Large check in my hands

[olly7011]

My wife and I just passed the means test today and we decided to sell our SUV at car-max. We now have a check in our hands worth 8 grand. What should we do with it? Keep it just in case the trustee wants it? Should we just not cash it, in hopes that it wont get noticed? Any help would be appreciated.

[magyar123]

Have you already filed/what Chapter? Have you had your 341 hearding yet? Does the check have any writing on it like "Void if not cashed within 90 days" or something similar?

[olly7011]

Have you already filed/what Chapter? Have you had your 341 hearding yet? Does the check have any writing on it like "Void if not cashed within 90 days" or something similar?

No I have not filed yet, I expect to do that in about 3 weaks. Chapter 7
No 341 hearing yet
I need to look at the check to find out

[southernbelle]

To be able to keep that money, you would need to first make sure that you spend it on necessities like bills, food, etc. and keep receipts for everything. From my experience at my 341, it would also be a good idea to put a little more distance between spending that money and filing bk.

Hoping the trustee will not find out is taking a risk. I wouldn't do it because when you sign those Federal documents, you are attesting to the fact that you verify that everything has been disclosed. If the Trustee asks what happened to the car and finds out accidently that you received that much money, your entire case could be in jeapordy. Take my advice, disclose everything and use the money for legitimate purchases and no luxury items.

That's just my advice.

[my4devils]

Why did you get rid of the SUV? Do you need another car? I would put that money into something that can be exempted- search your state allowances to find out what would be allowed. 8 grand sitting around is just way to tempting for a trustee.

[PaKettle]

I am not sure about filing so close to having $8k in cash. Unless you're buying another car with it or something very much NEEDED, I would think the trustee would wonder why you aren't using the money to pay creditors.

[Dollar Bill]

Why did you sell the SUV? Especially SO close to a planned C7 filing date?

Was the car gonna be taken and you figured you and your wife may as well use some of it on necessary items? Southernbelle said it first....spend it on necessary items. Rent, utilities etc. I heard BK atty's recommending paying rent/motgage and utilities up for two months.

Seems like you should have sold the car after Bk unless there was so much equity the trustee would have taken it.

[olly7011]

Why did you sell the SUV? Especially SO close to a planned C7 filing date?

Was the car gonna be taken and you figured you and your wife may as well use some of it on necessary items? Southernbelle said it first....spend it on necessary items. Rent, utilities etc. I heard BK atty's recommending paying rent/motgage and utilities up for two months.

Seems like you should have sold the car after Bk unless there was so much equity the trustee would have taken it.

The SUV was my wife's to use to go to and from work. Now she no longer works do to several medical reasons.We had a butt load of equidy in it and were paying $132.00 a mounth. I just did not want to see the trustie take all the equady when we could use some of the cash to buy things like new perscipion glasses and pay for my wife to go back to school. As well as a new computer so she can do her school work.

[olly7011]

Could I use the money to pay off my student loans?

[jackdanielhills]

Use the money now. Wisely! Get you eyes checked, buy the glasses. Buy food, necessary clothing. Use it in smaller amounts if possible...under $200. If possible, put off filing for a couple of months. Use some for the attorneys fees. You can use it if you don't don't crazy. Keep your receipts. Private message me if you want.

[keepmine]

You really need to speak to your lawyer about the timing issue.
Paying priority debts like student loans may well be OK but, don't do all of this within a few weeks of filing.

[jackdanielhills]

We had a similar experience. We were advised to sell our car. It had $8500 equity. Our attorney told us to use it wisely and that's what we did. We filed approx. 5 months later. I made sure I had plenty of food in the freezer, kids got clothes, shoes, etc. Husband needed a root canal and crown. Did it. We kept receipts, even though the trustee only asked "what did you do with that money". Our replay was "we used it for living expenses" Don't go crazy, but you need something reasonable, get it. You can't pay thousands for a car. That's an asset. The trustee will get it. The only bad advice our attorney gave us was to pay a month rent in advance. We had to pay the trustee that.

[PaKettle]

I think you should wait at least 3-4 months (or more) before you file.
But I'm not an attorney. Ask an attorney.

[deafbroke]

Use it on necessities. Big screen tvs. vacation to the bahamas, are not necessities (just examples). Anything that is questionable withing 90 days of filing the trustee will pick at it..I spent my fed refund, state refund, and stimilus, and even spent them on necessities and my trustee is making me PAY IT ALL B ACK TO THE COURT. $2500. Be careful!


DB

[olly7011]

Thanks for the advise everyone. I think we are going to use the money on atty fees, moving costs, and to pay off my student loan (if my atty lets me). And leave the rest for the trustie. All of my life I had to worry about not having enough cash but now I have it and can't spend it on what I want. Life has its irony.