Christmas gift question

[pambysue]

Hello again
I am filing my BK in January and needed to know if spending money now on Christmas gifts would be scrutinized by the Trustee? I have 4 children, 3 in law children & 7 grandchildren. I had planned on giving about $40 or $50 to each adult child & the grandchildren, and spending about $250 or $300 on my 12 year old (I am the only one she receives anything from..no other parent and no grandparents). this adds up to about $1000. Will this raise red flags? I really wanted them to have a nice Christmas before I fall under the eye of the BK courts in January.

[Grace]

I can't imagine spending $1,000 on Christmas presents. You really need to come up with some alternatives. Obviously you can't afford to spend the cash. Christmas isn't about spending money on toys or gifts. Take everyone to church. Sing Christmas carols. Ring a bell for the Salvation Army. Volunteer for a local charity. Take your children and grandchildren to a local charity where they can help others. There are so many ways to celebrate Christmas that don't cost you a penny.

[lrprn]

Hello again
I am filing my BK in January and needed to know if spending money now on Christmas gifts would be scrutinized by the Trustee? I have 4 children, 3 in law children & 7 grandchildren. I had planned on giving about $40 or $50 to each adult child & the grandchildren, and spending about $250 or $300 on my 12 year old (I am the only one she receives anything from..no other parent and no grandparents). this adds up to about $1000. Will this raise red flags? I really wanted them to have a nice Christmas before I fall under the eye of the BK courts in January.

Hi pambysue. A question first...how are you getting the money for the cash and gifts? Do you plan to use credit card(s), is the money in your checking and/or savings account now, or is the money in cash now?

[HHM]

If you use credit, (and you put it all on the same credit card), odds are, you will get an objection to discharge for that particular debt. As much as Christmas is a part of our society, I am not aware of anyone who would agree that Christmas "gifts" are necessities.

If you already have the cash, then you can do it...but you need a dose of realism here...is that really the best use of your limited resources.

[pambysue]

Thankyou for your responses. No, I wasn't intending to use any cc's as I no longer HAVE cc's. I have managed to hang on to some $ as my home has gone into foreclosure. It has been a nightmarish year for me and my family and I debated on whether or not to buy Christmas presents at all. And, yes Grace, I do volunteer during the holidays. I help serve food for the City Mission for the homeless people. I also work 50 hours weekly and I was still unable to make my house payments, taxes, utilities and all my cc debts. That is why I have 'downsized' to an apartment and have given up my house and am filing BK. Living in NY is very costly. I just received the last heating bill for my house and it was $285. It is nothing to spend $400 to $500 monthly on food alone for my daughter & me (and that is just basics..no steaks for us!). I know $800 to $1000 sounds like a lot of money for Christmas, but with 14 children & grandchildren, it doesn't amount to much. I guess I could cut it down to a $10 or $15 gift each and just get my 12 year old the coat & boots she desperately needs. I doubt the Trustee would question that too much.

[CATCHMEIFYOUCAN]

Just my 2 cents, if you are using cash on hand (w/out it ever being in your bank account) than the Trustee doesn't need to know how much you spent on christmas. Hope you have a nice holiday

Catchmeifyoucan

[pambysue]

Thankyou Catchme. Yes, it is cash on hand. I hope you have a wonderful holiday, too

[SinkingFast]

Thankyou Catchme. Yes, it is cash on hand. I hope you have a wonderful holiday, too

There's nothing for the Trustee to see. It won't show on your last 60 days of bank statements.

You're shopping with cash you've squirreled away. It is a lot of people.

Have a MERRY CHRISTMAS!! Both you and your family!!

[pambysue]

Thankyou Sinking. That makes me feel a little less depressed! I truly and honestly don't go overboard, but with the sad, depressing year this has been, I thought maybe I could do a little shopping (something I haven't done in AGES!) for the holidays.
I hope you have a Wonderful Christmas, too!! And..the New Year is coming I KNOW it will be better!!

[wrinkleigh]

PambySue,

I understand your question perfectly -- I asked a similar one not long ago.

Spend a reasonable amount, and dont feel bad about it. I but groceries at WAL-Mart, and I would mix in a few toys with my weekly grocery purchases, over the last few weeks. Not that I am hiding it -- but it is not nearly as obvious as a one time huge shopping spree at Toys R Us.

I also bought my kids some much needed new clothes, clothing is a reasonable necessary cost any time of year.

Kids are kids and they DESERVE Christmas presents. So hang in there and just be reasonable about it. I know one of my greatest joy is watching my kids on Christmas morning.

Good luck to you.

[pambysue]

Thankyou Wrinkleigh. I think I will do just that...buy a couple of things at a time. I really don't plan on getting much at all, but part of me feels guilty spending the money on gifts instead of sending it to one of my bills that will be included in my BK..and then, I KNOW I would feel horribly guilty if I didn't give my kids anything for Christmas. My 12 year old daughter told me the other day.."Mom, I know you don't have any money so, please..don't try to buy me anything for Christmas. I really don't NEED anything!" that statement made me wish I could give her the world! She has clothes although she desperately needs to have a warm coat & boots for the cold NY winter! But, at her age I know there are things she would LIKE to have and once this is all over and I am back on my feet, I want to get her something special that she really WANTS (not NEEDS). She has suffered through all of this with me and she has matured so much!

[anonymuse]

It was really hard for me, but I limited myself to about 3 gifts each ($35-40 each) for my niece and nephew. They do get incredibly spoiled by the grandparents and parents and I just had to bite my lip and say "no" I just can't do it this year. I'm not saying it's easy, but I really really concentrated on picking out extra special gifts that will mean something to them and they realize why I chose that particular gift.

[miss puff]

Personally, I don't feel $1,000 for gifts is unreasonable considering the amount of children and grandchildren. What Grandmother doesn't want to spoil her Grandchildren? Don't feel bad about not paying a bill that you are including in your BK either. I don't have any debt this christmas, a first ever, and while I feel kinda guilty for filing bk in the first place, it's an exhilirating feeling to buy presents with cash that I have BECAUSE I filed bankruptcy, if that makes sense.

[anonymuse]

When not dealing with a BK, I would never question how much someone spends on xmas presents. Different people have different priorities and they can spend their money as they see fit.

The reason I see $1000 as excessive in a pre-BK case has to do with disposable income. If I try to think like a trustee I think I'd be asking how does this person have enough disposable income to spend this much on gifts, but not enough to contribute to a Ch 13 plan instead of a Ch 7 BK, and if they're able to come up with $1000 for gifts are they hiding money somewhere else.

Just my 2 cents.

[miss puff]

The reason I see $1000 as excessive in a pre-BK case has to do with disposable income. If I try to think like a trustee I think I'd be asking how does this person have enough disposable income to spend this much on gifts, but not enough to contribute to a Ch 13 plan instead of a Ch 7 BK, and if they're able to come up with $1000 for gifts are they hiding money somewhere else.

I totally see your point anon. I guess I was thinking the $1,000 was a one time thing. Alot of times over the holidays people get bonuses, extra hours at work, money for gifts themselves, etc.... I was thinking the $1000 dollars wasn't bad because I have half the amount of people she has to buy for, (husband, 3 children, my parents, husbands parents, and something small for 3 neices, 1 nephew and 2 new baby twin cousins. ) and I have spent about $585.00. So to me it just didn't seem like that much. Again, I was thinking more along the lines of a one time expenditure, not a continuing expense.