My wife traded in her car for a new car and pocketed $7k in cash. We had $15k in equity in her car, so we put down $8k on the new car and kept the remaining $7k in cash. We plan on filing for Ch. 13 in 6 months or so. Currently, we are not late on anything but that will change in the next two weeks. Will keeping the cash be a problem? We havent gotten the check yet so should we cash it in our checking account when we do receive it? We plan on paying $2k toward property taxes and will have $5k left over for emergency expenses when we file for Ch.13. Thanks.
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Check your states exemptions to see whether the cash is exempt or not. (You don't tell us what state you are in.)Originally posted by NeedOptions View PostFiled Chapter 13 02/2006 - Confirmed 05/2006 - Discharged 09/2011
I'm not an attorney. My replies are merely suggestions or observations, not legal advice. As always, consult with an attorney before making any decisions. -
I'm in CA. Thank you.Comment
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It's an asset in your BK if you still have it. That's all.
If you still have it when you file (and it can't be exempted) it just helps set a minimum of payments into the plan.
If you spend it, you'll want it to be for necessities (like taxes), and you'll want to be able to document where it went.12/2009 Stopped paying CCs; 3/10 1st suit;
8/2010 finally served; No Asset 7 filed. 11 mos since last bal xfer
9/22/10 60 day club; 9/24/10 report of no distr; 11/23/10 DISCHARGED
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Thanks Keptdigging. Since I don't plan on filing Ch. 13 for another 4-5 months, am I going to need to show the trustee where the money went?Comment
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