Need to spend down money before filing

[freshstart44]

Hello. I live in OH. We met with an attorney and paid his fee yesterday. We gave him all our documents required, which did not include bank statemnts. We had filled out the paperwork and wrote what our checking account balance is. He told us we need to spend down money in our checking account to about $1000 before he actually files the paperwork.

Have any of you had this experience? What are proper things to spend money on? He did tell us to save any reciepts.

Can we take out cash and spend it on things we need? We need a new garage door opener and to repair our drop ceiling in the basement. My husband needs to have a repair done on his car.

The attorney told us not to overpay any one credit card but to keep paying all of them.

Any help would be greatly appreciated.

Thanks!

[keepmine]

I don't know why he told you to keep paying cc's unles, you've had some recent charges.
The items you listed are OK to spend moneu on. Also, dental visits, eye exams, stock up on food,etc.

[freshstart44]

Well he said, I can't tell you to stop paying on your credit cards but if you choose not to that's up to you. We are 1 or 2 months behind on them. He said to make the normal mininimum payments. I hate to sink more money into them. We have already cashed out all our 401K & pensions to try to stay a float.

But we have to spend the money on something and that doesn't include our tax return which will be here shortly. So I figured we would pay the cards.

Thanks-

[mymare]

Hi - this my first post. I feel as though I can't breathe - but you all make it a little less scary. Here's my question - if you have to "spend down", couldn't you spend it on a home update, or something that they can't take - rather than paying cc which doesn't make sense. Just wondering? Take care!!!

[StartingOver08]

You can do home repairs, but not home improvements. Stocking up on food and supplies (TP and other non-perishables) is a good way to utilize the funds to help you when you need it most.

Repair and or maintain (brakes, oil changes etc )any vehicles you are going to keep.

Did you have recent balance transfers, cash advances or credit card charges? Is so, maybe that is why he said to pay the cards. Otherwise, if you have not had any of these for the past 90 days, don't pay the unsecured debt. Save those funds for stocking up and or doing repairs.

[keepmine]

Well he said, I can't tell you to stop paying on your credit cards but if you choose not to that's up to you. We are 1 or 2 months behind on them. He said to make the normal mininimum payments. I hate to sink more money into them. We have already cashed out all our 401K & pensions to try to stay a float.

But we have to spend the money on something and that doesn't include our tax return which will be here shortly. So I figured we would pay the cards.

Thanks-

Then, stop paying the cards.

[OhioFiler]

do not pay any more unsecured debt!!!! You're wasting your money if you do.

[freshstart44]

Did you have recent balance transfers, cash advances or credit card charges? Is so, maybe that is why he said to pay the cards. Otherwise, if you have not had any of these for the past 90 days, don't pay the unsecured debt. Save those funds for stocking up and or doing repairs.

s


We had some small charges to one or two accounts in the last couple months. Things like food, gas, other needed items. Nothing unnecessary. No balance transfers or cash advances recently.

I need to spend about 5K. The money is from a pension my husband cashed out and will be from our tax return.

I will focus on repairs, maintenance, stock piling non perishables, eye exams/glasses.

Any other suggestions?

Thank you all for your input : )

[AfraidOfBK]

car repairs....do u have kids? shoes in the next two sizes. I needed a bunk bed nd diapers for new arrival in MAy. I just played it safe and shopped on my debit card only at groceries, clothing stores for husbands work (like Mens Wearhouse) clothes, Target, Walmart....I have read on this forum that as long as youre not spending hundreds and thousands on Prada and Gucci, you can swing it as a necessary expense - because it is!

[freshstart44]

car repairs....do u have kids? shoes in the next two sizes. I needed a bunk bed nd diapers for new arrival in MAy. I just played it safe and shopped on my debit card only at groceries, clothing stores for husbands work (like Mens Wearhouse) clothes, Target, Walmart....I have read on this forum that as long as youre not spending hundreds and thousands on Prada and Gucci, you can swing it as a necessary expense - because it is!

Yes we have kids and those are great idea's. Thank you I will definitely try stocking up on things we will need.

Thank you for the advice.

[worriedmom]

allowed spending money before filing

Can I get cashiers checks or money orders for 1 year of escrow payments before filing? Reason being we usually use our tax returns for to pay our taxes and insurance on house. However, after a loanmod, they are requiring an impound account. We can easily afford our P&I pyment, but the PITI payment is pushing it if has to be made monthly. It has worked well for us to use our tax returns for this purpose each year. Now the mortgage company (CHASE) will not take the year's escrow payment in advance??? So need to put it into 12 monthly checks. Can I do this prior to filing chapter 7?

[barbj]

What about kitchen appliances? We could use a stove, fridge and dishwasher. Ours still work, but are getting old.