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Please help me spend this money.....$50k

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    #16
    Originally posted by signal View Post
    seriously you all this is no joke.

    Look this is a huge upset to me. I worked my butt off for this company, and I never thought they would get bought out. I am not losing my job.

    My wifes breast reduction is a medical issue, the breasts hurt her back, but its very difficult to get through the insurance company but I will try. She is already having a double hip replacement this year and carpel tunnel surgery so I mean she has enough surgeries on her plate.

    My lawyer told me NOT to put any to IRA......he said that would not go over well, same with the mortgage principal paydown.

    I am not saying 50k would not make a dent in my debt, it would. But it would not fix it so I dont have to file. I have an upside down house, and alot of unsecured, so 50k does not fix the situation.

    I thought about gambling it to try to get more money to pay my creditors, but my lawyer told me that was a bad idea, to just spend it.

    I am a manager, so new suits and some shoes would cost some $$$ but last me another 5-10 years or more. I could chance a few items I need for the house, I dont know, he said to email him a list of things before I bought them.

    If anyone has been in this situation, please let me know what you did. Its not a good situation to be in. My company payout was a once in a lifetime thing for me, it was going to be a big thing for me, and now it will just be the biggest upset.
    I understand that you are upset Signal. But I simply do not see how you are going to buy $50k of goods and services without incurring the wrath of the trustee. That is a LOT of money to try to spend as discretionary income in a year or so. I think you are going to have to let some of it go. Just my opinion....
    You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

    Comment


      #17
      Why not put it in your bank and keep living like you are living. Live noramal and keep paying your bills. Buy what you need, save like normal in your IRA's and pay your minimum payments. With $50K you are not insolvent. Just keep paying your bills, keep your house up, take care of your medical expenses and dental, upgrade some worn out appliances, get new windows, upgrade your car, take normal road trip vacations and you will find that living normal will take you about a year. Then things will start getting tight again and if you find you are still insovent then you take the last few thousand to pay for your attorney and stop paying your unsecred creditors. Right before they sue you you will probably be 2 years out from your income windfall. Who knows, maybe your situation may change and you won't need to file. Or maybe something bad may happen and you rack up hundreds of thousands of dollars in medical debt and you will be glad you held out. Live life normal, don't abuse the system and if you still need to file down the road then you just file.

      Comment


        #18
        I would suggest a consult with a second lawyer.

        I have seen cases where mortgage pay downs and IRA/401K max-outs were litigated and decided the trustee couldn't do anything about it.

        Your lawyer is probably right that for some particular reason it won't work in your case, but over $50,000 I would get a second opinion just to make sure.

        Comment


          #19
          what to do

          put the money in cash Dont file for at least a year ,use some of the money to hold off lawsuits it takes years to win a lawsuit if you fight it,They dont go back all that far financially so try to age the money and enjoy it probally cost ya 5000 to fight a lawsuit

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            #20
            This post pisses me off. I mean I would not have even considered filing if I had 50k to put into my responsabilities.

            Sounds like compete abuse and scummy.

            Your are talking about 100% FRAUD and I really hope it comes back to bite you in the ASS.
            Filed 9/14
            341 10/22/09
            Trustees report of no distribution 10/26
            Scheduled for discharge 12/22

            Comment


              #21
              At the start of our process and planning, I had a similar situation. The number was different, 35-40k, if I recall.

              We looked at a lot of things that had been neglected.

              We are also in Florida.

              One thing of importance in FL is this: You CAN improve your homestead with non-exempt money up to the day before filing.

              This has been litigated repeatedly and the debtors always win.

              From a practical standpoint, consider:

              Backup whole house generator. The one we got (48kw propane) ran about 14k. Then you need a sizable tank, and need to fill it. 500 gallons at a few bucks a gallon will add up.

              We spent on some needed things like medical and dental. We had a thread about this, and I am sure you can find it if you run a search. we received some excellent advice and put much of it to use.

              I am surprised your attorney said not to pay down the mortgage. I have seen many cases where this was not only allowed by the courts, in FL (only), but was in many ways encouraged by the rulings. I know of only one case where the court wavered. In that particular case, a man from New York moved to a multi-million dollar home in the Miami area and stuffed money obtained by securities fraud into the mansion. Even then, he was allowed to keep the homestead under Florida law. However, the opposing creditor won an equitable lien. That means, if he ever sells, they get paid. But the homestead was STILL protected. That case was before recent changes to make residency harder to establish in BK cases.

              Good luck to you. Think hard enough and you will find the right purchases.
              11-20-09-- Filed Chapter 7
              12-23-09-- 341 Meeting-Early Christmas Gift?
              3-9-10--Discharged

              Comment


                #22
                Originally posted by Shakin View Post
                This post pisses me off. I mean I would not have even considered filing if I had 50k to put into my responsabilities.

                Sounds like compete abuse and scummy.

                Your are talking about 100% FRAUD and I really hope it comes back to bite you in the ASS.
                I disagree with you, strongly.

                50k, in the face, of say, 400k or so in debt (or more), would not help a bit. In fact, it would be wasteful to try to use it in the face of a large amount of debt.

                Circumstances are relative, and because that seems a large sum to you, or me, or anyone, does not make it a windfall capable of changing the OP's situation to a large enough degree to be considered fraudulent.

                Fraud is a specific legal term. It has a strict definition that only applies in a narrow set of conditions. None of the OP's statements suggest this is fraudulent. Quite the opposite. I believe in planning for BK as much as I believe in planning for tomorrow.

                If there are legal reasons for spending this money, and the purchases are within the law, it is not fraud. It is the consumer using the law as effectively as creditors do.

                Posts like yours irritate the heck out of me. You seem to be saying, "It is OK for creditors to use every ounce of legal maneuvering to gain from the debtor. BUT it is NOT OK for the debtor to do the same."

                Hogwash.

                I guess we will disagree, which is fine.
                11-20-09-- Filed Chapter 7
                12-23-09-- 341 Meeting-Early Christmas Gift?
                3-9-10--Discharged

                Comment


                  #23
                  Originally posted by DeadManCrawling View Post
                  I disagree with you, strongly.

                  50k, in the face, of say, 400k or so in debt (or more), would not help a bit. In fact, it would be wasteful to try to use it in the face of a large amount of debt.

                  Circumstances are relative, and because that seems a large sum to you, or me, or anyone, does not make it a windfall capable of changing the OP's situation to a large enough degree to be considered fraudulent.

                  Fraud is a specific legal term. It has a strict definition that only applies in a narrow set of conditions. None of the OP's statements suggest this is fraudulent. Quite the opposite. I believe in planning for BK as much as I believe in planning for tomorrow.

                  If there are legal reasons for spending this money, and the purchases are within the law, it is not fraud. It is the consumer using the law as effectively as creditors do.

                  Posts like yours irritate the heck out of me. You seem to be saying, "It is OK for creditors to use every ounce of legal maneuvering to gain from the debtor. BUT it is NOT OK for the debtor to do the same."

                  Hogwash.

                  I guess we will disagree, which is fine.
                  I totally agree with you DMC. There is no fraud in the OP posts, intent, or circumstances. I do think however, that trying to spend 50k in a year and not have any of it go back to the trustee is attempting to defy the law of bankruptcy physics. I simply think that is too much money to spend without some negative consequences re the bankruptcy. I think the OP should spend where he can and be mentally and emotionally ready to let the rest go. Trying to spend every penny of the money will keep the OP in the past and postpose a fresh start in my opinion.
                  You can't take a picture of this. It's already gone. ~~Nate, Six Feet Under

                  Comment


                    #24
                    Depending on what and how the OP spends the 50K, it could very well not raise an eyebrow with the trustee.

                    We first consulted with a lawyer in July of 2008 and his advice was to plan our BK. We planed to file in Nov of 08. In Jan of 2009 I inherited 50K--our lawyer advised waiting 6 months to file and the income would drop off the 6 mo. lookback.
                    Here is how I spent the 50K

                    Bought a quick books program
                    Paid off 25K in back taxes
                    Paid out of pocket the closing costs on the inherited house
                    rebuilt the fence line
                    caught up with 2008 taxes
                    Purchased health insurance
                    lots of car repairs ( ooooold cars)
                    spent normal utilites and household expenses ( my business is slow in the winter so income is down)

                    That held until work picked up again in late spring.
                    Our look back was Feb to July--50k was off the look back period. It was an unusual happening, that 50K,--but would have seriously changed our chances at a CH7. As you said, once in a lifetime.

                    OP, I do think if you have the written support from your doc. that your wife needs the breast surgery--that could fly just fine. There are lots of things that insurance does not pay that are necessary to good health.

                    If you are going to keep your house seems like it might be a good idea, as other posters have suggested, to put some money into it.

                    Best of luck to you.
                    Filed Chapter 7 August 18,2009
                    341 scheduled for Oct 7, 2009--DONE!
                    Report of No Distribution Oct 8, 2009
                    Discharged & Closed Dec. 14, 2009

                    Comment


                      #25
                      house repairs. I could do 50k in repairs in a month. Clothes give everyone on here 200 bucks. IT would help alot of people. Get it in cash in a safe take a pic. Break a window and it got stolen. then pay the house down at 63 after discharge. LOll That was kind of a joke. OR a illegal way to hide it if you want. I can understand not wanting to give it away for nothing. I owe a few people i would rather burn everything i own then see them get a cent. A bank and a credit card charging company cost me my company and my credit. They ant getting cent one out of me. Buy alot of food. Ohh i know your in florida but money makes great insulation in walls.

                      Comment


                        #26
                        signal-- I just went back and read some of your previous posts and see that the house is part of the problem.

                        Is it possible for you to wait to file BK until these monies are out of the 6 month lookback period?
                        Filed Chapter 7 August 18,2009
                        341 scheduled for Oct 7, 2009--DONE!
                        Report of No Distribution Oct 8, 2009
                        Discharged & Closed Dec. 14, 2009

                        Comment


                          #27
                          Originally posted by Shakin View Post
                          This post pisses me off. I mean I would not have even considered filing if I had 50k to put into my responsabilities.

                          Sounds like compete abuse and scummy.

                          Your are talking about 100% FRAUD and I really hope it comes back to bite you in the ASS.
                          You've been here since March and haven't read about bk planning???
                          "Knowledge is power."
                          Try reading a bit.
                          (and spell check)
                          1/15/10 Filed ch7 2/18/10 314 meeting
                          2/22/10 Report of No Distribution
                          4/20/10 Discharged 5/20/10 Closed!

                          Comment


                            #28
                            Originally posted by Shakin View Post
                            This post pisses me off. I mean I would not have even considered filing if I had 50k to put into my responsabilities.

                            Sounds like compete abuse and scummy.

                            Your are talking about 100% FRAUD and I really hope it comes back to bite you in the ASS.
                            Why does someone else' situation irritate you? It reads as though you haven't dealt so well with your jealousy issues.
                            Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick

                            Comment


                              #29
                              Agree with the other posts recommending TIME. Time between the money and filing is absolutely essential, as much as you can manage.

                              Unless you have judgments in place already, or looming garnishments, I would spend the money and wait as long as possible.

                              If the house is too expensive to hang onto, try to recognize that honestly and objectively before you sink any of this 50k into it. That would be an even greater tragedy, to imrpove the home, then lose it or decide to surrender it.

                              There are myriad solutions to spending down 50k, and the more time you can add between now and filing the better.

                              In our case, as I said, the number was 30-35k. We thought we were taking a big chance by spending it down, but have survived three fulle YEARS until we finally were forced to file by a debtor's exam Cap One requested.
                              Last edited by DeadManCrawling; 12-15-2009, 06:18 PM.
                              11-20-09-- Filed Chapter 7
                              12-23-09-- 341 Meeting-Early Christmas Gift?
                              3-9-10--Discharged

                              Comment


                                #30
                                "There are myriad solutions"

                                Thank you for using the word myriad correctly
                                7-2-2009 Filed
                                8-28-09 341 Concluded, no assets
                                10-28-09 DISCHARGED/CLOSED!!!!

                                Comment

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