Savings

[yak411]

Can you have a savings account while in Chapter 13? I am in VA. I am just wandering. I am trying to be SUPER conservative with my money and I would like to try to save about 150 a month (cut back on food/clothing/recreation). After a year (if I keep it up), it would be 1800, 2 years 3600.....and so on. Is this okay?

[buchanj]

put it in a shoebox and forget it.

[lrprn]

Can you have a savings account while in Chapter 13? I am in VA. I am just wandering. ... Is this okay?

I asked our Ch 13 lawyer this exact same question about six months after we filed. He said it was fine to open a savings account and save whatever we could to handle the financial emergencies that are going to happen over a five year period of time.

Most Ch 13 trustees understand that it's a bad idea to spend all our available cash every single month for five years. Eventually something bad is going to happen and we will have no reserves to deal with it if we don't scrimp and save to get a little surplus (for example, like paying for gas that has almost doubled in price/gallon in two years )

[CATCHMEIFYOUCAN]

Gas Prices

for example, like paying for gas that has almost doubled in price/gallon in two years

ohhhhh , don't get me started on gas prices, I cant believe I spent $60 for a full tank on this Hyundai Azera I'm driving now, I'm paying DOUBLE than I was paying just last week it seems! I think I'm just going to live in my car every other day and not make the commute to and fro from home to work / work to home .. JUST TO SAVE GAS !

CATCHMEIFYOUCAN

[parsoc48]

I feel that pain! My hubby and I both drive 100 mi/day for work; at least I can carpool, which has been a tremendous saving. But it's scary going into this 5 year plan with so many unk expenses.

[yak411]

My attorney also told me a savings account was okay but I do not want to lose the money later that I am trying so hard to save. I hope this works out!

[CATCHMEIFYOUCAN]

YAK411, I would save it in a shoe box, like BUNCHANJ suggested .. you just never know whats ahead as far as the Trustee wanting more money - looking for any assets (etc.). How about socking a percentage into a 401kplan (if you company offers one).

Best to you, Catchmeifyoucan

[chloe0724]

If you've budgeted for items that happen throuought the year, but not every month, then you need a savings account. The only way the trustee would question it, is if you have gobs of money it. As long as you are in line with your payment plan, you should have no worries.

I would aviod a shoebox at all costs. What if your house burns or floods? Then what, bye bye savings.

[Dirk Squarejaw]

You could use a little of your first month's savings and buy one of those fireproof containers and keep any important documents and your saved money in. That way you can keep your cash at home and in the unfortunate case that you did have a fire, your cash would be fine.

[chloe0724]

Those boxes are not water proof. I found that out the hard way.

[Gerry]

I have a fire box - didn't think about water damage. Hmm.

I wonder if wrapping cash in a zip bag and keeping it in the freezer is safe from fire?

Or maybe keep Traveler's checks in the house and the serial numbers / receipts in the car glove box, so they can be replaced if something happens?

[yak411]

What about having an account opened in my brothers name (whom I trust with my life) and listing me as beneficiary in case anything should happen?