cash in bank while not paying cc

[Moneypenny]

Hi,

I did some extra work that is not going to be part of my 6 month lookback when filing. I got the money now. I thought it was enough to re-roof my house which needs it (keeping the house). It's not enough, turns out. So I have almost 5K in the bank now and I already just stopped paying cc bills this month. i have four minumums: 900, 350, 250, 150.

So, can I have this cash in the bank while not paying the bills? By the time I file in six months it could easily be gone, but now I have it and not paying the bills.

I am in California, reaffirming house and car, and have no other assets than this money, I think. And should have no trouble showing that my income and expenses (not counting the 5K) wont allow any payback.

So, can I keep this money in the bank as long as it lasts?

If not, what am I risking?

Fraud? Getting my case thrown out? Having to pay 5k money back to cc's (and how, if its gone when I file)?

I bet this is an easy question to answer if you understand the system. I dont understand though.

will get a lawyer in a couple months i think but need to know now.

thanks,

Moneypenny

[mamaluv]

It depends on if you are using the homestead exemption or not...if you are not then you can have up to 21k.

[StartingOver08]

Do you owe money to the bank where you keep your funds? In other words. do you have a cc that is affiliated with the bank where you keep your checking and savings accounts? If so, move your money. The bank can take your funds under the right of "set off" if you stop paying on a credit card of theirs without having to go to court.

Now, if the cc's are not affiliated with your bank, then you should be fine.

[Moneypenny]

its been a while since i looked at the fine print of CA exemptions. I am underwater in my mortgage. i think i am ok with 5k in cash at time of filing, but not sure about that.

but one of my question is: what about if trustee or someone else looks back six months ago (i.e. now) and sees I stopped paying my cc bills while I had money to pay?

i think i understand that exemptions work at time of filing, but are they retroactive to your behavior prior to filing, if you see what I mean

in either case, what is at stake here? Am I risking fraud, having the bk thrown out, having to pay 5k back (and how should I do that if so), if I am doing something wrong here, what is it exactly in a legal sense?

I hope you can be patient with me and this nitty picky questions, but these questions help clarify things for me.