Got $3000 check 6 months before planned file date

[AfraidOfBK]

My grandmother passed away in Sept08...my mom got some $ out of it ( i dont know how much) decided to give me and my brother 3000 each. I deposited $3000 into my bank account and then used it to pay off one cc at almost 2k and 700 to another cc (which didnt even make a dent) and then the rest to expenses...

I never photocopied check or anything, will this look fishy if I file in June or July?

[EricaCallaha]

Just be honest about it. The 2K and 700 will be able to be tracked through your statements. The rest is only about 300 bucks. Not anything to really sweat over. Plus when you deposited the check, the bank will have that record.

Good luck.

[AfraidOfBK]

yeah, but will they ask about it?
I dont want to make a bad impression right off the bat

[EricaCallaha]

They probably will. But if you are upfront about it....it will be just a question and move on. You can track what you did with it. You were trying to catch up. Nobody can fault you for that. Worst case is that they try to recoup the money from the cc's to put into the estate.

Good luck.

[BKINAZ]

will this look fishy if I file in June or July?

Did you know you were going to file, if so why did you pay the cc's?

[AfraidOfBK]

i did not know i was going to file...thought i might at the worst just foreclose on my house and then one day be in a better spot to pay debts (YEAH RIGHT).

will trustee understand this? ALSO, I have enough money now that im missing my mortgage to pay my cc min pms...should i do that just to be honest? Otherwise, I have lots of extra cash sitting around.

[LuciluS]

i did not know i was going to file...thought i might at the worst just foreclose on my house and then one day be in a better spot to pay debts (YEAH RIGHT).

will trustee understand this? ALSO, I have enough money now that im missing my mortgage to pay my cc min pms...should i do that just to be honest? Otherwise, I have lots of extra cash sitting around.

IF you know you will be filing Bankruptcy sometime this year, why waste your money by paying Credit Cards if you haven't charge on them lately? Apply the money to necessities. Any outstanding medical bills? Been to the dentist lately? I know Dental Insurance(if you have one) is horrific. Do you have a Car that needs new tires and have you had the required maintenance performed which is listed in your Book you got when you bought your car. Stock up on Staples (groceries). If you have a freezer & it's not Full, buy food to fill it.

I have a 1999 Toyota with over 100,000 miles on it and I haven't had the 90,000 mile maintenance. Dealership wanted $1,800...local guy will do it for a little over $1,000. I need to new tires on it.

I think you can find Adequate ways to spend your excess money on expenses which will not be questioned by a Trustee.

Again, IF you know you are filing Bankruptcy sometime this year, Don't waste your money on paying Credit Card Debt. We stopped paying on our credit cards (except 1) in late Sept. 08 and will not be filing until Sept. 09 using Income from Mar-Aug.

Luci

[AfraidOfBK]

Thanks Luci, for all of your advice...

I will be taking care of all of my medical bills...but don't those get included in BK too?
I am just worried because I save 1900 a month not paying my mortgage...plus i have about 2k in bank to get rid of. Im not planning to file till July...thats at least 5-6k sitting around....

[LuciluS]

Hmmm, have you completed a Means Test to see if you qualify for a Chapter 7? Just because your Income is under your State Median, you will have to complete a Means Test.

That includes figuring your utilities, cable or satellite, telephone, cell phone, trash pickup, Pest Control (we have them come out every quarter, so I divided it by 3, Car Insurance bills and in our case, because hubby is gone usually from Sun.-Fri, we have a monthly alarm system.

As for health related bills (doctors, dentist, prescriptions, health insurance etc), in our case, because we are filing on 9/30/09, I'm using what is/will be paid from Sept. 08-Aug 09 for my Means Test and have documented proof. Our health related bills are at least $12,000 each year.

I can't recall right now, but there is a Poster on this Forum who provided an easy Means Test. I will try to find it.

I don't know Nevada Bankruptcy Laws. We live in Arkansas and we are able to use either the Arkansas Chapter 7 law or the Federal one, which is the one will be using.

Have you completed a list of your Assets? If not, do so. I think if you have an IRA or 404k it is automatically exempt; however, you will have to list the balance of it. Go to Google and research your State's Bankruptcy Laws. It might be you will be able to Exempt some of your Cash.

I received Social Security Disability of gross $1,355.40 and it is exempt for determining your State Median Income, but it must be added to our income when completing our Budget.

Luci

[NeedNewStart]

NV has one of the highest car exemptions. You can have up to $15000 equity in a car in NV......

If you need a new car you could get rid of some money by buying a new one, just don't put more than $15000 in it.

[spidge]

http://www.legalconsumer.com/

This site has the means test for each state.