I have about 60-90 days before I can file for BK, what do i do about my money?

[butlertotheb]

I will be filing for Bankruptcy(most likely 7) in february or march and not sure what happens to money I have. I have a few grand and will probably have that same amount of money in february or march.... what do I do with it? do i lose it in bk? should i spend it on little things? a trip? what do i doand what happens?

[Bandit]

I am always amazed when people have all this extra money to get rid of before filing BK.

Yes you might lose it if you do not use it. How about adding to your 401K? or paying a few months of health insurance & auto insurance for a year? Do you have to buy a few presents for the holidays?

I would be careful with expensive vacations and would not use it to pay any large debts.

[keepmine]

Speak with your lawyer. Depending on your state, it may be exemped.
If not, get any necessary auto repairs done, any needed dental work, new glasses, home repiairs,etc. You get the idea.

[magyar123]

I want it, I want it.

[jeb]

I am always amazed when people have all this extra money to get rid of before filing BK.

Well, Bandit - I guess some are like me.

I have been taking money out of savings to pay bills for well over a year now and in a couple or three months will not be able to make payments and no hope of extra income.

So I started to look at my options - first was a re-negotiations of debts, second was settlement. Neither would solve the problem so that left BK.

So I still have a little cash left and, when I stop paying my bills will, in fact, start to accumulate more.

Then I found out Friday that I had some $4000.00+ in a stock account that I didn't know I had - broker had told me months ago that the only outstanding options trade I had was worthless.

So now I am trying to figure out how to handle this cash other than letting Trustee have it. In FL, very little can be exempted, it seems.

I have looked at purchasing a new car - per advice from my Attorney - but it has to come out that the payments are less that what I presently have and the car is worth less than you will owe on it. What I am finding is that if I use the cash as a down payment and then add in the discounts one can get right now, it is hard to keep the loan in that situation. - jb

[StartingOver08]

What I did with extra funds is pay for my attorney (BK 7 fees have to be paid up front and that was about $2700 including filing fees etc), then I paid the IRS because that is priority debt. For me that used up my funds. But if I had extra, I would then spend it on medical or household goods like the other posters say (stocking up of goods/repairs) without going overboard.

[banca rotta]

I am always amazed when people have all this extra money to get rid of before filing BK.

I too am amazed. It's a great question the op was smart enough to ask so s/he doesn't lose it. The concept of it does seem funny on how someone needs to get rid of the only cash they have so they can go bankrupt.

To the op just make some reasonable and necessary purchases and keep all the canceled checks and receipts.

[Bandit]

I too am amazed. It's a great question the op was smart enough to ask so s/he doesn't lose it. The concept of it does seem funny on how someone needs to get rid of the only cash they have so they can go bankrupt.

To the op just make some reasonable and necessary purchases and keep all the canceled checks and receipts.

It is funny seeing that BK wants cash & jewels more than any other asset. It would be like me saying I have $10,000 in diamonds to get rid before I go BK.

I do understand what is happening though & until those funds get into legal positions, it is just premature to file is all. Bk reminds me of this huge funnel into a meat grinder or juicer as it seperates.

[Bandit]

Well, Bandit - I guess some are like me.

I have been taking money out of savings to pay bills for well over a year now and in a couple or three months will not be able to make payments and no hope of extra income.

So I started to look at my options - first was a re-negotiations of debts, second was settlement. Neither would solve the problem so that left BK.

So I still have a little cash left and, when I stop paying my bills will, in fact, start to accumulate more.

Then I found out Friday that I had some $4000.00+ in a stock account that I didn't know I had - broker had told me months ago that the only outstanding options trade I had was worthless.

So now I am trying to figure out how to handle this cash other than letting Trustee have it. In FL, very little can be exempted, it seems.

I have looked at purchasing a new car - per advice from my Attorney - but it has to come out that the payments are less that what I presently have and the car is worth less than you will owe on it. What I am finding is that if I use the cash as a down payment and then add in the discounts one can get right now, it is hard to keep the loan in that situation. - jb

most definately use it to your advantage, just make it legal along the way.
It sounds like you might be in a 13 position since you will be getting more cash after you stop paying bills? Yes?

[jeb]

It sounds like you might be in a 13 position since you will be getting more cash after you stop paying bills? Yes?

NO - just all but my car payment is Ccard payments and I run at a 4-500 negative when I pay everything. I was 2-3 months away from running out of money when the extra $4000.00+ showed up in a stock account I thought was only worth $200.00 or so. Without that everything was going just fine.

My only income is SS, a small VA disability and a small company retirement.

My annal income is about half the means test.

With the SS not being considered income, I am solidly in a chp 7.

This whole thing is strange to me - being able to buy a new car and then filing 7 just doesn't sound right but it appears that is the way it works.

Worse case is I give them the 4 grand, I guess. - jb

[2strong]

is it possible to take it out of your account a little at a time and keep it in cash at home or somewhere safe and save it for when you on that tight budget from the trustee. and then use it on cash items.. or can you give it to say your parents as a gift then they may loan it back to you later

[jeb]

is it possible to take it out of your account a little at a time and keep it in cash at home or somewhere safe and save it for when you on that tight budget from the trustee. and then use it on cash items.. or can you give it to say your parents as a gift then they may loan it back to you later

Ah, have you ever heard of "FRAUD"? You do know you will sign a form stating how much cash you have - in checking/savings/stock accounts and in your pocket and mattress, right?

Guess times have changed from when I was a kid and Mom and Dad had to buy a new lock for the back door when we moved because they couldn't find the key. No one locked their doors when they left - one of the neighbors might need something. Yes, times, they have changed. -jb

[Bandit]

Guess times have changed from when I was a kid and Mom and Dad had to buy a new lock for the back door when we moved because they couldn't find the key. No one locked their doors when they left - one of the neighbors might need something. Yes, times, they have changed. -jb

I am the same. There was not ever a night when the front door or windows were locked back in the 60's & 70's. The windows stayed open with screens all summer night long & we enjoyed the summer breeze as we slept. Try that today and you can expect to wake up with a knife to your throat.
Yes times have changed.

[Bandit]

is it possible to take it out of your account a little at a time and keep it in cash at home or somewhere safe and save it for when you on that tight budget from the trustee. and then use it on cash items.. or can you give it to say your parents as a gift then they may loan it back to you later

The trustee will ask you if you did that within the last year on any amount totalling 500 bucks, under oath. so if you do that make sure you let a year pass because they can track every dollar if they decide to. Better to be safe and find a better way, or utilize it

[2strong]

It was just a suggestion but how can they possibly track cash.. I don't think they could.