbage at old house until is completely foreclosed, and new rental. There's $$ for the movers (or even a U-haul type place if you're doing it yourself--think of the cost of gas for that!). If you have an HOA, you need to keep those fees current until the f/c is complete. Even strange little costs to replace things you may have "built-in" your current home, that you won't have but need in the new rental. (ex: central vac vs. buying a new vacuum!). Just some things to think about. But I will say, taking a family vacation before settling into the world of post-BK sounds WONDERFUL !!!

[pa308]

Will you be using federal exemptions or your state's exemptions? Federal has wild card of amounts not being used by home equity that would allow you to have a few grand in cash to be exempted.

[sick of debt]

My attorney suggested an IRA as well. We plan on doing that. I will also use some money to pay things ahead. The insurance idea sounds good. I wonder if we can do that. It is strange, you try and save money, then you have to spend it.

[keepmine]

Keepmine,
Thanks for the responce. Yes you are right but we are staying in our house as long as we can which attorney says jan/feb so aways away for a couple of those things. My wife does have an IRA which we took to our attorney will have to ask him about adding to it

Nothing says you can't start making arrangements for your move in advance. Prehaps sign a lease effective for a move in date in the future and pay those deposits in advance.
Also, you could open an IRA as well. Many insurance products in the form of annuities are exempt in bk.
If you have a large freezer, stock up on meats and other frozen food.
Run all of our thoughts by your attorney.