Spending cash before / after filing?

[keptdigging]

Here in California it is downright luxuriant for those with underwater homes: a total of $23,250 can be used as a wild card. In my case (because CCs and business lines are the real problem), the bad real estate market is a godsend. Of course with our unemployment rate I'm going to need anything I can scrounge...

[geye]

Nervous1

I, along with you and offthewall, was up and down on this matter. I was so worried because at the time of filing, I had a little over $1,900 in all of my bank accounts. Later, when I was searching the Internet and found out about the Federal Exemption. Depending on your state. Check with your attorney to see if you can choose either the state or federal exemption. Some states allow state-only, some allow either federal or state. Including the most recent increases as of April 2010, the following is a summary of what may be claimed by an individual petitioner under the federal list:

* $21,625 of equity in the debtor's primary residence.
* $11,525 of household goods, furnishings and appliances, provided that no single item is valued at over $550.
* The debtor's interest of up to $3,450. in one motor vehicle.
* Jewelry of a value up to $1,450.
* Tools of the trade or business of debtor having a value of up to $2,175.
* Cash value of life insurance up to $11,525.
* Professionally prescribed health aids - no dollar limit.
* Social security benefits, disability benefits, most pension benefits, and child support or alimony - no dollar limits.
* Personal injury claims having a value of up to $21,625, not including pain and suffering or "actual pecuniary loss."
* The catch-all: any other assets up to $1,150.00 in value plus up to another $10,825 of value if the homestead exemption was not fully utilized. For someone with no equity in their home, this can total $11,975.

The good thing about the federal exemption is the catch-all here. I didn't realize this until I read it carefully again and again and again and... again. However, if you use homestead exemption, then you won't be able to use cash exemption, in this case they call it catch-all any-other-assets.

ha. No wonder the attorney could care less about our piddly cash. We're not keeping our house, and even if we were, it's underwater. No "any other assets", either. I guess it's time for me to quit worrying

[dumpinmydebt]

I thought I heard or read somewhere that you could only have about $600 max in your checking and savings when you file? I'm a little worried as I just got a 2k bonus from my job for being there a year and along with my paycheck was around 3k. I have'nt actually paid the lawyer yet and I know it takes at least 5 weeks to go through and he wants about 1300 to file. I have about 2.5k in my checking now and wanted to keep a little for a cushion for after I file. Should I spend the 700-900 or so I estimate I'll have left over or not worry about it? There are some home repairs I could do I guess and also something I wanted to buy for my car which is around 300. Would the item for the car be off limits for now as its not a necessity or should I spend a little more and get a contractor to fix the ceiling better than I could? I guess I can ask my lawyer when/if I pay him and decide to file, but just wanted to get an idea what I should expect or get advice from those who have gone through this already.

The exemption is different by state. I live in Ohio and I believe (don't quote me though, my wife is better at the numbers) that we can have like $800 ($400 each) cash on hand.

[Medport]

I thought I heard or read somewhere that you could only have about $600 max in your checking and savings when you file? I'm a little worried as I just got a 2k bonus from my job for being there a year and along with my paycheck was around 3k. I have'nt actually paid the lawyer yet and I know it takes at least 5 weeks to go through and he wants about 1300 to file. I have about 2.5k in my checking now and wanted to keep a little for a cushion for after I file. Should I spend the 700-900 or so I estimate I'll have left over or not worry about it? There are some home repairs I could do I guess and also something I wanted to buy for my car which is around 300. Would the item for the car be off limits for now as its not a necessity or should I spend a little more and get a contractor to fix the ceiling better than I could? I guess I can ask my lawyer when/if I pay him and decide to file, but just wanted to get an idea what I should expect or get advice from those who have gone through this already.

[nc73]

How could you have had it exempted? Isn't there a limit (I think here in Georgia it's $600), so how could anything over that amount be exempt?

I don't own a house. Plus my lawyer said it could be exempt at the meeting if it came up.

[rebuilt]

Didn't think so, and researched no fed exemptions or wildcard in NY.

[mrskal]

So, you could have $11,975 in cash and file BK, if yuo don't have a house? Anyone know if you can use federal exemptions in NY?

No, you cant.

[Fallonedward]

Nervous1

I, along with you and offthewall, was up and down on this matter. I was so worried because at the time of filing, I had a little over $1,900 in all of my bank accounts. Later, when I was searching the Internet and found out about the Federal Exemption. Depending on your state. Check with your attorney to see if you can choose either the state or federal exemption. Some states allow state-only, some allow either federal or state. Including the most recent increases as of April 2010, the following is a summary of what may be claimed by an individual petitioner under the federal list:

* $21,625 of equity in the debtor's primary residence.
* $11,525 of household goods, furnishings and appliances, provided that no single item is valued at over $550.
* The debtor's interest of up to $3,450. in one motor vehicle.
* Jewelry of a value up to $1,450.
* Tools of the trade or business of debtor having a value of up to $2,175.
* Cash value of life insurance up to $11,525.
* Professionally prescribed health aids - no dollar limit.
* Social security benefits, disability benefits, most pension benefits, and child support or alimony - no dollar limits.
* Personal injury claims having a value of up to $21,625, not including pain and suffering or "actual pecuniary loss."
* The catch-all: any other assets up to $1,150.00 in value plus up to another $10,825 of value if the homestead exemption was not fully utilized. For someone with no equity in their home, this can total $11,975.

The good thing about the federal exemption is the catch-all here. I didn't realize this until I read it carefully again and again and again and... again. However, if you use homestead exemption, then you won't be able to use cash exemption, in this case they call it catch-all any-other-assets.

What happens if you use the homestead exemption but your home is underwater and you have no equity in the home, can you use the cash exemption? I only have $1700 at the end of every month for my house payment so this should not be an issue

[rebuilt]

So, you could have $11,975 in cash and file BK, if yuo don't have a house? Anyone know if you can use federal exemptions in NY?

[wnguyen]

Nervous1

I, along with you and offthewall, was up and down on this matter. I was so worried because at the time of filing, I had a little over $1,900 in all of my bank accounts. Later, when I was searching the Internet and found out about the Federal Exemption. Depending on your state. Check with your attorney to see if you can choose either the state or federal exemption. Some states allow state-only, some allow either federal or state. Including the most recent increases as of April 2010, the following is a summary of what may be claimed by an individual petitioner under the federal list:

* $21,625 of equity in the debtor's primary residence.
* $11,525 of household goods, furnishings and appliances, provided that no single item is valued at over $550.
* The debtor's interest of up to $3,450. in one motor vehicle.
* Jewelry of a value up to $1,450.
* Tools of the trade or business of debtor having a value of up to $2,175.
* Cash value of life insurance up to $11,525.
* Professionally prescribed health aids - no dollar limit.
* Social security benefits, disability benefits, most pension benefits, and child support or alimony - no dollar limits.
* Personal injury claims having a value of up to $21,625, not including pain and suffering or "actual pecuniary loss."
* The catch-all: any other assets up to $1,150.00 in value plus up to another $10,825 of value if the homestead exemption was not fully utilized. For someone with no equity in their home, this can total $11,975.

The good thing about the federal exemption is the catch-all here. I didn't realize this until I read it carefully again and again and again and... again. However, if you use homestead exemption, then you won't be able to use cash exemption, in this case they call it catch-all any-other-assets.

[Exployer1234]

I do not spend anything out the ordinary. I still pay my utilities, buy food, and anything that is considered a necessity. I do not spend money on anything else. I save all my receipts and that way if something arises I can account why I spent the money.

[Fallonedward]

[QUOTE=Exployer1234;431392]

If you are doing a Chapter 7 when you file it gives a financial snapshot of what everything has been like for the last 6 months. The trustee will also ask if you have spent more then 500 dollars on anything. After the 341 meeting the trustee will either list you as a asset case or a no-asset case.

I would just use caution after the 341 meeting. I personally have not spent any money after my 341 meeting just to be on the safe side. If by some chance you are switched to an asset case then you would need to account for the money you just spent after the 341 meeting. So my advice is just use caution after the 341 meeting if you are indeed doing a chapter 7 no-asset case.

If you are not allowed to spend any money after your 341, how are you suppose to live? I will still need to feed the kids, pay the mortgage and pay the car payment? I'm confused can you explain this?

[Fallonedward]

Ha!...its funny how different state exemptions are. In the neighboring state of IL you can have exactly up to $4000 in the bank at filing date and be fine.

How do you find out what dollar amount your allowed to have for your state?

[angles]

[QUOTE=Exployer1234;431392]

I would just use caution after the 341 meeting. I personally have not spent any money after my 341 meeting just to be on the safe side. If by some chance you are switched to an asset case then you would need to account for the money you just spent after the 341 meeting. So my advice is just use caution after the 341 meeting if you are indeed doing a chapter 7 no-asset case.

[LookingAhead]

n/m...I answered it myself...