I've noticed a thread and more than a few question on this topic recently and thought this may be a way for those of us who have been through bk and out the other side to help others just starting the process.
First off, I'm going to repeat the advice my attorney gives his clients. Prior to filing, get the following issues squared away:
1. Have reliable transportation
2. Have a place to live
3. Have a bank account
Then, keep an eye on the last time you used a credit card. The law says that a creditor has the presumption of abuse on any charges of over $500 within 60 days of filing or, cash advances over $750 within 70 days of filing.
Time is your best friend. Again, this is my lawyer's experience. He said while challenges are rare, he has never lost an adverserial proceeding with at least 6 months between cc usage and never had a client subjected to such a proceeding when ther had been a year since any cc use.
Next, you need to know your states exemption. It may well be possible to take non exempt assets like cash and turn it into exempt assets like, ERISA qualified IRA's. Needed home or auto repairs or things like dental work, glasses/contact lens. Also, legal and filing fees are acceptable as well as the mother of all grocery shopping trips. Cram your kitchen and pantry with all manner on non perishable items. If you have freezer space, all meat and frozen items it'll hold.
Be aware at this time of year, filers can expect to surrender some chunk of an expected tax refund. You may want to delay your filing until you have spent the refund on neccessities.
Next, be aware that many states limit your cash on hand at filing. Make sure checks have actually cleared the bank and the amount really is below the threshold. Checks that are written and haven't cleared on the filing date don't count and the trustee may make a demand on some cash.
Finally, exam what got you to bk and take all steps to fix that problem. A bk is wasted if you can't support yourself post bk. There is nothing more disturing to me than to read a post where someone has filed and been discharged and still lives paycheck to paycheck.
Anyway, that's a few simple tips on pre planning. I'm sure other members will be adding their thoughts and experiences to this thread.
First off, I'm going to repeat the advice my attorney gives his clients. Prior to filing, get the following issues squared away:
1. Have reliable transportation
2. Have a place to live
3. Have a bank account
Then, keep an eye on the last time you used a credit card. The law says that a creditor has the presumption of abuse on any charges of over $500 within 60 days of filing or, cash advances over $750 within 70 days of filing.
Time is your best friend. Again, this is my lawyer's experience. He said while challenges are rare, he has never lost an adverserial proceeding with at least 6 months between cc usage and never had a client subjected to such a proceeding when ther had been a year since any cc use.
Next, you need to know your states exemption. It may well be possible to take non exempt assets like cash and turn it into exempt assets like, ERISA qualified IRA's. Needed home or auto repairs or things like dental work, glasses/contact lens. Also, legal and filing fees are acceptable as well as the mother of all grocery shopping trips. Cram your kitchen and pantry with all manner on non perishable items. If you have freezer space, all meat and frozen items it'll hold.
Be aware at this time of year, filers can expect to surrender some chunk of an expected tax refund. You may want to delay your filing until you have spent the refund on neccessities.
Next, be aware that many states limit your cash on hand at filing. Make sure checks have actually cleared the bank and the amount really is below the threshold. Checks that are written and haven't cleared on the filing date don't count and the trustee may make a demand on some cash.
Finally, exam what got you to bk and take all steps to fix that problem. A bk is wasted if you can't support yourself post bk. There is nothing more disturing to me than to read a post where someone has filed and been discharged and still lives paycheck to paycheck.
Anyway, that's a few simple tips on pre planning. I'm sure other members will be adding their thoughts and experiences to this thread.
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