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Purchases During Chapter 7

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    Purchases During Chapter 7

    I see a lot of information on not using CREDIT CARDS when you are going to file Chapter 7, but what about using your bank account? I was thinking of buying some stuff with the money we are saving by not having to pay creditors. If I am understanding things right, we are way under exemption because we only have about $4,000 in the bank.

    We are filing next month in NJ where our home is and we are using federal exemptions. The home is about $100,000 underwater thanks to a lousy housing market and the poor conditions of the property and has no equity. The information I've read suggest that we can use the home equity exemption for a wildcard...bringing the total exemption to $13,100 for single and $26,200 for joint. Am I reading that right?

    #2
    There is no problem using cash to make purchases before filing BK as long as you can exempt what you buy. Going on a spending g spree could draw attention, so don't go crazy and keep receipts in case the trustee sees cash leaving your account and wants to know where it went.

    What you state about exemptions seems correct, but confirm that with an attorney.
    LadyInTheRed is in the black!
    Filed Chap 13 April 2010. Discharged May 2015.
    $143,000 in debt discharged for $36,500, including attorneys fees. Money well spent!

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