What do you do with the $ you save during foreclosure??

[technoreid1]

What do you do with the $ you save during foreclosure?

I am sure there are going to be some of us who will able to save some $ during the time we don't have to pay a mortgage.
I am sure many are saving rent $ for when they lose their house....

I guess my ? is what if we are also going bankrupt? (I dont think your supposed to have $ in the bank)

What should we do with the $?

Hide it?

thanks, techno

[MomIcantFindmy]

I don't think anyone here would advocate hiding it. You could probably keep it in the bank and use it for a rental and moving expenses right before you file BK. You have to state how much money you have on hand. Hiding it would not be a good option.....you could get dismissed.

[SinkingFast]

We had already moved and were renting. We paid rent and the house payment for a year before our savings ran out. Not paying the house payment didn't "save" us anything.

If you haven't already gone Cash Only,........ I believe you'll be surprised when you learn you really don't have that much left over.

The car breaks down and you can't swipe the repair on a CC. You have to pay with the funds you have in the bank.

Your kid comes home from school and needs a $60 activity fee plus another $50 for gear for the team he/she participates on. Poof! You gotta fork over $110 you hadn't planned on.

Quick trip to Urgent Care because you got sick. There's copays for the doctor's office and possibly meds too.

Life's little surprises, in addition to costs to live, will leave you with less money than you expect.

[technoreid1]

I absolutely agree with you. We are going into foreclosure because we cannot make our mortgage payments any more due to a bad loan 2yr ARM. (it was our own fault for getting into such a loan....

+ we have 80k credit card debt and are getting sued by CC companies.

I have been told to go cash only basis for awhile until everything blows over.... because we are getting sued and dont want to take any chances although they could get a wage garnishment...... + we are trying to file a BK because of all our trouble....

Are there reasons for going cash only?

thanks, techno


We are trying to save what we can - which is very very little - even without a mortgage!!!!

We had already moved and were renting. We paid rent and the house payment for a year before our savings ran out. Not paying the house payment didn't "save" us anything.

If you haven't already gone Cash Only,........ I believe you'll be surprised when you learn you really don't have that much left over.

The car breaks down and you can't swipe the repair on a CC. You have to pay with the funds you have in the bank.

Your kid comes home from school and needs a $60 activity fee plus another $50 for gear for the team he/she participates on. Poof! You gotta fork over $110 you hadn't planned on.

Quick trip to Urgent Care because you got sick. There's copays for the doctor's office and possibly meds too.

Life's little surprises, in addition to costs to live, will leave you with less money than you expect.

[SinkingFast]

Are there reasons for going cash only?

thanks, techno

One BIG reason.

The 70/90 Day Rule in the BK Code.

CC purchases made within 90 days prior to filing, in excess of something like $500 "for luxury goods and services",........... And Cash Advances within 70 days of filing, in excess of $750, again "for luxury goods and services".

Cash Advances includes the use of convenience checks.

Within the 70/90 day time frame, the burden of proof that you did not fraudulently charge knowing you could not repay falls squarely on you.

Beyond the 70/90 day time frame, the burden of proof shifts to your Creditors.

Plus,........... Many of us don't know how much it really costs to live.

We go to the grocery store, pick up whatever we want, toss it in the cart without even thinking, and swipe a CC when we check out.

Stop at the gas station and fill up the tank. Swipe a CC to pay not knowing how much we spend on gasoline every month.

Need a car repair or new tires?? Swipe the CC and go. Get 'er done!

[technoreid1]

Sinking.....

I think we are on different pages here.... I am sorry....

I have not used CC's in 4 months for anything - I don't have any CC's....

this is what I am trying to say by saying "cash only"....

we are going through a foreclosure and have not been able to make mortgage payments in 4 months along with CC payments - everything just mounted up - our accumilation of debt took like 5 years.....infact we were using our CC's to pay our mortgage!

We are also getting sued by CC's --- (lots of things going on)

in a nutshell - since we are not paying cc's, or the mortgage we are trying to save money for a rental house for when we lose our main home......(which will be in about 3 months)

in the meantime we are going to be filing as CH7 on everything..... and let the home go into foreclosure....

My wife has direct deposit into our bank.... but I try to withdraw a little every month and save as cash for our
rental when we lose our home....

The reason we are doing this is because we are getting sued
by the CC's and dont want to get a judgment that would garnish our bank account. WE DONT WANT TO TAKE ANY CHANCES.

On top of all this I am not working......(long story) so we are on 1 income.

We have been told to stop direct deposit, get a paper check from my wifes employer (and cash it somewhere)

and go CASH ONLY. Basically have no bank account until all of this is over with (BK, lawsuits, foreclosure, ect....)


I hope I made sense....

thanks, techno

One BIG reason.

The 70/90 Day Rule in the BK Code.

CC purchases made within 90 days prior to filing, in excess of something like $500 "for luxury goods and services",........... And Cash Advances within 70 days of filing, in excess of $750, again "for luxury goods and services".

Cash Advances includes the use of convenience checks.

Within the 70/90 day time frame, the burden of proof that you did not fraudulently charge knowing you could not repay falls squarely on you.

Beyond the 70/90 day time frame, the burden of proof shifts to your Creditors.

Plus,........... Many of us don't know how much it really costs to live.

We go to the grocery store, pick up whatever we want, toss it in the cart without even thinking, and swipe a CC when we check out.

Stop at the gas station and fill up the tank. Swipe a CC to pay not knowing how much we spend on gasoline every month.

Need a car repair or new tires?? Swipe the CC and go. Get 'er done!