What do you do with all the "extra" money?

[Amy26]

I also thought we'd have sooooo much money. The mortgage on my house was almost 2k a month, I had at least 1.5k in credit card debt per month and I was paying 700 a month to live in my friends house (cause we have renters in my home). Then a car payment, insurance, groceries, home things, travel etc... So, when we stopped paying everything I thought we'd be rolling in money.

But then the lawyer told us we could go ahead and get own place to live (and to spend a lot on it!) so we did that... and now that we're living strictly on cash it seems like there is never enough. We have/had like no household items whatsoever... I moved to another country and then got laid off overseas and had to come back... so, had no money to bring my stuff back with me. Pretty much just the clothes on my back.

So, now we're struggling just to buy a vacuum cleaner... lol. We had to pay the lawyer for this and a lawyer for my husband's US immigration... my cat had to go to the vet last week, so that was 133 dollars.

When I was using credit it was just so easy to overlook the things you were charging. Like having emergency vet bills or a flat tire or just stuff you don't think that you are spending on when you use credit cards.

So, we're having a hard time adjusting to this and also trying to buy ourselves some furniture and household stuff.

In summary to a long winded post, you may "think" you will have lots of money left over... but really when you start living cash only you become sooooo much more aware of the things you need/want to buy.

[crescentmoon]

We've actually been cash only since last November (not by choice, but its been a good change!). I don't know how on earth we've managed to hang on this long, given how much our minimum payments have been (and our lawyer couldn't believe it either!). But, luckily, we haven't picked up a credit card in nearly 8 months.

Of course, I did just find that we had a couple of recurring charges on credit cards that we had forgotten about, so I just cancelled those, and I hope it doesn't throw us too far off course from filing. The charges were under $100 total, so I'm hoping we don't delay another month or two, while we wait for that magical 90 day period.

[debtmonster]

Save the money and pay CASH for a car or use it for a HUGE down payment. That's what I am doing. I am hoping to have $10,000 down by early next year to put on either a Honda Civic, smart car, Toyota Yaris, Scion xB or something cheap.

[LuciluS]

You need to check with your Attorney to see how much money you can save and exempt. Also, if you receive a Federal Tax Refund and think you may have one coming in 2010 for the year 2009, it is important your Attorney try to exempt that money also.

If it comes down to only able to exempt your 2009 Tax Return, by all means, spend the money on household repairs and vehicle maintenance. We took are large 2008 income tax return refund and put new tires on both of our vehicles and also had our privacy fence repaired. We had plans to spend the rest on house maintenance, but, unfortunately, hubby was hospitalized for over a week and off work for almost a month. So if the Trustee wants to know where the money went, all we can say is it was spent to make the house payment, car payment and utilities.

I think States have different amounts of money you may have in your checking account on date of filing. That amount does not include any outstanding checks which have not cleared. If you file on a different date from the date of your Bank Statement, you will need to print a copy from your PC on the date of filing or go to your bank and get a copy from them.

We have basically used the Cash Method since last Oct. It was not easy, especially at Christmas time. The only presents we gave, were $20 to each of our 3 grandkids college fund and a $10 bill for each. We just told the rest of the family members we were broke.

Just received Friday an Insurance Benefit on the hospital bill in April. We owe the hospital $1,695.12 and that is after insurance pays. So guess, we will be putting that bill in our BK petition. After closing of our Bankruptcy, I may try to set up a payment plan, as this is the closest and best hospital and I'm afraid they will not admit us, unless it is an emergency.

Dh's pay has been cut as he is a Truck Driver and when there were no goods being made, there was no freight to be hauled. At least he got paid some monies each week. I'm on Social Security Disability. It was stated several months ago there would be no cost of living raises for 2010 which will be the 1st time in over 35 yrs. no raise. That tells me, we are still in a Recession, despite what the news media reports.

We will be filing our BK on 9/30/09 using Gross Income from Mar.-Aug. 09. Good Luck with your Bankruptcy.

Luci

[LuciluS]

Save the money and pay CASH for a car or use it for a HUGE down payment. That's what I am doing. I am hoping to have $10,000 down by early next year to put on either a Honda Civic, smart car, Toyota Yaris, Scion xB or something cheap.

Hope you plan on buying this vehicle before you file BK as I don't believe there will be anyway you can exempt $10,000 in Cash. Don't you live in Florida and your Car Exemption is only $1,000 or am I wrong?

Luci

[debtmonster]

Hope you plan on buying this vehicle before you file BK as I don't believe there will be anyway you can exempt $10,000 in Cash. Don't you live in Florida and your Car Exemption is only $1,000 or am I wrong?

Luci

If you buy it before you go BK, they will take it because it will have too much equity. I am planning on buying the car many months after I file. That's when I can start stock-piling most of the money.

I am giving back both of my cars in the BK. Both of them have too much negative equity.

My plan is to get a new day job (I have none now) and save up cash. We're living with family now and will have no bills other than utilities, food, gas, car insurance, phone. No rent or mortgage. So instead of paying a rent or mortgage for the next 6+ months, we will be stockpiling that cash to go towards a brand new car. I am hoping to get a car no more than $17,000 to $20,000 out the door after taxes and then put the $10,000 down towards this. I have to put such a huge down payment because the interest will be sky high thanks to the bankruptcy.

I've already spoken with a couple car dealers. They said buying a car is no problem as long as it says "DISCHARGED" on the credit report.

Like I said in other posts, my lawyer thinks that I will be able to keep my car for a substantial amount of time. He will fight the lift on the automatic stay and keep me in the cars. That way I won't have to buy a new car within 30-60 days of filing.

I told him about the people on here having to give their cars back on day 61. I asked him how he was able to keep me in my car a long time and why the people on this forum are giving back their cars so early. He said that's because they attorney's for the people here are not fighting the stay. Most attorney's are lazy and will not want to go through the hassle. If I can keep my car from now until February, I should have a way to save $1,500+ per month. Rent + car payments would come out to $1,500. Since I'm not paying that, I get to bank it.

So far most of my money has been going to legal fees. I didn't make my car payment this month, nor did I pay on my Rooms to Go account, so that saved me almost $400 right there. I used that money to go towards my new lawyer this month.

[tempron]

The living on "cash only" lifestyle, well..has truly changed my life and view of money completely. In my adult life I have never known the true value of a dollar until I filed BK, and the I don't look at anything the same way regarding purchases, value, costs, etc. First I have learned what true needs are in life that actually make me happy, and discovered that I don't need much! Affluenza = Cured!

[OKBK]

I donate my extra cash to a safe.

[LSUTiger32]

We had the same "problem". Of course dropping $1,400 on the attorney helped solve that problem a little and we are now way ahead on the bills we are keeping instead of way behind. For instance, I don't owe a house payment until 10/1 and I don't have a bill due until 11 days from now. We used to be 11 days behind on 11 things!

We also used some of the extra money to stock up on things like groceries, paper goods, etc., things that they won't possibly come after.

[CindyLou]

In addition to home maintenance.....go to the dentist, get new glasses, bring the pets to the vet...buy a better mattress....do the things you have probably been neglecting over the last few years! It's amazing the things we neglect just to pay our credit card bills!!

[booboo]

Just Start Saving, Like you never saved before.....

BooBoo

[inacorner]

When I'm all said and done I'm gonna relax. Also get back into the FX market.

[needachance]

You cannot save before your 341. They will take what is in your accounts and they ask about cash on hand and it probably isn't in your best interests to lie about it to the trustee.

Stock up. Get medical/dental/vision care. Update the computer. Buy some shoes for winter. I actually bought my kids GOOD school supplies for the first time in 8 years!

[LSUTiger32]

Yeah, incase I didn't make that clear.....spend the money right now on living expenses. You don't really want to show up at the 341 with $5K in the bank. That could end bad. I had well over $2,000 in payments per month that I am not making now but I did mine fast. I can see if you wait 6 months say that you would have quite the little war chest built up!

[booboo]

It would depend on your State Exemptions. In Oregon you can have up to $7500 cash on hand that is exempt. Check on your State Limits.

BooBoo