Spending down accounts and exempting cash

[jonance]

Hi,

Will be filing an individual non-consumer chapter 7 (spouse not filing) in Jan most likely. My wife and I both work so we have money still coming in and some money in accounts. I've met with several attorneys and they are all a bit varied on opinions so i thought i'd get some here.

Firstly, if i have cash in joint bank accounts at the time of filing how is that handled. We have two joint accounts. I will not have extra wild card b/c i have too much home equity and will have to "buy back" a bit of it...and also some equity in a paid off vehicle to buy back. But I don't think i will have to use the entire $10k personal property exemption (federal)...can I use what is left over of that after valueing household goods, etc...on cash in accounts?

On spending, i need to spend some money fast. The mortgage payment, bills, etc will wipe out one account (or close), but the other which my wife had always deposited ONLY her checks in has about $4k in it. I've been told by two attorneys she can drop in an IRA, by another (that i'm' using) that he'd rather her NOT do that. I can prove my money has never gone to that account though. Any thoughts?

Any other ideas on spending some money. Looking into a new A/C is that OK? Can I withdraw cash and then deposit in her solo account that won't be part of the BK a bit at a time? Like i said, i can show, if needed it was HER money. Not sure how that works though...

Thanks
John

[keepmine]

Don't transfer money to your wife. You are heading for a big preference/insider transaction issue if you do that. Once it hit your account, it became your money and not hers.
Buy the new AC. Paint the house, new gutters, whatever else would be considere maintence issues is an acceptable use of funds.
Also, get any dental work done that you and your family may have neglected. Eye exams and glasses. Auto repairs and maintence. All are acceptable uses of money.

[Ineedhelp2]

What about paying three months ahead on insurance? How about advance rent payments? Is there any amount of advance payments that would be looked at as excessive and not allowed?

[dspii]

You need to involve an attorney either way.....but don't transfer money to another person. Do you live in a community property state? I'm sure there are others in this forum that have a similiar case, but I am confident that you need to spend any excess cash on worthwhile expenses as listed in an earlier post. Be absolutely sure your wife accounts are protected, exempted and isolated from the estate. Again an attorney with experience in this type of BK and familiar with your local court is your new best friend...choose wisely.

[keepmine]

What about paying three months ahead on insurance? How about advance rent payments? Is there any amount of advance payments that would be looked at as excessive and not allowed?

I'd not do any of those things unless, you have a habit of prepaying months in advance. Run these ideas by your lawyer first.

[dms0122]

When should one spend additional cash by? Prior to filing or prior to the 341? Is additional cash what is left over aside from allowed expenses, ie mortgage, auto payments, etc.? Does anyone know the allowance for additional cash in FL. At the time of filing, hopefully at the end of this month, I will have around 1K in account extra. I figured in around 4 months from now, I will have appox. 5K extra. Should I be worried???

[LimpDisc]

When should one spend additional cash by? Prior to filing or prior to the 341? Is additional cash what is left over aside from allowed expenses, ie mortgage, auto payments, etc.? Does anyone know the allowance for additional cash in FL. At the time of filing, hopefully at the end of this month, I will have around 1K in account extra. I figured in around 4 months from now, I will have appox. 5K extra. Should I be worried???

They look at the amount you had in the accounts on the day you filed for BK. So if you need to spend some of the cash, do it before you file.

[StartingOver08]

Fl exemptions are extremely small except for the homestead exemption. If you are not keeping your home (surrendering) then you have $1000 for auto; $4000 for ALL personal property (including cash). Husband and wife may double. Look at this link for details: http://www.legalconsumer.com/bankrup...mi+Beach%2C+FL

[dms0122]

Fl exemptions are extremely small except for the homestead exemption. If you are not keeping your home (surrendering) then you have $1000 for auto; $4000 for ALL personal property (including cash). Husband and wife may double. Look at this link for details: http://www.legalconsumer.com/bankrup...mi+Beach%2C+FL

Yes, I am keeping my home and filing jointly. I will just spend down my bank account on early bills before the day of filling to show barely any balance to be safe. thanks