How to spend money

[roger_221]

As I mentioned in another thread, I need to get my bank accounts as low as possible before I file.

1. I have a Dell CC which I could pay off as it is only a few hundred dollars. My atty said this was a secured debt.

2. I have a riding mower in which I still owe about 3K. Should I pay it off or take a chance that they will come and get it?

3. Could I buy a freezer for ~$500 to use to stock up on some food?

[freshstart06]

Hold on there.... do not pay any credit over $600 unless it is your mortgage or rent. Lump sum payment will result in a red flag. The freezer my be okay but then you include as one of your assets at close to true value since you just purchased it. If you have kids things like school clothes, school supplies, etc should take a sum of the money (just kidding, but I have four kids and we just spent a nice sum of money last week because of school) Purchase food for the month. Repair something on your car that needed to be repaired. Make money orders for upcoming bills, fix something around the house but hire someone to do it, go to the dentist (LOL, that should take all the money even for a simple cleaning)

Okay, read me here, you only need to produce copies of payment from money orders if they ask, you can't help it that even after you made copies you had to cash the money orders back in to for an "unexpected use" a week or so after filing.

[HHM]

1. To make things less complicated, yeah, you can pay off the Dell debt. It is a secured debt so there is no preferential payment issue.

2. The riding lawn mower, you can reaffirm that debt in the BK if you want to keep it, and even if you did not reaffirm, I doubt they would come and get it. Is the mower for personal or business use? You probably do NOT want to pay it off because you might not have an exemption to cover the value, and therefore the trustee would take it.

3. Unless you "normally" stock-up on food, that is an unnecessary expense.

My general advice is try to move the money into exempt assets that will actually INCREASE in value down the road, not decrease (i.e. exempt retirement accounts, 529 college savings plans, etc). I understand the challenge of needing to get rid of some surplus cash to file BK, but let's not needlessly throw money away you don't have to.

[CindyLou]

whoa.....Dell claims to be secured, but read the fine print......mine did not actually say ANYWHERE that it was secured!!!! It was just a regular revolving account!! Be careful with that one! PLUS.....in the history of this website, I don't think there has ever been one known case of a middle of the night DELL REPO!!!!!!!!!!!!!!! So, secured or not, it would really be a waste of $600!

[HHM]

whoa.....Dell claims to be secured, but read the fine print......mine did not actually say ANYWHERE that it was secured!!!! It was just a regular revolving account!! Be careful with that one! PLUS.....in the history of this website, I don't think there has ever been one known case of a middle of the night DELL REPO!!!!!!!!!!!!!!! So, secured or not, it would really be a waste of $600!

This is more a moral decision than a BK decision...if the amount is somewhat in consequential, i.e. less than $500, might as well pay it off. After all, you agreed to a certain price for the item, accepted the financing, and you are almost done paying off the item. No need to needlessly complicate your BK over a token amount of money. I know this goes contrary to my normal advice of not throwing good money after bad, but when it comes to secured debt, if you can afford to pay it, and it is a "small" amount, might as well pay it off.

[CindyLou]

HHM, I can respect your opinion, however, I still think there are ways the money can be much better spent in this situation in the way of taking care of oneself during BK. I'm sure Roger did not buy the computer with the intent to not pay dell..... And be honest you guys....how many of you out there paid dell during your BK? Just curious? Anyway, my opinion stands, but HHM and I have agreed and disagreed many times, right HHM? ?