In preparation for filing, I need to spend down some savings. There have been a number of expenses I have been putting off. I want to understand if these are considered legitimate expenses.
1. Eye exam and treatment. I was diagnosed with glaucoma a number of years ago and never followed up with the treatments because I became so immersed with my business that I didn't have/make the time and couldn't afford/justify the possible costs. I need to get my eyes examined, probably get new glasses and possibly have to go to an eye specialists.
2. There is a certain exam that men of a certain age need to have done. I have been putting this off because I was so immersed in my business, was fearful of the exam itself, and placed this expense as a low priority given that I would have to pay for it out of pocket (have a high deductible). I think I need to figuratively and possibly literary bite the bullet on this one. I figure that the TT will do plenty of probing as it is so I might as well use this as an opportunity to prepare for that.
3. Dental exam/work. I have been putting off going to the dentist for a few years. Sames excuses: immersed in the business, not enough time, potential out of pockets costs.
4. Car repair expense. The windshield cracked recently. The car needs a tuneup. I was in a car accident and the front hood is dented. I have a 10-year old BMW and would like to keep it after I file. Attorney suggested I pay off the balance after filing to eliminate the monthly car payment.
5. I am not clear that we will be able to keep our home although it is my preference to do so if we can get a meaningful loan mod where they reduce the principle and interest rates. If we were to keep the house, the bathroom needs to be retiled and the bath tub and sink need to be replaced. The house also needs painting.
6. I need to buy some clothes for interviewing/business meetings. I am trying to restart my business and could use a few clothes (shirts/pants/shoes). The business would require me to interact with senior-level executives at large companies and old jeans and khakis wont cut it. What's a reasonable budget?
In addition to these expenses, it's my understanding from the research I have done here and speaking with my attorney that I could also take the following actions to protect my assets from the TT.
7. Food and household item expenses. Is it OK to pre-pay a card for say $1000 at Trader Joes, Whole Foods, Walgreens?
8. I understand that I can put money into an IRA and potentially SEP account. I told my CPA I was thinking of doing so in order to protect my assets and as a means of working on building a retirement account. I'm 52 and, in principle, believe it's my wife's and my right to use these vehicles for saving. If the spirit of the BK law is to not leave you destitute, then it seems legitimate to me. The question is that if I move say $20K in retirement accounts 1 to 3 months before filing will this cause a red flag and irritate the TT. By coincidence, a colleague of my CPA at his firm by coincidence also prepares the taxes for the trustee. My CPA told me this might piss off the TT but that he, the CPA, was not familiar with the BK law. I told him my attorney said it was OK and that seemed to appease him.
Questions:
a) Are these legitimate?
b) Will incurring them so close to the filling incur the wrath of the TT?
Thank you
1. Eye exam and treatment. I was diagnosed with glaucoma a number of years ago and never followed up with the treatments because I became so immersed with my business that I didn't have/make the time and couldn't afford/justify the possible costs. I need to get my eyes examined, probably get new glasses and possibly have to go to an eye specialists.
2. There is a certain exam that men of a certain age need to have done. I have been putting this off because I was so immersed in my business, was fearful of the exam itself, and placed this expense as a low priority given that I would have to pay for it out of pocket (have a high deductible). I think I need to figuratively and possibly literary bite the bullet on this one. I figure that the TT will do plenty of probing as it is so I might as well use this as an opportunity to prepare for that.
3. Dental exam/work. I have been putting off going to the dentist for a few years. Sames excuses: immersed in the business, not enough time, potential out of pockets costs.
4. Car repair expense. The windshield cracked recently. The car needs a tuneup. I was in a car accident and the front hood is dented. I have a 10-year old BMW and would like to keep it after I file. Attorney suggested I pay off the balance after filing to eliminate the monthly car payment.
5. I am not clear that we will be able to keep our home although it is my preference to do so if we can get a meaningful loan mod where they reduce the principle and interest rates. If we were to keep the house, the bathroom needs to be retiled and the bath tub and sink need to be replaced. The house also needs painting.
6. I need to buy some clothes for interviewing/business meetings. I am trying to restart my business and could use a few clothes (shirts/pants/shoes). The business would require me to interact with senior-level executives at large companies and old jeans and khakis wont cut it. What's a reasonable budget?
In addition to these expenses, it's my understanding from the research I have done here and speaking with my attorney that I could also take the following actions to protect my assets from the TT.
7. Food and household item expenses. Is it OK to pre-pay a card for say $1000 at Trader Joes, Whole Foods, Walgreens?
8. I understand that I can put money into an IRA and potentially SEP account. I told my CPA I was thinking of doing so in order to protect my assets and as a means of working on building a retirement account. I'm 52 and, in principle, believe it's my wife's and my right to use these vehicles for saving. If the spirit of the BK law is to not leave you destitute, then it seems legitimate to me. The question is that if I move say $20K in retirement accounts 1 to 3 months before filing will this cause a red flag and irritate the TT. By coincidence, a colleague of my CPA at his firm by coincidence also prepares the taxes for the trustee. My CPA told me this might piss off the TT but that he, the CPA, was not familiar with the BK law. I told him my attorney said it was OK and that seemed to appease him.
Questions:
a) Are these legitimate?
b) Will incurring them so close to the filling incur the wrath of the TT?
Thank you
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