Need some input on planning from the experts here...
I received an unexpected large tax refund ($13k). I plan to file a 7, if and when my mortgage company agrees to a workout (I am about 19k in arrears). If I am unable to get a workout before the redemption date (mid August) we may file a 13 (in which case the refund would not be as big of an issue). I can wait to file if needed. No suits are pending against me as yet. Most accounts have yet to charge off - though I have disclosed to them that it is my intent to file BK.
So, what (if anything) can I spend this money on without raising any red flags at the time of filing?
I will e-mail the attorney I have consulted with this question also, after I receive a few answers here and decide where we are leaning on using the monies, if at all. Mostly just to confirm and/or compare his answers to those that may be offered up here.
There are many things the family could use
1) Braces for my two oldest - probably $8k.
2) I could payoff our remaining auto loan about $4k balance and about $6k kbb retail value - but then that becomes an asset.
3) I could pay off our DVC timeshare - little perceived value - but may be able to be sold for $6-7k - current balance $4k.
4) I am thinking of trying to settle our second mortgage with Chase as it is wholly unsecured (19k balance - settle for 3-4k?) - they won't even talk to me about this as yet since we are only a little over 90 days past due.
5) The entire family could use a vacation (likely frivolous and unwise at this time)
6) I could save up and likely use the 13k toward the 19k we are in arrears to bring our first mortgage current - this may be the best option as I am perceiving that this would not be a preferential payment and then I could easily file the 7 as the first and second would be current at time of filing.
Not sure of the best route to go though - any thoughts, ideas, or input on
this subject?
I received an unexpected large tax refund ($13k). I plan to file a 7, if and when my mortgage company agrees to a workout (I am about 19k in arrears). If I am unable to get a workout before the redemption date (mid August) we may file a 13 (in which case the refund would not be as big of an issue). I can wait to file if needed. No suits are pending against me as yet. Most accounts have yet to charge off - though I have disclosed to them that it is my intent to file BK.
So, what (if anything) can I spend this money on without raising any red flags at the time of filing?
I will e-mail the attorney I have consulted with this question also, after I receive a few answers here and decide where we are leaning on using the monies, if at all. Mostly just to confirm and/or compare his answers to those that may be offered up here.
There are many things the family could use
1) Braces for my two oldest - probably $8k.
2) I could payoff our remaining auto loan about $4k balance and about $6k kbb retail value - but then that becomes an asset.
3) I could pay off our DVC timeshare - little perceived value - but may be able to be sold for $6-7k - current balance $4k.
4) I am thinking of trying to settle our second mortgage with Chase as it is wholly unsecured (19k balance - settle for 3-4k?) - they won't even talk to me about this as yet since we are only a little over 90 days past due.
5) The entire family could use a vacation (likely frivolous and unwise at this time)
6) I could save up and likely use the 13k toward the 19k we are in arrears to bring our first mortgage current - this may be the best option as I am perceiving that this would not be a preferential payment and then I could easily file the 7 as the first and second would be current at time of filing.
Not sure of the best route to go though - any thoughts, ideas, or input on
this subject?
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