Refinancing home before BK

[Sheenasmom2]

Hi. I have just gotten my divorce finalized and per my lawyers suggestion am in the process of refinancing my home to get my husbands name off of it. The problem is I will be getting a check back from the mortgage co for almost 3,000. I need that money desperately to fix my van, my sons and daughters car, and a few things on the house. If I just cash the check but don't put it in my account, will they see it? I plan on keeping receipts and everything anyway but my father is very concerned about it. I have a message in to my lawyer but he hasn't called back yet.

Also, if I have about 600 in NSF loan money, do I HAVE to include that on the BK. I am in the process of making payments on it will have it paid off in a few months but not before the BK is final. I need the money from the mortgage refinancing to fix all the things my husband left undone so I can't really put it to bank NSF money. I feel so frustrated like I am never going to see the light of day again.

My lawyer says that they may not do a chapter 7 because of all the overtime money I made last year. I told him I didn't have a choice, it was required. But he says because of that, even though I am now a single mother with 4 kids, that they may only do a chapter 13 for me. I feel like somebodys punching bag. First the exhusband, not this!

Please help with any advice. I would sure appreciate it. Thanks

[accentone]

Sheenasmom2,

I'm sorry to hear about all your troubles. Life sure can dish it out all at once, sometimes.

I'm not sure the answers to your questions, but I can share some of my own experiences, thus far. We had to borrow from our life insurance (4800) to cover the cost of lawyer, and to play catch up on all our bills. I went back and forth on whether or not to cash that check at the bank it came from, or to just go ahead and deposit it and use it. I decided, in the end, to put it in my bank and write checks or do money orders. I did it this way because I didn't want there to be any sense like I was trying to deceive anyone. I think, as long as you keep receipts for car repairs and whatever you need, it should be okay.

About the 600 in NSF to your bank, I do know that you should not pay more than 600 to an unsecured creditor less than 90 days before you file bankruptcy. Something about preferencial pays or something like that.

Our lawyer is also concerned we may have to go to chap 13 because of too much $$. All you can do is file, and see what happens.

Best of luck and don't worry, you will see the light of day. It's just around the corner.