What do you do with all the "extra" money?

[tempron]

The living on "cash only" lifestyle, well..has truly changed my life and view of money completely. In my adult life I have never known the true value of a dollar until I filed BK, and the I don't look at anything the same way regarding purchases, value, costs, etc. First I have learned what true needs are in life that actually make me happy, and discovered that I don't need much! Affluenza = Cured!

[debtmonster]

Hope you plan on buying this vehicle before you file BK as I don't believe there will be anyway you can exempt $10,000 in Cash. Don't you live in Florida and your Car Exemption is only $1,000 or am I wrong?

Luci

If you buy it before you go BK, they will take it because it will have too much equity. I am planning on buying the car many months after I file. That's when I can start stock-piling most of the money.

I am giving back both of my cars in the BK. Both of them have too much negative equity.

My plan is to get a new day job (I have none now) and save up cash. We're living with family now and will have no bills other than utilities, food, gas, car insurance, phone. No rent or mortgage. So instead of paying a rent or mortgage for the next 6+ months, we will be stockpiling that cash to go towards a brand new car. I am hoping to get a car no more than $17,000 to $20,000 out the door after taxes and then put the $10,000 down towards this. I have to put such a huge down payment because the interest will be sky high thanks to the bankruptcy.

I've already spoken with a couple car dealers. They said buying a car is no problem as long as it says "DISCHARGED" on the credit report.

Like I said in other posts, my lawyer thinks that I will be able to keep my car for a substantial amount of time. He will fight the lift on the automatic stay and keep me in the cars. That way I won't have to buy a new car within 30-60 days of filing.

I told him about the people on here having to give their cars back on day 61. I asked him how he was able to keep me in my car a long time and why the people on this forum are giving back their cars so early. He said that's because they attorney's for the people here are not fighting the stay. Most attorney's are lazy and will not want to go through the hassle. If I can keep my car from now until February, I should have a way to save $1,500+ per month. Rent + car payments would come out to $1,500. Since I'm not paying that, I get to bank it.

So far most of my money has been going to legal fees. I didn't make my car payment this month, nor did I pay on my Rooms to Go account, so that saved me almost $400 right there. I used that money to go towards my new lawyer this month.

[LuciluS]

Save the money and pay CASH for a car or use it for a HUGE down payment. That's what I am doing. I am hoping to have $10,000 down by early next year to put on either a Honda Civic, smart car, Toyota Yaris, Scion xB or something cheap.

Hope you plan on buying this vehicle before you file BK as I don't believe there will be anyway you can exempt $10,000 in Cash. Don't you live in Florida and your Car Exemption is only $1,000 or am I wrong?

Luci

[LuciluS]

You need to check with your Attorney to see how much money you can save and exempt. Also, if you receive a Federal Tax Refund and think you may have one coming in 2010 for the year 2009, it is important your Attorney try to exempt that money also.

If it comes down to only able to exempt your 2009 Tax Return, by all means, spend the money on household repairs and vehicle maintenance. We took are large 2008 income tax return refund and put new tires on both of our vehicles and also had our privacy fence repaired. We had plans to spend the rest on house maintenance, but, unfortunately, hubby was hospitalized for over a week and off work for almost a month. So if the Trustee wants to know where the money went, all we can say is it was spent to make the house payment, car payment and utilities.

I think States have different amounts of money you may have in your checking account on date of filing. That amount does not include any outstanding checks which have not cleared. If you file on a different date from the date of your Bank Statement, you will need to print a copy from your PC on the date of filing or go to your bank and get a copy from them.

We have basically used the Cash Method since last Oct. It was not easy, especially at Christmas time. The only presents we gave, were $20 to each of our 3 grandkids college fund and a $10 bill for each. We just told the rest of the family members we were broke.

Just received Friday an Insurance Benefit on the hospital bill in April. We owe the hospital $1,695.12 and that is after insurance pays. So guess, we will be putting that bill in our BK petition. After closing of our Bankruptcy, I may try to set up a payment plan, as this is the closest and best hospital and I'm afraid they will not admit us, unless it is an emergency.

Dh's pay has been cut as he is a Truck Driver and when there were no goods being made, there was no freight to be hauled. At least he got paid some monies each week. I'm on Social Security Disability. It was stated several months ago there would be no cost of living raises for 2010 which will be the 1st time in over 35 yrs. no raise. That tells me, we are still in a Recession, despite what the news media reports.

We will be filing our BK on 9/30/09 using Gross Income from Mar.-Aug. 09. Good Luck with your Bankruptcy.

Luci

[debtmonster]

Save the money and pay CASH for a car or use it for a HUGE down payment. That's what I am doing. I am hoping to have $10,000 down by early next year to put on either a Honda Civic, smart car, Toyota Yaris, Scion xB or something cheap.

[crescentmoon]

We've actually been cash only since last November (not by choice, but its been a good change!). I don't know how on earth we've managed to hang on this long, given how much our minimum payments have been (and our lawyer couldn't believe it either!). But, luckily, we haven't picked up a credit card in nearly 8 months.

Of course, I did just find that we had a couple of recurring charges on credit cards that we had forgotten about, so I just cancelled those, and I hope it doesn't throw us too far off course from filing. The charges were under $100 total, so I'm hoping we don't delay another month or two, while we wait for that magical 90 day period.

[Amy26]

I also thought we'd have sooooo much money. The mortgage on my house was almost 2k a month, I had at least 1.5k in credit card debt per month and I was paying 700 a month to live in my friends house (cause we have renters in my home). Then a car payment, insurance, groceries, home things, travel etc... So, when we stopped paying everything I thought we'd be rolling in money.

But then the lawyer told us we could go ahead and get own place to live (and to spend a lot on it!) so we did that... and now that we're living strictly on cash it seems like there is never enough. We have/had like no household items whatsoever... I moved to another country and then got laid off overseas and had to come back... so, had no money to bring my stuff back with me. Pretty much just the clothes on my back.

So, now we're struggling just to buy a vacuum cleaner... lol. We had to pay the lawyer for this and a lawyer for my husband's US immigration... my cat had to go to the vet last week, so that was 133 dollars.

When I was using credit it was just so easy to overlook the things you were charging. Like having emergency vet bills or a flat tire or just stuff you don't think that you are spending on when you use credit cards.

So, we're having a hard time adjusting to this and also trying to buy ourselves some furniture and household stuff.

In summary to a long winded post, you may "think" you will have lots of money left over... but really when you start living cash only you become sooooo much more aware of the things you need/want to buy.

[RackingJ]

This is funny!!! LOL I know exactly what you mean, we don't seem to have that either!


We didn't end up with extra money, we just were able to survive via cash for all the things cc paid for. Groceries I use cash, 2 teenage boys at home, need I say more? Gas for 2 cars and a pick up, cash for everything. Maybe at first I felt rich, but that wore off. Now I just feel like I don't owe anyone for buying food or all those other necessities. That feels pretty good.

That was us as well. I thought we'd be doing so much better not paying the $1100/mo in payments but life has a way of getting in the way of that. LOL

[justplaintired]

What is this extra money of which you speak?

This is funny!!! LOL I know exactly what you mean, we don't seem to have that either!


We didn't end up with extra money, we just were able to survive via cash for all the things cc paid for. Groceries I use cash, 2 teenage boys at home, need I say more? Gas for 2 cars and a pick up, cash for everything. Maybe at first I felt rich, but that wore off. Now I just feel like I don't owe anyone for buying food or all those other necessities. That feels pretty good.

I would say if you can you better not show too much money and not enough expenses or you will not be a C7. You need to live again, cable, home repairs. There is so much income that is exempt for normal living expenses, maybe you should look and see what the trustee considers normal, and start using your extra cash that way. You are allowed to live and spend money for "normal" living expenses. Phone, cable, internet, newspapers, entertaining (eating out), occasional movie, clothes, haircuts, school expenses if you have kids, the list goes on and on.

Enjoy life just use cash, it's ok.

[Amy26]

What is this extra money of which you speak?

[whipster1]

Just live like you are supposed to. Congrats on removing the yoke.

[keepmine]

That's all great suggestions.

And its not like we'll have thousands of dollars left over each month. We just won't be going more into debt each month. For the first time, we'll have some extra money each month.

Home maintenance is actually a really good suggestion. We have about $3000 of plumbing work that needs to be done.

And I like the idea of new clothes, etc.

The question is, what do you do with this money while waiting for Chapter 7 filing and the process. Wouldn't buying new clothes and getting cable raise some flags? Do you just take it out of the account slowly so as not to raise red flags?

You are allowed to live a reasonable lifestyle. You don't have to slowly take money out of the bank. It's permissible to write your lawyer a chaeck. It's OK to write the plumber a check.
Go ahead and get new clothes and basic cable.
Other reasonable expenses would be things like dental work you've put off. Take the family for eye exams and get new glasses/contacts if needed. Go to the doctor if you haven't been in awhile for physcial or any other needed treatment.
What about the car{s}. New tires , needed maintenance?
Back to the house-have your heating and cooling stsytem checked out. Any appliances need replacing/repairing? What about paint and gutters?
Also, ask your lawyer how much cash you can exempt. It'll vary by state.
I think you get the picture. It won't be hard to spend down if, that's what you need to do.

[bankruptsee]

We're making more money now than the last six months and it doesn't add up. Basically, because we're spending money on things that we needed all this time but couldn't afford.

[klandsb]

Living on cash only:

I have been living the "cash only" life since last SEPT when I closed all my credit cards.... Its amazing that before payday comes I am cleaning out the bottom of my purse and looking thru old coat pockets looking for change to get me thru till payday... Sad but true... Its all those things I use to use my charge cards for that come up that u dont think about... Haircuts, prescription medicine, dog vet bills if and when the dog might get ill, they all take a chunk out of that money you thought would carry you thru till payday...
JUST FOOD FOR THOUGHT !!!!!!

[aces67]

I thought that too at first and was excited but it turns out for us since we didn't have the money to pay the debts to begin with we still don't have any extra money either.