too much money in the bank??

[kathy4530050]

Hi--I am about to file chapter 7 and have about $16,000 in the bank of very recent income I earned from my business. This is gross-my expenses on this amount were high and I have to pay taxes on it yet. I will use some of it to pay first quarter estimated taxes, but then want to know if any red flags would be raised if I

1. Bought some health insurance-I am currently uninsured
2. Paid a few months in advance on my rent and utilities
3. Put some $$ on an account with my doctor. I am really afraid that this money will be seized and then I won't be able to pay my doctor. I have a medical condition that requires continual monitoring.
4. Took care of some long-overdue car repairs.

I am so afraid of being judged on how I spend my money, but at the same time I have had so little income in recent months that there are about 100 places this money could go. Is it going to raise any red flags if the week before I file, I spend a LOT of money? Thanks!

[JRScott]

1. This is acceptable.
2. This is not acceptable.
3. Probably not allowed unless its some kind of Health Saving Plan.
4. This is acceptable.

[kathy4530050]

Hmmmm

If I wrote a large check to my doctor, would that necessarily look suspicious? The trustee couldn't know it was for future expenses, right?

[Trixie007]

They could ask to see the medical bills I suppose... We received large tax refunds this year and spent a lot of it in Feb - our attorney suggested we hold off on filing a bit to put some time between the spending and filing. I'm not sure how long he has in mind. I'm going to put a list together of exactly where the money went so he can look at that and determine if there's anything that makes waiting necessary.

There are a bunch of things you could do, though. You can send in the estimated tax payment early, stock up on non-perishables and paper goods, have any auto repairs done, etc.