Question about Cash

[ajm]

Not sure what to do...we don't want to commit fraud. Here is the situation.

Husband will be filing chapter 7 with 50K in cc debt. I'm not filing. My income is down about $60K over last year (realtor). I have one commission check for $20K.

We've already refinanced the house to pay off debt and it didn't make a dent. We have to start supporting my father-in-law who is blind...his retirement account is way down and he's not making ends meet. My husband works for a mortgage company and there is a 50/50 chance that he'll get laid off. We no longer have access to credit.

If we give that money to the credit card companies it won't make a dent. We need to save that cash so that we can support ourselves, our kids, and dad. I don't like the idea of not paying off but we have to put ourselves first...we have kids and responsibilities that are more important.

Our house is a disaster...none of our doors lock, our fence is barely standing, roof is leaking, mold in the bathroom.

Question is this: what can we legally do with the money besides giving it to creditors? IRAs? Home repair? We want to file in January. Preference would be to make a few repairs and then put the rest away but I'm not going to hide money from bk trustee.

[momof3b1g]

Not sure what to do...we don't want to commit fraud. Here is the situation.

Husband will be filing chapter 7 with 50K in cc debt. I'm not filing. My income is down about $60K over last year (realtor). I have one commission check for $20K.

We've already refinanced the house to pay off debt and it didn't make a dent. We have to start supporting my father-in-law who is blind...his retirement account is way down and he's not making ends meet. My husband works for a mortgage company and there is a 50/50 chance that he'll get laid off. We no longer have access to credit.

If we give that money to the credit card companies it won't make a dent. We need to save that cash so that we can support ourselves, our kids, and dad. I don't like the idea of not paying off but we have to put ourselves first...we have kids and responsibilities that are more important.

Our house is a disaster...none of our doors lock, our fence is barely standing, roof is leaking, mold in the bathroom.

Question is this: what can we legally do with the money besides giving it to creditors? IRAs? Home repair? We want to file in January. Preference would be to make a few repairs and then put the rest away but I'm not going to hide money from bk trustee.

Check with a lawyer, but depending on your situation you may be able to keep/exempt the cash. But putting it into repairs on the house is a good idea. But before you do that hoe much equity do you have in your home? You may not want to do repairs and bring up the value of the home before filing a bk.

[jessegirl]

It all depends on what state you live in weather or not you can exempt that. Are you keeping your house? Is that the only money that you have? You really need to speak with an attorney and see what the laws are in your state on weather or not you can exempt that as MOMOF3 says.

[hnhlvr]

If you need that money to support yourself, why would you put it into house repairs? My dh and I have a similar situation and for that reason have decided to postpone BK as long as possible.

[ajm]

Thanks for responses

Believe me, home repairs is the last place I want to spend money! But none of our exterior doors even lock, our bathroom is moldy, city is after us about our fence. We've put them off as long as possible but it has to be done. I don't think the improvements we make will add value...they will just bring the house up to market value.

My father-in-law is the bigger issue. We have to help him...he's an old blind man who lost a lot of his retirement. If we pay off his credit cards or help with his house, we worried it's going to look like were trying to transfer assets.

I will speak to an attorney....good advice.