Help me spend 30k in 30 days-SERIOUS

[CindyLou]

Again, it is not illegal to do bankruptcy planning. Spending cash on needed expeneses or coverting non-exempt assetts into exempt assets (i.e. purchasing a car or home, if expempt in your state) is acceptable. As long as its done "above the board" and you can prove that you aren't hiding the cash it is definitely allowed. That was the advice and informatin given to both myself before I filed in 05 and given to my brother who filed last month. I guess it would depend on the trustee to determine if the expendatures are acceptable.

[DeadManCrawling]

When is 30k NOT 30k?

When it's in pre-tax, pre-penalty dollars that essentially eat most of it.

As i noted earlier, if we TRIED to pay creditors, they would recieve about 12k total, a pittance against what we owe. Then, NEXT month, we would be right back to the place we were before, with interest cranking at 30% now on most of our cards.

We are shuffling tax refund, an asset that must be liquidated worth about 8k, and normal living expense money along with a few grand in other unexpected, but nonexempt money.

End result is that, yes, it's legal, yes it sounds odd as hell-30k to spend. I know how strange it must seem to people outside the situation. I trust our attorney and accountant. If they are wrong, I promise I will let you know.

Meanwhile, we may move our filing date just to be sure.

I jsut can't imagine ANY trustee saying, "why the hell did you buy a new AC unit to replace the broken one?" We are in Florida. Or how about "What do you mean you had your graveyard of teeth repaired?" "Screw Timmy, he doesn't REALLY need a bed to sleep on." Or "Well, she never had an accident while her glasses were broken for the last two years. Whats the big deal?"

These are the kinds of things I am talking about. NOT going out to get a new TV or on a cruise. All are absolute necessities. I was just too enslaved by CC companies before.

Sadly, I (and we, really) put the shareholders of Citibank ahead of our own very real needs.

DMC

[SinkingFast]

Sadly, I (and we, really) put the shareholders of Citibank ahead of our own very real needs.

DMC

I hear that!

And Chase. And BoA. And,........ And,........ And,.........

[Granny]

Oops, everything I suggested was already listed on page 1 except treat yourself and your wife to a day at the spa. you probably deserve it.

[aa06a47]

DMC, my advice is to get what you can and wait as long as you can before filing. I am sure any medical / dental / hvac purchases will fly with no problem.

[Granny]

How long since the hot water heater was replaced?

How's the mower, trimmer, leaf blower etc.?

What about college fund, is that exempt?

[DeadManCrawling]

How long since the hot water heater was replaced?

How's the mower, trimmer, leaf blower etc.?

What about college fund, is that exempt?

We are all set in the area of landscaping and hot water heaters. I bought a water heater that has a lifetime warranty on all parts except the mineral rod that needs replaced every 5-8 years for 40 bucks.

I think we nearly have it all covered, and have made a few purchases.

We will likely file as soon as possible-next 2 weeks-as my wifes real estate work has picked up substantially. She is bringing in JUST enough to make things stretch longer, to allow us to pay our minimums without changing anything in the long run.

We are coming off our worst six months EVER, and I think if we miss the chance to file, we could be trapped into working our way out of this mess for 20 years at the cost of our son's education for college.

I will let you know what happens, and thank you all so much for not blasting me for this whole string. You are all gold, you are all diamonds. I don't know any of you, yet you are somehow, more compassionate and caring than the people I CALLED family and friends in the real world.

DMC

[SinkingFast]

I will let you know what happens, and thank you all so much for not blasting me for this whole string. You are all gold, you are all diamonds. I don't know any of you, yet you are somehow, more compassionate and caring than the people I CALLED family and friends in the real world.

DMC

We've all lived it or are living it. They haven't. That's why they can't understand.

I know what I'd do with $30K today,..................

Buy a CAR!!!

And some other stuff. Maybe take a trip.

Nah!! Prolly park it in the bank for a while and ponder how I could spend it 6 ways from Sunday first.

[possumfat]

my advice is to put as much time between spending and your file date, I did the same thing your doing and trustee recovered $7,500 as a pfef. payment, turned my case from a no asset to an asset case. Time is your friend in this circumstance.

[CurtInKS]

I am so glad I found this thread. As a related question, I have an $8800.00 CD, I am cashing in, on the 12th, at my attorney's suggestion, because he believes they will take it if not. I am going to put $4,000.00 on my mortgage and $4,000.00 on my vehicle, but I am keeping $800.00 to stock up on groceries, and to purchase some wal-mart gift cards, for gas down the road. Do you think that will work?

[HHM]

I am so glad I found this thread. As a related question, I have an $8800.00 CD, I am cashing in, on the 12th, at my attorney's suggestion, because he believes they will take it if not. I am going to put $4,000.00 on my mortgage and $4,000.00 on my vehicle, but I am keeping $800.00 to stock up on groceries, and to purchase some wal-mart gift cards, for gas down the road. Do you think that will work?

That sounds fine. You should not have a preferential payment issue because you are allowed to "prefer" different classes of creditors over other classes, i.e. you can prefer secured creditors over unsecured. The gift cards are also a good idea, just don't go overboard.

[MaryAnn]

Is a Wal-Mart gift card really exempt? You can buy computers, TVs, movies, and a whole bunch of of other luxury items with it.

[CATCHMEIFYOUCAN]

Ever consider that laser eye surgery I mentioned awhile ago ? that will surely eat up $3000-4000 ???

CMIYC

[DeadManCrawling]

This thread was "resurrected" by curtinks.

To update you all though, ontheoriginal 30k situation:

The numbers have added up and worked out to 30-35k. Some of that isn't here yet, but will be in the next few weeks.

Things we have done:

New bed for our son 700
Contact lenses for me 500
Eyeglasses for wife 400
Home repairs 3k
Retained lawyer with 2 k
New sheets and pillows 250
Auto repairs 600

Still to be done:

New A/C unit. Expect this to run about 7-9k. We need a big unit for a big house..

Back surgery for myself. I have a set of badly herniated discs. Am going to explore laser surgery, a new procedure that I detailed on another post. That will eat up anywhere from 5-12k, depending on insurance issues.

We also have bought a new (used) freezer to replace one that broke in our garage and are becoming masters at using coupons. We are stocking our cupboards and getting ready.

The other day we went to the grocery store and racked up $230.00 worth of groceries. Then we handed the cashier the coupons. When she was done scanning them, the actual amount we paid was $97.00.

I can't believe how much waste we have turned up in our lives. We had open accounts at Blockbuster that no one used, subscription video services on cell phones that no one used, worthless memberships to industry trade groups that we weren't even aware of. The total "waste" we discovered amounted to $700 or so per month. Just money that disappeared.

We will be filing, if we receive our tax refund as expected, by the beginning of July.

Best wishes,

-dmc

[CurtInKS]

Is a Wal-Mart gift card really exempt? You can buy computers, TVs, movies, and a whole bunch of of other luxury items with it.

I'm not sure. I just thought of it, as part of our grocery shopping. Keep a gift card in my wallet, and add $50 each time. Would they really scrutinize individual receipts to see what I spent it on? I'm not sure...