I need to do a home repair how do I pay for it?

[Kansas1960]

I don't have the cash. I can use my HELOC or a CA. I might have tax refund to pay for most of it but won't know for another month or so. It needs to be done soon. The cost will be 4,000. It is a foundation problem causing a leak. I was planning to file in July but could wait until December. Any advice will be welcome.

[justbroke]

This one is easy! Since it is a home repair, use your HELOC as it is secured by the same home you're repairing!

Are you planning to surrender that house?

[Kansas1960]

Now if I pay off the HELOC with my tax refund will it be preferential
treatment?

[justbroke]

Now if I pay off the HELOC with my tax refund will it be preferential
treatment?

It could be. The rules are generally that you were insolvent at the time (90 days before filing) you made the payment (transfer).

Why do you want to pay it off anyhow? Are your surrendering the home? Or, are you trying to pay it off, so that when you file, you can keep your home and not worry about the HELOC payment?

There are so many questions. Like, is there equity in the home? Does paying the HELOC have insider considerations?

[Kansas1960]

I am hoping my tax refund will cover the expense but I cannot wait for that or I would just use my refund to pay for it and be done with it. I am keeping my home since I have 50,000 equity in it and in Kansas home is exempt. All my debt is CC. So if I use a credit card and when I get my refund I could pay it off or I could use the HELOC and and pay that off with my refund. Or I could keep the debt and use the refund for more home repairs. I just want to make sure I don't do anything to make my situation more complicated. Thanks for your help!

[Help!]

You're not trying to discharge the HELOC, are you? It would be unwise to spend your tax refund during BK because technically, this can be property of the BK estate since it was money owed to you on the day you filed. The larger question is... how are you going to pay for things like this after your BK is discharged? If you don't have the cash for things like this and have to dip into a HELOC, it seems to me you may not have adequate cash flow to support owning the home. There are no do-overs after discharge and if your home loses equity and you have no savings, you're really screwed!

[Kansas1960]

I am not going to try to discharge the HELOC. I am going to have to get this fixed. I will probably file in July. Just want to know the best way to pay for it and not raise red flags. The only options are HELOC and CA. Tax refund will come in 2 months if I get one.

[HHM]

Bottom line, bottom line,

if you are broke and cannot pay for this repair with cash, you don't do the repair.