after 341 how long

[stressedNC]

should we wait to change anything?
We gave up our 2nd car in the bk and we would like to cash some bonds(we exempted them) and purchase a used one outright. If this is not a good idea should I finance one(dh filed bk I did not) and then pay it of after discharge by cashing the bonds. We are not fond of the idea of financing anything. We NEED the second car, our schedules have began overlapping and the 2003 one we kept needs some repairs and we don't have a single day to spare it to a mechanic.

Also dh is planning on changing jobs which involves a loss in salary but a slight gain in take home pay. Our monthly insurance premiums are currently around $1300 and they would go down to between $400 and $500 which is how we would have more money from less pay. Should he put this off until after the discharge?
Thanks,
Xxxxxxx
DH filed 8/21
341 9/23
projected discharge on the court papers 11/23

[AngelinaCat]

If the bonds were exempted, and you weren't asked about them at the 341, you are probably okay to cash them and buy the used car. Just be sure to keep all of your receipts so you can show where and why the money went where it did, should something come up.

I agree with you that I don't want to finance anything anymore.

Other members will chime in with their opinions, but I think you are okay at this point.

Good luck to you.

[stressedNC]

If the bonds were exempted, and you weren't asked about them at the 341, you are probably okay to cash them and buy the used car. Just be sure to keep all of your receipts so you can show where and why the money went where it did, should something come up.
I agree with you that I don't want to finance anything anymore.
Other members will chime in with their opinions, but I think you are okay at this point.
Good luck to you.

Thanks, I figure it is better to repay ourselves by replacing the bonds than to finance and pay someone else the interest. We have our 341 this coming Wed. so we will see what happens there and go from there. If the bonds were exempt(used the nc 5k wildcard) can they still take them?

[want2save]

This concerns me only because my lawyer told me I could not liquidate my IRAS until the trustee filed a distribution of assets. In a no asset case I guess that would be a notice of no assets? Help out here you knowledgeable folks!!! I was told that discharge only pertains to debts and that everything belongs to the BK estate until the actual closing of the case. At that time assets are returned to the debtor. Otherwise, you need permission to use any assets, either exempt or non exempt. Check this out and just make sure what you are thinking of doing is safe.

[doingpoorly]

I am curious on this issue as well. Want2 save- what your saying is exactly what I thought. Does anyone have any other opinions on this one?

[music12]

technically, someone (trustee or creditor) could object to exemptions up to 30 days after the 341 is concluded. so technically, you shouldn't use any exempt money until that time passes. however, objections to exemptions are very rare, i think, and if the trustee files a report of no distribution and says nothing about exemptions, it's probably safe to assume that no objection will be filed.

[want2save]

I just spoke to my lawyer's office. Am hoping that I misunderstood him that I was not able to use my IRAS until after total distribution/close. His right hand gal seems to think now that I am discharged I can use them as soon as the trustee removes her objection to the exemption (until I proved the $86,000 was in fact in an IRA. ) I have done this and the gal is following up on that objection removal and asking if the IRAS are now mine to do with as I please. I'll keep you posted as to the answer. (I'm in OR)

[want2save]

I"ve spent the afternoon reading the bankruptcy code :-( The only thing I could find re my above post is in Title 11 Chapter 5 11SC & 522
(D)
(ll)
(c)

which states "unless the case is dismissed, property emempted under this section is not liable DURING OR AFTER (caps mine) the case for any debt of the debtor that arose, or that is determined under Section 502 of this title as if such debt had arisen before the commencment of this case..." My question still exists as to whether or not the exempt IRAS become non exempt and hence property of the estate if liquidated prior to the closing.

[want2save]

Well, I just got GREAT news from my lawyer's office:

"You can take the money from the 401k/IRA at any time".

This means I do not have to buy back my motorhome to accelerate a closing of my discharged case. I can use my IRA money now to pay down my mortgage and get a reverse mortgage.

OMG, it's over!!!!!!!!!!!!!!!!!!!

[music12]

but be careful: there will be tax consequences unless it's a roth ira or roth 401k. it's usually considered a bad idea (for tax purposes) to take out money from retirement accounts if you are under 59 years old.

[want2save]

Thanks, I'm aware of that. I'm 67 and have used taxact.com to compute my federal and state taxes. I'll be taking 1/2 in Dec 2009 and 1/2 Jan 2, 2010!. Minimizes the damage big time. :-)

[bkmaggster]

I sold a bunch of exempt assets and bought a car in cash at around the 50 day mark. Nothing bad happened.