Bankruptcy pre-planning advice...

[time2startover]

I've seen the numerous threads dealing with the legality and morality of bk pre-planning. Is there someone who would like to go over some things that would be OK to do? I'd like a legal guide to pre-planning. I don't mean cash advances and plasma screen TV's, but maybe stocking up a little on diapers and baby formula. I already know it's wrong, but I'd just like someone to chirp in with ANY advice that would be accecptable. If it ends up being that nothing besides stopping the cc use and waiting the 90 days is the only advice that shows up, so be it. I just wanted to know what steps I should take if any. Please share any ideas that bk would affect in the future. I don't just mean how to buy things and hide them (not going to do that), but more like getting insurance in order, healthcare, car loans, etc...) or anything that people have run into after bk and said, "I should have done that before I filed!". Thanks for the help.

[JeepMom]

I'm not sure of new laws.

Old laws stated you were legally able to charge up to $1,000 up to 90 days before filling. Diapers and formula would be acceptable charges.

I purchased clothing for my children ($350). I did not hide the date the items were purchased.

[keepmine]

I did exactly what you are suggesting but, I'd didn't use cc's to do. I defaulted on my accounts and used the money I had been sending to the cc's to buy just a ton of food, car and home repairs, new glasses and a trip to the dentist.
Be sure you have a bank account in good standing prior to filing. Also, be sure you have not only health insurance but, long and shortterm disability as well. If you're way upside down in your car, get GAP insurance.

[anonymuse]

If you're concerned that you might have leftover disposable income that might force you into a Ch 13 plan, make sure you have adequate health, life, home, and auto insurance. Buying a little more than normal each week of diapers and formula or whatever so that there's some in the pantry is just good sense.

Once you decide to file, pay the utilities and mortgage faithfully, but stop paying your unsecured debts.

There is planning before BK, and then there is "pre-bk planning". Pre-bk planning is the the arrangement (or rearrangement) of a debtor’s property to allow the debtor to take maximum advantage of exemptions. (Pre-bankruptcy planning typically includes converting nonexempt assets into exempt assets.)

Some is good sense, some is tactical. It's just a little more difficult now that lawyers are considered debt relief agencies and can't give you any financial advice.

If you have to come straight out and ask "is it okay to do this?" then ask. You've got a pretty good idea what won't be tolerated, but not all of this is common sense so we have to ask somewhere.

Here's some links to look at:

http://www.dianedrain.com/Bankruptcy/BankruptcyArticles/Articles/PreBankruptcyPlanning/bkpreplanning.htm

http://touchngo.com/lglcntr/usdc/bnkrptcy/briefs/bnk02.htm

http://media.wiley.com/product_data/excerpt/18/04714736/0471473618.pdf

[SinkingFast]

Start working on gathering your documents. Last 6 months of pay stubs. Last 4 years of income taxes and wage statements. Mortgage and Auto Loan paperwork. Insurance policies - Life, Health (if you do that and not thru work), Auto, Homeowner's, etc. Retirement and 401K Statements. Keep all your utilities bills payment stubs. Bank Statements. Attnys want 2-3 months of utilities bills and bank statements on file. Every attny you Consult with will give you a list of docs they have to have on file before you file BK. No harm in getting those all together now.

Start tracking your expenses so you know how much you pay for food, gasoline, utilities, phone, cable, etc.

Here's a link for you to an old thread with lots of great info:

http://www.bankruptcyforum.com/showt...tcy+calculator

And here's a really important link for you:

http://www.usdoj.gov/ust/

Means Test and Schedules allowables for your area is at the DOJ website.

When you decide for sure, for sure, you're gonna file, then stop paying your Creditors. Use that money then to stock up on things for home, pay your attny and filing fee, etc.

Stay current on property you wanna keep. And definitely pay your utilities. If you BK against utilities, you'll be required to come up with huge deposits in the future. If you BK against your doctor, he/she may refuse to continue treating you and your family. Attnys will advise a lot of things you can do, but keep in mind, the attny doesn't have to live with the consequences of their advice.

You should be able to go 4-6 months or longer after you quit paying payments without threat of lawsuit before you HAVE to file. 2-3 months before you're turned over to internal collections. 2-3 more months before you're turned over to an outside collections company. Then a bit longer before the law suits start. Get your attny picked out, your docs submitted, your fee paid, and your petition prepped. Then you're ready to go at a moment's notice when you NEED to.

Say you don't use your CC's again starting today. Let's say you can stay current on your payments for another 3-4 months. Then you quit paying payments and go another 5-6 months,......... You'll be nearly a year out from the last time you used a CC by the time you file. The more time between CC use and filing, the better.

[scammer]

Start working on gathering your documents. Last 6 months of pay stubs. Last 4 years of income taxes and wage statements. Mortgage and Auto Loan paperwork. Insurance policies - Life, Health (if you do that and not thru work), Auto, Homeowner's, etc. Retirement and 401K Statements. Keep all your utilities bills payment stubs. Bank Statements. Attnys want 2-3 months of utilities bills and bank statements on file. Every attny you Consult with will give you a list of docs they have to have on file before you file BK. No harm in getting those all together now.

Start tracking your expenses so you know how much you pay for food, gasoline, utilities, phone, cable, etc.

Here's a link for you to an old thread with lots of great info:

http://www.bankruptcyforum.com/showt...tcy+calculator

And here's a really important link for you:

http://www.usdoj.gov/ust/

Means Test and Schedules allowables for your area is at the DOJ website.

When you decide for sure, for sure, you're gonna file, then stop paying your Creditors. Use that money then to stock up on things for home, pay your attny and filing fee, etc.

Stay current on property you wanna keep. And definitely pay your utilities. If you BK against utilities, you'll be required to come up with huge deposits in the future. If you BK against your doctor, he/she may refuse to continue treating you and your family. Attnys will advise a lot of things you can do, but keep in mind, the attny doesn't have to live with the consequences of their advice.

You should be able to go 4-6 months or longer after you quit paying payments without threat of lawsuit before you HAVE to file. 2-3 months before you're turned over to internal collections. 2-3 more months before you're turned over to an outside collections company. Then a bit longer before the law suits start. Get your attny picked out, your docs submitted, your fee paid, and your petition prepped. Then you're ready to go at a moment's notice when you NEED to.

Say you don't use your CC's again starting today. Let's say you can stay current on your payments for another 3-4 months. Then you quit paying payments and go another 5-6 months,......... You'll be nearly a year out from the last time you used a CC by the time you file. The more time between CC use and filing, the better.

Great post great one!!
I truly admire your depth of knowledge, you are well prepared and ready to effectively implement, a well thought through plan, like I said before, you are a smart cookie. I am a has been from old law now, a 45 record from a bygone era, but hey maybe they will bring those old laws back right?? God knows they should

[brokemommy]

I've seen the numerous threads dealing with the legality and morality of bk pre-planning. Is there someone who would like to go over some things that would be OK to do? I'd like a legal guide to pre-planning. I don't mean cash advances and plasma screen TV's, but maybe stocking up a little on diapers and baby formula. I already know it's wrong, but I'd just like someone to chirp in with ANY advice that would be accecptable. If it ends up being that nothing besides stopping the cc use and waiting the 90 days is the only advice that shows up, so be it. I just wanted to know what steps I should take if any. Please share any ideas that bk would affect in the future. I don't just mean how to buy things and hide them (not going to do that), but more like getting insurance in order, healthcare, car loans, etc...) or anything that people have run into after bk and said, "I should have done that before I filed!". Thanks for the help.

I asked something similiar, except I told the truth exactly were some of the dollars are going. Bad idea, careful what you admit, they will hang you for thinking. I think they called it a witch hunt in Salem.

[JeepMom]

I asked something similiar, except I told the truth exactly were some of the dollars are going. Bad idea, careful what you admit, they will hang you for thinking. I think they called it a witch hunt in Salem.

She's asking for diapers and formula, not boobs.

[SinkingFast]

She's asking for diapers and formula, not boobs.

I think it's New York with the old time written Exemptions, that allows for a year's stock pile of food and goods for the needs of the Debtor and the Debtor's dependents.

That would be a lot of Pampers and formula!!

[brokemommy]

She's asking for diapers and formula, not boobs.

Okay from now on my boobs are "baby necessities" does that sound better.

[SinkingFast]

Okay from now on my boobs are "baby necessities" does that sound better.

Only if you can actually produce enough milk to feed your own child and wet nurse at least 2 additional babies!

[anonymuse]

Okay from now on my boobs are "baby necessities" does that sound better.

A little flaw in your logic--generally, you can't nurse after surgery.

[JeepMom]

A little flaw in your logic--generally, you can't nurse after surgery.

Actually Pam Anderson did. It just means you'll probably need follow up.

I just weaned the baby this week. Know what worked for my mommy boob? New bras. It's amazing, $7 at JCPenney. Put 'em on my Hooters card. I giggled when I paid.

[brokemommy]

Start working on gathering your documents. Last 6 months of pay stubs. Last 4 years of income taxes and wage statements. Mortgage and Auto Loan paperwork. Insurance policies - Life, Health (if you do that and not thru work), Auto, Homeowner's, etc. Retirement and 401K Statements. Keep all your utilities bills payment stubs. Bank Statements. Attnys want 2-3 months of utilities bills and bank statements on file. Every attny you Consult with will give you a list of docs they have to have on file before you file BK. No harm in getting those all together now.

Start tracking your expenses so you know how much you pay for food, gasoline, utilities, phone, cable, etc.

Here's a link for you to an old thread with lots of great info:

http://www.bankruptcyforum.com/showt...tcy+calculator

And here's a really important link for you:

http://www.usdoj.gov/ust/

Means Test and Schedules allowables for your area is at the DOJ website.

When you decide for sure, for sure, you're gonna file, then stop paying your Creditors. Use that money then to stock up on things for home, pay your attny and filing fee, etc.

Stay current on property you wanna keep. And definitely pay your utilities. If you BK against utilities, you'll be required to come up with huge deposits in the future. If you BK against your doctor, he/she may refuse to continue treating you and your family. Attnys will advise a lot of things you can do, but keep in mind, the attny doesn't have to live with the consequences of their advice.

You should be able to go 4-6 months or longer after you quit paying payments without threat of lawsuit before you HAVE to file. 2-3 months before you're turned over to internal collections. 2-3 more months before you're turned over to an outside collections company. Then a bit longer before the law suits start. Get your attny picked out, your docs submitted, your fee paid, and your petition prepped. Then you're ready to go at a moment's notice when you NEED to.

Say you don't use your CC's again starting today. Let's say you can stay current on your payments for another 3-4 months. Then you quit paying payments and go another 5-6 months,......... You'll be nearly a year out from the last time you used a CC by the time you file. The more time between CC use and filing, the better.

Sinkingfast, please, please, please expand a few more idea's I have found myself reverting back to your post several times.

[miss puff]

Okay from now on my boobs are "baby necessities" does that sound better.

OMG-That was funny!