Getting really nervous now . . .

[kathy4530050]

I've been reading a lot on this forum, have posted several questions of my own, and now I am SO NERVOUS about filing. When I last spoke with my lawyer, I was waiting on $22,000 in accounts receivable (I'm self-employed-sole proprietor and have earned almost nothing in the past 6 months but was waiting on some overdue payments), and he told me I should file on March 1st. Well, those checks have come in now and, from what I am reading on this forum, I am likely to lose the bulk of that money if I file next week. However, it is the nature of my business that my income can be very, very sporadic. It's entirely possible that I won't earn another cent for 6 months or more! If this money is seized, and nothing more comes in, I won't even be able to pay next month's rent or utilities or be able to buy groceries!

Here's what I see as being my options: if I file now, I'll lose most of the income that just came in, and if I wait, I'll likely fail the means test. I could wait 6 more months, of course, to file, but am concerned that by that time, I'll have law suits filed against me for non-payment!

Does anyone see any other options?? I can't afford not to file and it looks like I can't afford to file. Can I afford to wait? What to do . . .??!!

[fltoo]

You should wait and not worry or be nervous. If a company gets a judgment, so be it. You are self employed so they can't attach your wages and you have plenty of time to close all bank accounts if you see a judgment coming. It will be vacated when you file BK. Wait and use the money for living expenses.

Nothing to fear here at all.

[okiemom2008]

I've been reading a lot on this forum, have posted several questions of my own, and now I am SO NERVOUS about filing. When I last spoke with my lawyer, I was waiting on $22,000 in accounts receivable (I'm self-employed-sole proprietor and have earned almost nothing in the past 6 months but was waiting on some overdue payments), and he told me I should file on March 1st. Well, those checks have come in now and, from what I am reading on this forum, I am likely to lose the bulk of that money if I file next week. However, it is the nature of my business that my income can be very, very sporadic. It's entirely possible that I won't earn another cent for 6 months or more! If this money is seized, and nothing more comes in, I won't even be able to pay next month's rent or utilities or be able to buy groceries!

Here's what I see as being my options: if I file now, I'll lose most of the income that just came in, and if I wait, I'll likely fail the means test. I could wait 6 more months, of course, to file, but am concerned that by that time, I'll have law suits filed against me for non-payment!

Does anyone see any other options?? I can't afford not to file and it looks like I can't afford to file. Can I afford to wait? What to do . . .??!!

If the money has come in, how can they seize it? Can you put it in a IRA somewhere for now? I know there are fees and all but better than them taking it.

[kathy4530050]

Well, the money is sitting in my business bank account right now and, from what I am reading here if, right before I file, I have huge amounts of money going out of my account, the trustee will object. I have already written some checks to pay some back taxes, but it appears like there aren't many other places I can spend it. I can't transfer it to another account, can't pre-pay my rent or utilities, and can't pay back anyone I owe. I really need to take care of a serious medical issue, but don't even know how to do that if I can't prepay the whole thing. I'll go to the doctor for the initial visit and pay, then I'll file, they'll seize all the money in the account, and I won't be able to go back to the doctor for treatment.

Maybe fltoo is right. Maybe I just need to wait, live on the income, go to the doctor, take care of my health and let my creditors keep hounding me for awhile longer.

[fltoo]

Go to the doc and take care of yourself and pay him in full. It is not a problem. Nor is paying for living expenses, rent, utilities, food, etc.

The trustee is only looking for assets. If you spend the money on living, the trustee does not care. As for the phone calls, I waited two years, answered every call and just told them I was filing BK. My lawyer would not even let me give his name out until I filed the paperwork. It was no big deal, really.

You have no wages to attach. If a judgment occurs, you simply empty your bank accounts and pay everything with money orders. Do not be nervous, do not even think about it, just get the health care you need and file when the money is gone.

PS Do not put money in an IRA or SEP unless you do it regularly. It might not fly and I would stay under the radar.

[okiemom2008]

Well, the money is sitting in my business bank account right now and, from what I am reading here if, right before I file, I have huge amounts of money going out of my account, the trustee will object. I have already written some checks to pay some back taxes, but it appears like there aren't many other places I can spend it. I can't transfer it to another account, can't pre-pay my rent or utilities, and can't pay back anyone I owe. I really need to take care of a serious medical issue, but don't even know how to do that if I can't prepay the whole thing. I'll go to the doctor for the initial visit and pay, then I'll file, they'll seize all the money in the account, and I won't be able to go back to the doctor for treatment.

Maybe fltoo is right. Maybe I just need to wait, live on the income, go to the doctor, take care of my health and let my creditors keep hounding me for awhile longer.

We put all our extra money into an IRA right before(like a week) before filing. Lawyer said it was fine-they cannot touch it. I hope he is right.

Good Luck.

[kathy4530050]

Thank you fltoo

Bless you. You sound like the voice of calm and reason. This is exactly what I needed. I can wait. I feel better already.

Big hugs,

Kathy

[okiemom2008]

PS Do not put money in an IRA or SEP unless you do it regularly. It might not fly and I would stay under the radar.

Ok, this worries me. We had extra money from a house we just sold(it had a lien on it but we had extra money after paying it off) and we had our tax return and lawyer said to put it into an IRA. This is what we did-I am hoping that we will be ok.

[fltoo]

It could be a red flag if you don't contribute regularly, every year, every month, etc.

Guess it will depend on how aggressive the trustee is.

[okiemom2008]

It could be a red flag if you don't contribute regularly, every year, every month, etc.

Guess it will depend on how aggressive the trustee is.

I asked about this but he said it does not matter since they are exempt. We do not contribute regularly at all-this is the first time but we had nothing to do with the money so tried to exempt it since it originally was from a 401k that we cashed out to put a downpayment on the house we sold.

[kathy4530050]

Yikes! I sure hope you're ok! I would like to put some money in an IRA too, but actually, I have so many places it needs to go that I guess I am just better off waiting. I dont' see any huge sums of money coming in soon and if I wait, this could be a lot simpler.

Best of luck to you--I hope it all works out great for you.

[fltoo]

I asked about this but he said it does not matter since they are exempt. We do not contribute regularly at all-this is the first time but we had nothing to do with the money so tried to exempt it since it originally was from a 401k that we cashed out to put a downpayment on the house we sold.

If your exemptions covered the money, then there is no problem. But, from all I have read, even though retirement funds are exempt, if you do not contribute regularly, it could be problematic with the trustee if all of a sudden, you decide to put a chunk of non exempt money into a retirement fund.

I wanted to go this route, but my attorney nixed the idea.

[okiemom2008]

If your exemptions covered the money, then there is no problem. But, from all I have read, even though retirement funds are exempt, if you do not contribute regularly, it could be problematic with the trustee if all of a sudden, you decide to put a chunk of non exempt money into a retirement fund.

I wanted to go this route, but my attorney nixed the idea.

Great. Something else to worry about. Ugh I wish my lawyer would not give me the run around. I am going to be PISSED OFF if they try to take that money. I am shaking even thinking about it.

Thanks for the help!

[kathy4530050]

damn lawyers!

You know, based on your experience alone, I think I will make an appointment with a second lawyer to get another opinion before I make any more decisions. It appears that bad advice is everywhere . . . and we pay for it with money we don't have!!

[okiemom2008]

You know, based on your experience alone, I think I will make an appointment with a second lawyer to get another opinion before I make any more decisions. It appears that bad advice is everywhere . . . and we pay for it with money we don't have!!

Yep, I totally agree. We met with 3 lawyers I believe and this was the best out of the three. They all said different things. Just want to get it all over with and be done with this whole bankruptcy thing. Good Luck