Chapter 7 advice please

[bodezeffas]

I live in California and I lost my job about 2 months ago and I received a severance check for 20k paid in one lump sum (much less now that I've been living out of it). I am married with three kids and have property that I owe 800k on and is only worth about 400k now. We have about 75k in credit card debt and are current on all payments to everyone. We are looking for a place to rent (we know we will lose the house).

We really don't have any pricey items in our possession (basic furniture, dining room set over 8 years old, 3 Guitars all valued under 1k each, and a few DLP flat screen TVs bought over 3 years ago). I bought a car but I owe pretty much 100% on it (maybe 1000 dollars in equity). We have a second car with 170k miles on it.

1. How much money should I have in all my accounts when I file(maximum)?

2. If I pull cash out of the bank before I file will they ask for proof that it was spent?

3. Can I keep my accounts such as rent, PG&E, Comcast, water, garbage and cell phones and pay them from my bank account?

4. Can I hold onto unemployment checks and cash them after my Bankruptcy is discharged?

5. Will they contact my landlord if I am current on paying my rent?

6. Will they take any money from my wife's check if we need it to make ends meet (she is now the sole provider)?

7. should I fall behind on payments for a few months before filing, or file the second I know I will be unable to pay?

Any insight would be great.

[AngelinaCatHub]

I live in California and I lost my job about 2 months ago and I received a severance check for 20k paid in one lump sum (much less now that I've been living out of it). I am married with three kids and have property that I owe 800k on and is only worth about 400k now. We have about 75k in credit card debt and are current on all payments to everyone. We are looking for a place to rent (we know we will lose the house).

We really don't have any pricey items in our possession (basic furniture, dining room set over 8 years old, 3 Guitars all valued under 1k each, and a few DLP flat screen TVs bought over 3 years ago). I bought a car but I owe pretty much 100% on it (maybe 1000 dollars in equity). We have a second car with 170k miles on it.

1. How much money should I have in all my accounts when I file(maximum)? Less than $100.

2. If I pull cash out of the bank before I file will they ask for proof that it was spent? Yes. Spend it on essentials. Food, clothes, rent, fuel to find a job, and the likes.

3. Can I keep my accounts such as rent, PG&E, Comcast, water, garbage and cell phones and pay them from my bank account? If you wish, but I would lower the balance to those essential items mentioned here, and keep good records from here on out.

4. Can I hold onto unemployment checks and cash them after my Bankruptcy is discharged? Absolutely NOT! Do not hide ANYTHING!

5. Will they contact my landlord if I am current on paying my rent? Probably not.

6. Will they take any money from my wife's check if we need it to make ends meet (she is now the sole provider)? Not enough info. Is she filing also? I doubt that anything would be taken just to keep house and home running.

7. should I fall behind on payments for a few months before filing, or file the second I know I will be unable to pay? Fall behind and not throw good money after bad. Use this money for essentials listed above and your legal expenses.

Any insight would be great.

More info would help for good input. 'Hub

[music12]

unemployment is generally exempt BUT open a bank account JUST for unemployment compensation - don't put in that account ANY other money. maybe even have it directly deposited there so the source is clear. then it should be safe.

also, i believe you are under no obligation to actually cash the checks within any particular time period. you can keep them as checks (though checks do expire within either 3 months or 6 months). but in your petition you would include them as (exempt) assets. not cashing them is essentially the same as keeping them in a separate account as far as exemptions are concerned.

[SocalBroke]

Also keep in mind that California has some of the best personal exemption laws around with a very large wildcard ($21,000 - $22,000) if you are not keeping your house. I would definitely seek the advise of a lawyer (get a few opinions from the ones that offer a free consultation) before blowing through all your severance pay.

[OhioFiler]

I absolutely would not file BK while I was unemployed. You'll be in big trouble post-bankruptcy if you don't have a job and a budget you can live within.

I would continue to live in the house without paying the mortgage until they kick me out.

I would not pay a single dime to any more creditors unless you own a car you need to keep the payments current on to avoid repossession.

[bodezeffas]

I absolutely would not file BK while I was unemployed. You'll be in big trouble post-bankruptcy if you don't have a job and a budget you can live within.

I would continue to live in the house without paying the mortgage until they kick me out.

I would not pay a single dime to any more creditors unless you own a car you need to keep the payments current on to avoid repossession.

My wife's salary plus my unemployment is plenty for us to make it fora while. Getting an place pre-bankruptcy is key so we can get into a good area and not pay through the nose.