Home improvements -- New Furnace?

[turnipblood]

Our oil fired furnace is on it's last legs. Went out again this morning. If we bought a new one on CC, how much of a red flag is that going to be for how long? Will it be worse if we buy an expensive one versus bottom of the barrel? We are flexible about when we can file, probably have 6-8 months leeway there.

What is the difference in scrutiny between doing something like using our 3 years of tax rebates coming to us or putting it on a cc?

[TEW]

Our oil fired furnace is on it's last legs. Went out again this morning. If we bought a new one on CC, how much of a red flag is that going to be for how long? Will it be worse if we buy an expensive one versus bottom of the barrel? We are flexible about when we can file, probably have 6-8 months leeway there.

What is the difference in scrutiny between doing something like using our 3 years of tax rebates coming to us or putting it on a cc?

Go for it. Get the best or most efficient You fully intend to pay that back right

[relief13035]

A furnace is a necessity. If I was you, I'd go out and get the best one on the market. I envy the people that were smart enough to plan their BK. My husband and I talked about the possibility of filing one weekend, made an appointment with an attorney the following week and was filed within 2 weeks.

[soleprop]

my perspective: you're going to have to use those rebates you're talking about on something or they'll be taken by the trustee. better to use them on the furnace than to commit fraud.

[PoorGrammyinBK7]

If you need a new furnace, that is most certainly a need - not a luxury. Buy a good one - (especially if you plan to keep the house) not the cheapest - but not necessarily the MOST expensive either. Get one that is energy efficient. Sometimes the electric or gas company has special deals on those too. Pay on it as long as you can - try to go at least 6 months (minimum is 3 months and 1 day - but they can still object). I don't think you will have a problem with this though. No one expects you to put your family in danger of freezing!

[catleg]

You sure you don't need a new water heater too? Now's the time. Not joking.

[keepmine]

I agree with Catleg. If you have 3 years of tax refunds coming in and the amount can't be exempted then spend 'em on necessities before filing. A furnace, new gutters, repaint the house, new tires on the car, any dental work you've put off-you get the idea.

[turnipblood]

Thanks guys. That's what I thought. I'm looking at a boiler unit that is fired by both wood or oil, that can also heat the hot water, so after BK when we're really truly broke we can save by using wood.

It's really expensive though. Probably 8,000 with the installation and everything. Should I keep this purchase as far from the filing as possible (like 6 months?) We probably could but we'd need to get it in now if that is an important consideration.

[ssdsco]

Worst case you'll have to repay the $8k when you file BK which sounds like you'd have to figure out a way to pay for a new furnace anyway. There's lot's of advice around the forum with suggestions to minimize a creditor protesting the charge. If you know you’re going to file BK it is fraud. Roll the dice…….

If you're using your own money from tax refunds then go for it. Spend any cash that's not exempt before you file on this kind of stuff.

[soleprop]

exactly my concern...

[turnipblood]

Which would be better, do you think? Buy it right now on CC and keep it 6 months off from filing date, or buy it 3 months later when all tax rebates are in and use the CC's for normal consumption.

My thought is buying it now during the very cold weather would probably look better, and be better too, since we are kind of biting our nails right now everytime we hear it come on thinking it's going to go, sniffing for oil, etc.

My guess is there will be literally nothing available to "repay" this purchase. It will be a no-asset case. The question would be will they come rip it back out of the house. It's about a $6500 unit with $2000 in the installation.

[catleg]

I'd say get it now, sounds like you really need it. You never know if that credit line will disapper. In fact I'd pay for the project upfront on the card.

[soleprop]

you need to stop using the cards. period. you are seriously planning on filing a bankruptcy; from that decision point forward, any card use without intent to repay is fraud. use those tax rebates you're talking about for the furnace; use your paychecks for your immediate need bills, and leave the creditors stuff to gather dust. this IS the lifestyle you will have to lead for quite some time. better to get it started before and clear all worry about fraud than to continue to invite the stress and creditor/trustee actions later. it's like you think this is some gambling game and get a thrill out of seeing how much you can get away with.

YOU HAVE REBATES - it isn't like you don't have an option.

i'm done in this thread.

[SubPrimeME]

I would put it on the CC, knowing you will have to pay it back. Then make payments, less then 600- of course towards it. Once you have the rebates you will have room to make those larger payments on the CC. A furnace is not a luxury item.

Remember, fraud is seen as frivoulous 'I am going to Vegas for the weekend', not 'I have to pay this bill or my pipes will freeze!'

[turnipblood]

"YOU HAVE REBATES - it isn't like you don't have an option."

Actually I don't have rebates now. I have them coming after we can get our ?@#! together enough to file. I'd say at least 3 months out. I definitely understand and appreciate your point of view though. It's not that we're looking to burn up our limits, or even burn up the rebates.

Truth be told, things may well turn around for us and maybe we never have to file. We run a small business that has simply been hammered over the last year and a half, and on the current course, 6-8 months looks like where the cash flow runs out. Maybe things improve soon. I'd love to think so.

I guess the bottom line is that long term the boiler should pay for itself (or more accurately, my labor with the wood) and it's a purchase decision I would make for better long term financial stability independent of bankruptcy considerations. But of course, the way things are, it's hard to say that anything is independent of such considerations. So I appreciate the feedback.