what to do about large payroll direct deposit before filing.....

[drowninginflori]

My spouse and I are going to meet with a new lawyer on June 4th (quickest appointment we could get) to start our filing process. We have already met with one attorney who said we would not qualify for chapter 7 because of the means test but did not even look at our budget. We do not have a lot of bankruptcy lawyers to choose from in our area so we are going to have to pick the best of the few. We have heard great things about this new guy so we plan to go ahead on the 4th and get things started (we have creditors and lawyers calling us and I am frightened that some are moving to the suing stage.

We are sad that it has come to this but because of family matters including (family illness, military move, and loss of job in 2007) everything just snow balled into the un-manageable territory. Anyway, my main question is this...I am a school teacher and I receive my final paychecks for the year mid-June (there will be several). This pay has to last until my paycheck starts again at the beginning of the new school year on Sep. 15th.

I hear people saying that you have to spend down your accounts but if we do that we will not have the money required to live on for three months. Should I stop my direct deposit and have them issue them to me by check and just cash them when I need them at a check cashing place or should I let them direct deposit and take them out (did not know if that would look questionable??) Any advice would be appreciated.

[Cali]

I would take the money and buy money orders from the PO. You can cash them when you need money or you can use them for bills.

Is your spouse military?

[drowninginflori]

yes he is.

[Cali]

I was in and my DH is still in.

yes he is.

[drowninginflori]

Did it affect his career at all???

[CindyLou]

There was another poster on there last year that was a teacher. They had to wait until 6months after the summer to file due to the reasons you state here.

[Cali]

We haven't filed yet, are hoping to do it next month. I doubt it will affect his career because of where he ranks at the command and his job.

Did it affect his career at all???

[ThreadsSnapping]

Anyway, my main question is this...I am a school teacher and I receive my final paychecks for the year mid-June (there will be several). This pay has to last until my paycheck starts again at the beginning of the new school year on Sep. 15th.

I hear people saying that you have to spend down your accounts but if we do that we will not have the money required to live on for three months. Should I stop my direct deposit and have them issue them to me by check and just cash them when I need them at a check cashing place or should I let them direct deposit and take them out (did not know if that would look questionable??) Any advice would be appreciated.

Can you just prepay all your bills for the summer? Is there anyway to get those checks paid out over the summer on a regular pay schedule?

[drowninginflori]

No, my school district pays out the contract for every instructional employee on the last payday of the year (this is stipulated in every contract). I might be able to change my direct deposit to checks and in this case cash them only when I would have normally been paid (15th and last day of the month) until the new school year begins and I start getting paid on schedule again (mid-September). Would that be okay? If we file before the 15th of June it might not be an issue (but I need that money to pay attorney fees). Anyone have any ideas??? I could use some guidance. Also, my credit union will only credit payments on both of our cars towards the balance (not credit it towards each monthly payment). I might be able to prepay uilities and household bills and maybe my insurance. If I pay my fees to the lawyer that would take up a couple of thousands.

[Phillymanhere]

Drowning,

I can feel your worry. Much love and support to you ....

I think one way to limit your anxiety on this is to run this by the attorney you're going to hire. I am assuming you have selected one ... run this by the attorney--and I think you can do so before you pay a dime more.

If you haven't selected one, I'd meet with 4 or 5 and run it by them. Each district has its quirks and a good attorney who knows your district and the way it interprets quirks like your situation is really someone you want to speak with. I'd meet with them even if I were filing on my own.

It's great to get our perspective (there are some really smart people on this board), but I think you'll feel a lot more secure about your decision after getting their input. In fact, I'll come right out and say I would not take any of these suggested moves before meeting with some really sharp attorneys. You'll see if all 4 agree on something and/or when there is disagreement on how best to proceed in your case. Either way, I think you'll feel better, more secure, about your decision.


good luck.

[AngelinaCatHub]

From my understanding I read you can convert to exempt items from non-exempt. Could you not fill out your budget by past history, and then go to one of the big box stores and purchase a bunch of storable foods for those months, pay your lights up ahead, etc? Eating and utilities are exempt except cable TV I believe. Purchase a prepaid gasoline card like Murphy’s from Walmart. As long as you can ACCOUNT for the bills.