spending my tax refund

[okane]

Ok here is what I am planning on doing, just wanted to get any imput if this will be a problem in any way. I really feel I need to file bankruptcy, I plan to do it about July. My credit card minimums are just killing me every month. I really would not like to deal with the cc companies and collection people calling me the minute I stop paying cc bills every month so I was gonna use my tax refund throughout now through June to keep paying all my cc bills and stay current till just before I file bankruptcy. I know everybody says its like throwing money away paying cc if I plan to file bankrupt but I rather stay current than get streesed out over collection phone calls. Do you see any problems with this plan?

[JEM]

IMO...there are sooo many better uses for your tax refund than continuing to pay CC's if you are just going to file BK anyway. Why not use the money to retain an attorney and file sooner? Unless you NEED to wait till July, then obviously that wouldn't work.

The calls are annoying, but I've avoided talking to anyone for almost 3 months.

[jdcat]

It's really up to you. You can do that or you can use your return to pay for your ordinary living expenses. If you use your return to pay your credit cards just make sure that doing so doesn't cause you to have to cut corners in other areas such as food and other necessary expense categories. Doing so just wouldn't make a whole lot of sense.

[OhioFiler]

If you are certain you will be filing bankruptcy in July it makes no sense to continue to pay your unsecured debt. You are simply throwing money away. There are other strategies you can employ if you really fear phone calls from collectors. I would suggest simply not answering the phone.

[Dannmcg357]

Just my opinion: keep your money. Start an emergency fund savings and use it only for emergencies. Drop your current phone, get a cell phone and don't give your creditors your new number. Keep current on house and car, items you plan to keep.

[JohnDoe]

Just my opinion: keep your money. Start an emergency fund savings and use it only for emergencies. Drop your current phone, get a cell phone and don't give your creditors your new number. Keep current on house and car, items you plan to keep.

Great advise, why waste the money if you plan to file?

[okane]

Won't creditors start calling my work?

I can just drop my landline phone but I heard that creditors start calling your work, your relatives and so forth trying to locate you. Is this right?

[tigergem]

Shoot... one of my creditors called my neighbors and relatives EVEN THOUGH they had my contact info. Just to harass mind you. Because when I tried to call them back and talk to them about the debt they would say that they couldn't speak to me because I was "not primary on the loan". So that doesn't matter.

One of the attorneys on here suggests putting your income tax refund into an exemptable Roth IRA, which is brilliant, and then I guess you can withdraw or borrow against that after your discharge. I don't understand all the ramifications, but it puts your refund out of reach of creditors.

[LimpDisc]

Use your tax refund to hire a BK attorney. Once you find an attorney you feel comfortable with you can pay him a retainer and have all the creditor calls forwarded to him. At that point most of the calls will stop.

Crap, if you want to avoid the collection calls give me your tax refund and have your creditors call me.

[JohnDoe]

I can just drop my landline phone but I heard that creditors start calling your work, your relatives and so forth trying to locate you. Is this right?

My advise it not to try and hide. I simply changed my voicenail to include my full name so they new they were getting ahold of the right person. I would answer my phone every few weeks and explain to them I was filling chp7 . They asked for my att name and I supplied it to them. Most of them were very polite as they are just performing a job. The ones who were rude were told they could F off and I hung up on them. I never had them try and call anyone other than me. If you hide they will call everyone they can get ahold of to contact you.

[aces67]

Use your tax refund to hire a BK attorney. Once you find an attorney you feel comfortable with you can pay him a retainer and have all the creditor calls forwarded to him. At that point most of the calls will stop.

Crap, if you want to avoid the collection calls give me your tax refund and have your creditors call me.

This is great advice. If your certain your going to file BK then there is really no sense in throwing your tax refund away to your creditors. Hire a lawyer with it or pay up your living expenses like your mortgage.

[Dannmcg357]

Bear in mind also that BK should be a financial life change. I believe the reason you need an emergency fund is because if you dont have one then you will rely on cc WHEN the emergency happens, and it will happen. I know this was my biggest pit fall. I read alot about rebuilding your credit on here. I know it is important for a lot of reasons, buying a home, car, and even utilities and cable check your credit now. But if I never get another credit card as long as I live it will be too soon.