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

[booboo]

Your cash balance is only on the day that you file, however some have said that they will look at your Bank Statements at your 341 meeting. At my 341, the Trustee only was interested in seeing the statement printed out on the day of my filing, then he gave it back to me, as well as my Tax Return Copies.

My understanding is they can only do the 6 month look back from the day you file and going forward is not an issue, that is of course he decides that you did not qualify on your filing day based on your filing documents.

Also, my attorney hoped to get a certain Trustee and we did and was relieved, so a lot has to do with the Trustee apparently.

BooBoo

[debtmonster]

What I want to know is what triggers the court to know that you have all of this "extra" money that people seem to talk about after their bankruptcy is over and worry about you going into a Chapter 13 after you've been discharged from a 7.

How does the court know? Are they secretly polling your checking account to see if you have money left over every month after you're discharged?

I really don't have much left over only for the fact that we had 3 incomes before. Now we only have about 40-50% of the income we had in 2007. If I had the original incomes back, we could have a few grand extra like others here have said.

I am just wondering... let's say I go out and buy a car for $7,000 cash a month after discharge because I managed to save up or borrow cash from a relative. Is the court going to write me and say, "How did you buy that car and get it titled in your name only 60 days after your discharge?"

How would they know? If you had to furnish copies of your bank statements prior to your bankruptcy and you're no longer furnishing them after the bankruptcy, I don't see why people scare people in making you think you're going to be in trouble just because you have "extra" money left over. I thought as long as you are under the median when you file, then you are safe. Correct me if I am wrong and show me a few real live examples if you know. I am sure lots of people would like to know about this if it's possible.

My attorney told me I could buy a car now, but to make sure that I don't have too much equity in it and that I would be better off waiting until November. After reading a few posts on here, I think I am going to simply wait until the last possible day when the bank finally gets around to actually coming and take the cars. We have 2 cars financed by 2 different banks. So if one car gets taken 30 days after discharge and the next one goes 70 days after discharge, then I will try to buy a car on day 70 or 71... because public transportation = NO FUN.

[needachance]

See, in Colorado I think it is 300 is the cash exemption. We are wondering the same thing. We have to wait to file because my husband is a seasonal employee and goes on job attached unemployment in the winter so we have to wait until he is making good money again in the spring to file because we cannot have the money we always save for winter in our accounts or it will be taken. Fresh start indeed!

[OhioFiler]

We keep it in our freezer in Louisiana! ;)

LOL. He received quite a prison sentence for that!

[LSUTiger32]

zero is INSANE. what a fresh start it gives you with zero money. they'd better not complain if people over there end up with some untraceable cash under their mattresses.

We keep it in our freezer in Louisiana! ;)

[music12]

zero is INSANE. what a fresh start it gives you with zero money. they'd better not complain if people over there end up with some untraceable cash under their mattresses.

[LSUTiger32]

Good point there by BooBoo, in Louisiana (god love it) we have a nice fat ZERO DOLLAR exemption for cash.

[booboo]

It would depend on your State Exemptions. In Oregon you can have up to $7500 cash on hand that is exempt. Check on your State Limits.

BooBoo

[LSUTiger32]

Yeah, incase I didn't make that clear.....spend the money right now on living expenses. You don't really want to show up at the 341 with $5K in the bank. That could end bad. I had well over $2,000 in payments per month that I am not making now but I did mine fast. I can see if you wait 6 months say that you would have quite the little war chest built up!

[needachance]

You cannot save before your 341. They will take what is in your accounts and they ask about cash on hand and it probably isn't in your best interests to lie about it to the trustee.

Stock up. Get medical/dental/vision care. Update the computer. Buy some shoes for winter. I actually bought my kids GOOD school supplies for the first time in 8 years!

[inacorner]

When I'm all said and done I'm gonna relax. Also get back into the FX market.

[booboo]

Just Start Saving, Like you never saved before.....

BooBoo

[CindyLou]

In addition to home maintenance.....go to the dentist, get new glasses, bring the pets to the vet...buy a better mattress....do the things you have probably been neglecting over the last few years! It's amazing the things we neglect just to pay our credit card bills!!

[LSUTiger32]

We had the same "problem". Of course dropping $1,400 on the attorney helped solve that problem a little and we are now way ahead on the bills we are keeping instead of way behind. For instance, I don't owe a house payment until 10/1 and I don't have a bill due until 11 days from now. We used to be 11 days behind on 11 things!

We also used some of the extra money to stock up on things like groceries, paper goods, etc., things that they won't possibly come after.

[OKBK]

I donate my extra cash to a safe.