Help me spend 30k in 30 days-SERIOUS

[DeadManCrawling]

Changed my thoughts. My problem encompasses a few companies, a few incomes, and too many issues for most people to comprehend, with tax and employee problems compounded by shareholders and other busybodies.

It would be unfair of me to ask you to judge a situation like this fromt he outside.

PM me if you really care, and thanks for your patience and understanding.

[CATCHMEIFYOUCAN]

Catch Me If You Can PM'd you ! I think we spoke before ???

[SinkingFast]

The absolute safest thing to spend money on pre-BK is necessities.

House repairs, car repairs, doctor's visits, dentist's visits, eye doctor's visits, clothes. The basics.

[DeadManCrawling]

The absolute safest thing to spend money on pre-BK is necessities.

House repairs, car repairs, doctor's visits, dentist's visits, eye doctor's visits, clothes. The basics.

Absolutely correct, and the money is really going to be there. And we REALLY have abused ourselves to pay CC minimums.

Got eyeglasses for wife, contacts for me. Need new AC unit badly, going to get some dental work done. My mouth resembles the Jaws Of Life rescue contraption.

None of us has bought clothes in years. Gonna spend some there, but not too much. A couple hundred bucks each should be fine.

We all need medical checkups.

Appreciate your understanding.

[juststupid]

I'm pretty good at this, we spent 10k in 3 weeks.

Ok, what did we spend it on...
Down payment for my car, car repairs fo husbands car, and new tires. Got new plates and registration for the car we bought in Jan.
We paid our car insurance until October when it renews.
We were behind on some regular month to month bills and paid them up and a month ahead.

Had to buy clothes for all of us.

We bought a new mattress for son #1. It's bad when you can't get the puke smell out.

Stocked up on groceries. Especially meats and veggies. Things that can sit in the cubboard or freezer.

And we made extra payments on the new car, and husbands too.

[DeadManCrawling]

JS

You NAILED one expense that has been WAY overdue. My 14 year old is still on a bed designed for a 7 year old, with an old mattress, no box spring. He has tolerated it fairly well, but it just isn't RIGHT.

How dumb and inconsiderate on my part. I've been paying Chase and CITI at the expense of my family's well being. Now I feel like an ogre in addition to a terrible financial planner.

Well, I'm off to get him a new bed later today.

Thanks so much.

[spell]

How about:
$1000 baby emergency fund
$2000 catchup on car maintenance and physicals
1 year of pre-paid mortgage and car payments

Anyhow, you're posting in the Chapter 13 forum. What's the total of your outstanding unsecured debts? If you're already filed how about buying out of the plan.

[JollyGG]

What about buying a freezer and having a whole pig and whole cow butchered. Meat for about a year and a half which would save on the grocery bills while in your 13.

How are your shingles looking, furnace, windows, carpet, garage door, ect? If I remember right you are in Florida with an unlimited homestead exemption making this a really good place to spend your money.

How are the appliances? Will your fridge, dishwasher, stove, washer and dryer make it another 5 years.

Kids grow fast. What about buying clothes a couple of seasons ahead?

Do you need a more reliable vehicle that will last you five years (careful with your exemptions)?

Stock up on paper goods, canned goods, ect.

[DeadManCrawling]

We are not filed yet. I just got back from the attorney a moment ago, head is still swimming.

In our bk district, this amount of expenditure will fly under the radar, though they will ask about certain expenditures. All will be normal and expected, as below.

Here's the current plan:

approx 34k to dispose of on necessary and reasonable personal and business expenses in about 45 days:

7,600 mortgage
800 utilities
1,200 advertising my business
6,000 new ac unit (badly needed)
600 new bed for my son
840 HOA dues
1,500 vehicle repairs-bad brakes, new tires, general tuneup
1,600 assorted usual ongoing business expenses
4,000 Fed income tax
5,000 dental and medical checkups and tooth repair, etc.
600 already spent on eyeglasses and contact lenses for her and I.

And the rest on groceries and other peripheral bills should get us there.

I calculated what we could do to pay CC bills, just in case. If we paid CC bills in after tax dollars, we would pay about 12k on 80k or so of debt. Hardly seemed worth the effort, and these are items that we have been sorely neglecting.

Attorney says we can pay SOME things in advance, but to be very careful. No mortgage payments, etc. Also, our BK district, apparently, is a major proponent of the 6 month rule. They will likely ask WHY we did so much in dental in one month, but will accept an honest explanation, and accept it as a 6 month average expense.

Attorney says the trustees here tend to understand what happens right before filing, as far as using funds previously spent on cards. They just figure people need to get caught up on these necessary things before filing, and factor it intot he average, as long as the explanation and receipts prove the case. If they DON'T, for some reason, he says, look out, cause the trustee will hammer you.

Ours are/will be totally legit and beyond reproach. I can't believe how much we have neglected ourselves and our health through all this.

Thoughts/criticisms/concerns? Appreciate all of your understanding and insightful ideas so much.

DMC

[aa06a47]

That is alot of money to dispose of 30 days before filing. Can you postpone filing by a couple of months? It may fly under the radar, but that seems extreme. Good job on pre-bk planning though. I wish I had done a better job of that myself, thought I did get a new Heat Pump a year before filing, but that was an accident...my heat pump was out and costing me a fortune each year in repairs.

[lrprn]

Thoughts/criticisms/concerns?

No criticism but do have one concern to share, DMC....the amounts in your accounts will be $X on filing day, but if the trustee asks for a look back on your accounts for any reason, he's going to see $X +$30,000 pretty close to filing. You better be as pure as the driven snow spending that money, because that's a huge red flag. $30K pays back a good chunk to your creditors and it could lead to a charge of you filing in bad faith. Hope your lawyer is 99.9% certain there won't be a problem with what you are planning to do spending that much money so close to filing.

[DeadManCrawling]

No criticism but do have one concern to share, DMC....the amounts in your accounts will be $X on filing day, but if the trustee asks for a look back on your accounts for any reason, he's going to see $X +$30,000 pretty close to filing. You better be as pure as the driven snow spending that money, because that's a huge red flag. $30K pays back a good chunk to your creditors and it could lead to a charge of you filing in bad faith. Hope your lawyer is 99.9% certain there won't be a problem with what you are planning to do spending that much money so close to filing.

I had the same concerns. But, my attorney and I did the math. The way these amounts are structured, the real money available, for creditors, would be about 10-12k. That's because much of this is taxable, in the context that I would have to first take it from business accounts or taxable funds, pay taxes at 34% personal, match portions of the tax on the company side, and pay additional quarterly taxes and unemployment taxes. In essence, that would leave very little, after tax to actually pay creditors.

I had the same concern, until he did the math. I confirmed the numbers with my accountant as well.

And it will be pure as the driven snow. I am not looking to cheat in any fashion. It will be nice to get dental work done-first time in 4 years.

[lrprn]

It will be nice to get dental work done-first time in 4 years.

Funny the things we look forward to the most when we start being able to spend even a little money on ourselves again. Go enjoy your dental appointment - you've earned it - and we'll be there with you cheering you on in spirit!

[CindyLou]

When planning my BK, my attorney told me good rule of thumb is that if it is a bill that becomes due monthly, that I could only pay one month in advance. Also, if you normally pay insurance monthly, then if you change it to yearly that could also be an issue. Remember, you cannot pay your car note or mortgage ahead. Anything extra you pay will go to the principle, but your payment will still due at the same time next month. There is nothing wrong or illegal about BK planning. Just keep it all transparent and keep ALL your receipts and a detailed description the expenses and you should be fine.

[aa06a47]

I had the same concerns. But, my attorney and I did the math. The way these amounts are structured, the real money available, for creditors, would be about 10-12k. That's because much of this is taxable, in the context that I would have to first take it from business accounts or taxable funds, pay taxes at 34% personal, match portions of the tax on the company side, and pay additional quarterly taxes and unemployment taxes. In essence, that would leave very little, after tax to actually pay creditors.

I had the same concern, until he did the math. I confirmed the numbers with my accountant as well.

And it will be pure as the driven snow. I am not looking to cheat in any fashion. It will be nice to get dental work done-first time in 4 years.

I am a little puzzled, as you had previously stated you needed to spend 30K. How can you have 30k cash to spend, but not that much to give to unsecured creditors? I would just be careful and delay filing if you can. If I remember correctly, I had to provide 3 months of bank statements plus the bank statements from when I filed to the 341 meeting. That kind of money "disappearing" in the account will raise a few eyebrows even if it is on the up and up, in my opinion.