How should we spend our cash?

[lisac77]

I just found out that DH had a significant amount of cash set aside for "retirement." But instead of putting in an IRA he kept it in regular bank account. Bad idea! Both the lawyers I have spoken with insinuated that we should upgrade our cars and fix up the house.

I also have two bonuses coming in next year that may have to be spent right away as well. Oh, and we have about $1000 in a "college fund" (really a UTMA account in my husband's name) for our son. That will have to be spent, too.

I guess the question is, how much can we fix up an 1800 SF house? We're going to be living here for a long, long time (thanks, BK!) so we might as well live somewhere nice.

Does anyone know other acceptable ways to spend cash?

[SinkingFast]

Start by stocking up your pantry. Canned goods, TP, paper towels. Things you know you'll use but won't spoil or go outa date in 6 months to a year.

Move on to clothes. No Armani or Gucci. Just regular jeans, khakis, undies, tops and such. Need a new winter coat?? New shoes and/or boots. Don't forget linens. Bed and bath. Need new drapes, curtains, or blinds for the windows?? How about sheets, towels, and such.

On your house,......... Look for any repairs that need doing. Maybe get a good General Contractor to come in and look things over for you. When we were getting our house ready to sell, a painter giving us a bid found a window rottening that we did not know about.

Has your house been inspected or treated for termites??

How old are your major appliances?? Need a new fridge, dishwasher?? How's the old furnace/AC/heat pump unit doing??

Floor coverings can be rather expensive. That's one place to spend a chunk of change.

That's a few ideas for you.

[niteflytes]

Sounds like really good advice. Same for the cars...have those inspected by a trusted mechanic for any unseen problems. Any medical, dental or vision care that you might need would also be a good use of the money.

niteflytes

[Spartan]

What does the law say regarding buying prepaid credit card? I am thinking hypothetically here, and not advocating circumventing the law. Technically, balance on prepaid card is an asset. But I don't think that asset is mentioned in the code. I suspect the trustee can get court order to compell you to cash it out and hand it over, IF they find out.


Part of me just thinks that, it would be nice to have a little secret squirrel cache stashed somewhere, just in case of something comes up......

[lisac77]

Spartan, the only problem I see with the prepaid credit card is that we will have to disclose it to the trustee and I don't know how he/she would view that type of transaction.

This is what my lawyer told me:

Everything has to be disclosed to the trustee. The fact that we had X amount of dollars in December 2006 will have to be disclosed to the trustee. What we spent it on will also be disclosed, and in his view, certain things are just no-brainers as far as acceptable expenses.

Cars need to be reliable, homes need to be repaired. It is absolutely reasonable to replace my 6 year old car, our 20 year old roof and our 20 year old AC unit that has broken for the last 3 summers running. It is not so reasonable to buy a prepaid credit card. It's reasonable to replace our 20 year old stove and refrigerator. Not reasonable to withdraw the cash and have it "disappear."

This makes sense to me, especially in light of the fact that we HAVE been skating on thin ice in terms of major things breaking around the house.

The phrase that the lawyers threw at me was "pigs get fat, hogs get slaughtered." If we're careful with how we spend the money, we hopefully won't have a problem with our spending of this money.

[SinkingFast]

This is what my lawyer told me:

Everything has to be disclosed to the trustee. The fact that we had X amount of dollars in December 2006 will have to be disclosed to the trustee. What we spent it on will also be disclosed, and in his view, certain things are just no-brainers as far as acceptable expenses.

Cars need to be reliable, homes need to be repaired. It is absolutely reasonable to replace my 6 year old car, our 20 year old roof and our 20 year old AC unit that has broken for the last 3 summers running. It is not so reasonable to buy a prepaid credit card. It's reasonable to replace our 20 year old stove and refrigerator. Not reasonable to withdraw the cash and have it "disappear."

This makes sense to me, especially in light of the fact that we HAVE been skating on thin ice in terms of major things breaking around the house.

The phrase that the lawyers threw at me was "pigs get fat, hogs get slaughtered." If we're careful with how we spend the money, we hopefully won't have a problem with our spending of this money.

All very true, Lisac.

The Trustee will see your last 60 days of bank statements, so if you file within that time frame, the money will show. Coming in and going out.

Be sure to keep detailed receipts of all your expenditures. Necessities, the Court understands. Frills get frowned on.

[CindyLou]

I squirreled away a little in travelers checks. I think not bein greedy is the trick.

[FilingOnMyOwn]

I squirreled away a little in travelers checks. I think not bein greedy is the trick.

Good idea.

[FilingOnMyOwn]

What does the law say regarding buying prepaid credit card? I am thinking hypothetically here, and not advocating circumventing the law. Technically, balance on prepaid card is an asset. But I don't think that asset is mentioned in the code. I suspect the trustee can get court order to compell you to cash it out and hand it over, IF they find out.


Part of me just thinks that, it would be nice to have a little secret squirrel cache stashed somewhere, just in case of something comes up......

Bad idea. Even prepaid credit cards require your ss#, and are traceable. Gift cards, for use at certain retailers, are a different story. But either way, whether it be travelers checks or gift cards, its really no different than hiding the cash itself. Don't get caught and you're fine. Get caught and you're screwed. Chances are you won't get caught if you're not stupid.

[quietsound]

yeah well what happens if you buy things you shouldn't before you file or in process of filing. i mean it's christmas time. is there a certain amount your allowed to spend. what if you get a bonus check before you file and on the paperwork your only to mention what you got last month and the month before that and the month before that. what happens if you use part of that money as well throughout the year to pay bills........i mean even if you bought gifts with some of that money, what would happen?

[quietsound]

wait, i'm not filing chapter 7, i'm doing a 13, this is response i made is under the wrong catagory.

[Spartan]

Bad idea. Even prepaid credit cards require your ss#, and are traceable. ......

Nope. That is not true. Could be true in some cases. I dunno. My prepaid card doesn't even care about my real name and address, let alone my ss#. I can put what ever info on it. Well, the first time, the address needs to be correct, as that is where they will send you the card. After that, you can change it to anything you want. No ss# needed.

If it is traceable in any form, my judgement holder wouldn't have been sitting on their hands for the last few years. Granted, I only use the card in places where CC is needed. Not a whole lot of money on it. Just a revolving account with a few hundreds of prepaid on it.

[sassy]

I know you won't earn any interest on the money but you wouldn't on a pre-paid credit card anyway so I was wondering if you could have your mother or father or someone you can trust without a shadow of doubt open a safety deposit box and put some cash in it. My Mom keeps one with several thousand dollars in it just for emergencies. I don't know if you'd have to disclose it if you were a signor on the safety deposit box in your parent's name but it's a thought.

[FoolAndHisMoney]

I know you won't earn any interest on the money but you wouldn't on a pre-paid credit card anyway so I was wondering if you could have your mother or father or someone you can trust without a shadow of doubt open a safety deposit box and put some cash in it. My Mom keeps one with several thousand dollars in it just for emergencies. I don't know if you'd have to disclose it if you were a signor on the safety deposit box in your parent's name but it's a thought.

Not a good idea. Most bankrupt debtors always think of ways on how to save an asset from the hands of the trustee and creditors. If the original poster just takes money especially over $600 and starts giving it to "insiders" to hold and receive nothing in return that's text book fraud for shit sure. If the trustee requests bank statements they will ask the debtor to explain where the missing money went. The trustee will sue and win the money back and the debtors will be S.O.L. on bk fraud charges if it's a large amount.

Just legally exempt the money. SF & NF have some great ideas to keep you out of trouble.

[CATCHMEIFYOUCAN]

just my 2 cents

any cash you have on hand IF its TRACEABLE you'll get caught for sure. IF ITS not traceable (for example) if you spend a $1 on a scratcher and you win $500 bucks you can cash the scratcher anywhere (usually up to $600), keep the cash out of any accounts and do what you wish - like, who's going to know!

Catchmeifyoucan