questions about saving money durring bk

[god077]

spoke with attorney and have lots of questions

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ok so i'm going to file c7
my lawyer said i will be able to live mortgage/bill free for up to a year. he said that i am not able to save any of the money that i am saving from not paying my bills. he said that i will have to spend all the money on anything that is not considered an asset. My question is how does the trustee know weather or not i am spending the money or just keeping it for a rainy day? do they require that i keep a spending log of all the money i have or keep and show proof of all purchases. i would really like to save this money so it can help me start over in life. please respond back with any information that might help or similair sistuations.
thank you

[JRScott]

Your lawyer realizes that the Trustee could try a totality of circumstances to dismiss your lawsuit if you show considerable ability to save money after filing.

Generally you are safe to save money after the 341 meeting. Prior to that you should spend on allowable expenses such as dental care, eye care, medical check up, car maintenance etc.

[aces67]

For us our house NEEDS work done on it. I'm not talking about cosmetic stuff to make it look pretty I mean stuff like the back and front door are broken, you can see sunlight coming through the windows, the water well occasionally stops on it's own. The roof needs to be repaired. Our lawyer told us to spend any money we have on that kind of stuff.

For us though we are keeping our home and one of our vehicles and since dh's hours have been cut we don't have a lot left over.

[JRScott]

yep home repairs are allowed expenses

[OhioFiler]

...you can see sunlight coming through the windows...

Hey! That's NOT a bad thing!

[god077]

i'm not keeping my home. so i can't put money into that. heres another one for you. While i am in the process of filing bk can i rent at another location while still residing at my primary address, i will need to spend equal amounts of time at both locations. And durring bk do you need to keep reciepts for all purchases made. i just don't want to waist a bunch of money that i could be saving.
thank you

[aces67]

Hey! That's NOT a bad thing!

Depends on how you look at it. My electric company LOVES it. LOL

[tinfoilhat]

spoke with attorney and have lots of questions

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ok so i'm going to file c7
my lawyer said i will be able to live mortgage/bill free for up to a year. he said that i am not able to save any of the money that i am saving from not paying my bills. he said that i will have to spend all the money on anything that is not considered an asset. My question is how does the trustee know weather or not i am spending the money or just keeping it for a rainy day? do they require that i keep a spending log of all the money i have or keep and show proof of all purchases. i would really like to save this money so it can help me start over in life. please respond back with any information that might help or similair sistuations.
thank you

I've had attorneys tell me they need 60 days to 6 months of bank statements (depending on the attorney)
I few times I've responded back telling them I have that plus every reciept to match.
They all said they don't need reciepts.

I'd assume they need the statements for proof of the money moving around.

So.....I haven't done it yet but if I find a reciept on the ground for a cash transaction from someone elses necessities I'm headed for the ATM and stapling that reciept to the ATM reciept and stashing the ATM money under the bed.

[Amy26]

Yea mine only asked for my current bank statement at the time I retained him and then I needed statements as of the date I filed. And mine also said I didn't need to keep receipts...
I certainly hope this dude knows what he's doing and I don't get continued when I get up there cause he told me I didn't need all this stuff.

[chad9162]

You only need receipts when you're trying to claim something above the IRS standards for expenses. Bank statements are usually the last 6 months to a 1 year. Some attorneys ask for the bank statement the day you file, because whatever is in your accounts is part of the BK estate.

OP, Florida doesn't have great exemption for personal property and cash like other states. Your lawyer, hopefully knows best, but I don't see why you can't fund a Roth IRA for you and your spouse. I think you can deposit $5000 per individual. Since all retirement accounts are exempted I don't why you couldn't. The beauty of a Roth is that its funded with after tax dollars so you can withdraw the deposited money at anytime. If you withdraw earnings you pay taxes and penalties, but its a small amount. This is what my attorney mentioned.

Tinfoils idea is not wrong either in the sense that if you start moving large sums of money the trustee might assume you're trying to hide it.

[fyi2]

....sigh...
I wish i had this problem

I need more money so i can wonder when and how to save/spend it (envy)

[god077]

thank you everyone for your help, i will let you know hoe everything goes. I'm praying for the best. just a little info for anyone . my sister lives in NC and she is also chapter 7 she had her 341 meeting today and no creditors showed up and she said it lasted about 7 min tottal. she was very relaxed