What to do with the tax refund?

[Danielle1981]

Alright, so I went to go file my taxes today. I just want to run this by everyone for opinions as to whether this is okay to spend it on or not. I got a hell of a lot more than I expected, 8575.00.

$599 to Studen Loans (Lawyer said $600 or more will get recalled by the trustee, they had put me in deferment because of my medical situation and I promised them 3K off it but lawyer called them and explained to them why I can't--they were fine with it).

$1200 Ball joints are about to go out on my lemon.

$500 tires, they're so worn pieces of metal are sticking out of them.

$600 Shocks and sway bar is about to go out.

$800 entire electrical system went out. I have no head lights, turn signals, brake lights.

$500 car lock, was broken into and the door no longer locks.

$800 transmission is about to go out.

$450 money I owe the baby sitter (650 a month for three kids is a deal and definitely don't want to get rid of her).

$300 clothes for my older two as their dad took all their stuff except for two changes of clothes when he found out I was filling bankruptcy.

$200 Need to get the kids beds, they have none--those were the ex's too.

$1514 Attorney for bankruptcy

$150 Glasses for Alex

$150 Glasses for myself

$250 catch up heating/electric bill.

$93.00 catch up cable bill.

$175 Freezer.

$450 School tuition bill I have outstanding.

My biggest problem is my car. It's a lemon. It's not in running condition but if I have to declare bankruptcy then I at least better have a car. I just don't want anything to look like I spent money just to spend it.

[StaciMM]

That is $4400 in repairs to your car. What is your state's exemption? It might be better to put an amount about equivalent to your state's exemption into buying something reliable. Just a thought! If you use the $$ to replace an unreliable/undriveable vehicle-that would not be unreasonable.

[Danielle1981]

Yeah it's a lemon. 3,000 is the exemption. However, I still owe that car to Ford. I owe 3500 on it and it's worth 4000. I'm scared to go that route because what if I buy another lemon?

[robivi3]

I sure wouldn't spend a dime on the car. You may consider a decent older "buy here pay here" car that will have a lien on it, if you have an income. maybe with two year payments. Only a thought and just to keep a driveable set of wheels from being an asset.
Pay your bills and YES, pay your Atty. You have listed NEEDS. Document, dates, reciepts and keep good records of the disbursement. Get your families NEEDS met.

Take pics of your current conditions and buy some inexpensive furniture for your kids, walmart dressers, etc... Nothing that is extravagant in any way.

[robivi3]

WOW, you guys posted fast! I replied in the interim. Get 3000 dollar beater. Get someone who knows cars to go with you. Not just a male whom you think knows cars, get someone who knows what to look for and make it worth his day to help you. You may want to condider your options on the car on which you owe. Voluntary repo, there will likely be a balance owed after sale but you could possibly include that in BK.

[StaciMM]

Its your call-but putting another dime into it is a waste of money in my opinion. First of all, the repairs will raise the value making it worth more on paper than what it really is. If the car is unreliable and needs that much in repairs, you'd be better off surrendering it in BK. Speak to your attorney, but you might even be able to get a late model used car w/ the $3000 down (exemption, money from your refund) assuming you can keep payments about what they were on the other car. You would reaffirm that loan of course when you filed.

Yeah it's a lemon. 3,000 is the exemption. However, I still owe that car to Ford. I owe 3500 on it and it's worth 4000. I'm scared to go that route because what if I buy another lemon?

[Danielle1981]

When the attorney looked up the value he said if it's in perfect condition with the high mileage (over 200K) that is what it would be worth. But he did say he could argue it's worth less because of what is broke on it. I think I'm going to take a look around. I mean if I got a nice little 3k car it'd take my gas bill way down. I have an explorer....so you can imagine. I need to cut down my expenses anyway. So I'll see what I can find. I'll give myself one week until filling and if I haven't found anything then I guess I can just resort to fixing it. Everything on it are very necessary repairs though. The guy at Meineke pretty much told me not to drive it without definitely getting the ball joints repaired cause my tires were about to break off.

As for the dressers....I got one at a garage sale for $25. One of the drawers is falling apart but nothing a little wood glue can't fix. As for dressers....HA! I have two changes of clothes for them. Nothing to put in the dressers at this point! But when I do I figure I'll just hang their clothes. They just need somewhere to sleep at this point and some sheets.

[StaciMM]

Sounds like a good plan... Check the for sale ads in the paper, if you have someone you trust to look over a vehicle with you.

[SinkingFast]

Just as a CYA for you on the car. Get a list of all the repairs needed and the prices documented to ding the value of you car.

We're doing the same thing on all the old cars. The front bumper on Hubby's truck is peeling off and needs replaced. Not that we would do it for it to look nice, but it deducts value. The clutch is starting to give him problems. We're getting a repair estimate for that and hoping it holds together until we file. Son's car has no radio and needs new speakers. There's a radio there, but it doesn't work. The speakers are so old they've dry rotted. The car has some rust and hole in one of the rear wheel wells. Daughter's car has a serious rust problem in the under carriage. To properly repair her's would be 75% of the value of the vehicle.

Find you a nice, reliable older car. Ding the value of your current one for repairs needed if you want. Or just let it go back to the lender in the BK. Be discharged of the debt and free of the lemon for good.

[djk]

$4,400 repairs on a $4,000 car on which you owe $3,500?

[lilgoose]

Hey, just a thought, but you can always go to a Goodwill. My mom found a Basset dresser that she has stripped and it is GORGEOUS! It still needs to be stained, but it is solid wood and so much beautiful detailing. And, she paid only $35 for such great quality! Need clothing? eBay has so many great bargains if you are patient and spend time looking. You can always use Goodwill for that also.

As for the car, I would ask your atty, but we actually bought an older vehicle the first part of the month we filed and let the brand new one that we bought in the month prior. Buying the older one without a trade-in and down pymt. (Lost my income and we did this to lower the pymts, which did happen). So, we reaffirmed the older one. It wasn't a problem for us. Of course, this was all with atty advice. Which I would suggest doing.

Good Luck!! Just don't be extravegant in your purchases. You are allowed so much for clothing and such. You might ask your atty if you can purchase clothing, as you most definitely need it.

[Pinktiger]

Any man who would take the children's clothes and beds is a real jerk. Just wanted to get that off my chest. Now, as for the money: first, you need to take care of yourself and your kids. Pay the child care. Pay the heating bill. Buy food, especially canned food and nonperishables. Stock up. Get new glasses for yourself and Alex. Get some used beds somewhere; check the classifieds, go to Goodwill, ask your church. Get the kids clothes, but don't spend a lot on new clothes. However, do get each of them one thing new. Now, I didn't tell you this, but put some folding money aside for emergencies. Not enough to get you in trouble with the courts, but you need some money for emergencies. Then, and only then, pay the lawyer. The student loan can wait. Pay your school tuition - but if it looks like this semester is going to be a bust and you aren't going to finish, don't pay it. Drop out instead and go back in the fall.
You need a lot of TLC. Take care of yourself and enjoy your kids.

[Danielle1981]

Agreed he is a jerk. But I have to do something about getting them somewhere to sleep and clothes to wear. Thats my priorty followed by either fixing that car or finding a new one. It sucks to get on the bus with 3 kids in Colorado winters. My kids are constantly sick anymore. It doesn't make sense to fix the car really because it's like losing 8k in the long run after I pay it off and fix it, but I need something.