Help please! I have searched so much

[youngraduate]

Hello,
I am very new to BK but have learned a lot (because of this forum). I have searched and can not find any situation like mine.
My wife and I are having a baby and wanting to file Ch.7. We are going to give up a house, car, and a motorcycle.
We were scared that we were not going to find an apartment after the BK so we stopped making payments on the house a few days after we found an apartment. We got our tax return and would like to pay a few months rent on the apartment after we buy the baby essential materials.
Can the trustee take the tax money from the apartment complex if we pay them in advance?
I have been doing all the research myself as to not put extra stress on my pregnant wife. I got us into this mess by leaving a good paying job to go back to school (the baby was not in the mix at this time). We can just no longer handle all the bills.
So, is paying an apartment rent with tax money in advance preferential payments when we still "technically" own the home we are giving up. We are planning on filing next month or maybe early june.
Thank you guys so much you have helped already,
youngraduate

[keepmine]

I'd not file until, the baby is born and any unanticapted medical expenses can be listed in the bk petition.
I'd not prepay anything unless, your lawyer says it's OK.
Just spend it down with reasonably necessary living expenses.

[ROB37LAW]

I'd not file until, the baby is born and any unanticapted medical expenses can be listed in the bk petition.
I'd not prepay anything unless, your lawyer says it's OK.
Just spend it down with reasonably necessary living expenses.

You could always protect 5K in a roth ira.

[Mi Bankruptcy]

Just in case you were not aware you can't include any school loans in BK. You probably already knew that but wanted to throw that out there. Wait until you have the baby to file

[youngraduate]

Sorry I didn't get specific enough. I already filed and we have about 3000 left. Roth's I need to learn more about but that is an option.

[youngraduate]

I have thought about waiting til the baby is born and that is probably the best option, plus by then we could have used all our taxes on just living expenses.

Do you think it was a good idea to get the apartment before we filed or will they frown upon that? We are just scared and it is not just us we have to worry about anymore but also a little girl who is due in August. We live in an area and a house that we do not want to raise a baby so the wife and I are moving next week. We have talked to a few attorneys but they are little help when it comes to advice so all your help is much appreciated. I will be posting on all my experiences from the BK to help others just as you have helped us.

[keepmine]

I assume that when you say you've filed-you mean the tax return and not the BK?
If this is the case, get your housing situation taken care of. That's an acceptable use of a tax refund.
Also, no reason to be scared. You got time to plan this thing out. Get your new apt and the things you need for the baby.And, take your time and spend it down. File when the time is the most advantegous to you and that will be after the baby is born and any unanticiapted expenses can be included in the bk.

[youngraduate]

Yes keepmine you are correct we have our tax refund but have yet to file BK.

So, I can use the rest of the $3000 from our tax refund to pay a couple months of rent even if we have a house we walked away from and are not sending payments too?

I am just looking for some peice of mind here. We have never been like this. We always paid bills early and paid more than the minimum.

If we file in early Sept. after the baby is born do you think they will even ask about taxes?

Once again you guys are a huge help.

[spetkovich]

First: If you pre-pay rent in the apartment, those pre-paid months are an asset to you that would need to be declared. It would be best, in terms of avoiding headaches, stress, and possible litigation, if you just waited until the money was spent in the normal course of things.

Second: If you wait until September to file, the Trustee will most likely not ask you about your 2009 taxes. However, you will run the risk that a portion of your 2010 refund will be seized by the Trustee (since 9/12'ths of the refund would already have been accrued as of September). Not all Trustees pursue these fractional refunds until the very end of the year, in my district the cut-off date is typicall October, but it varies from state to state and district to district.

[JackBondLove]

Hello,
I am very new to BK but have learned a lot (because of this forum). I have searched and can not find any situation like mine.
My wife and I are having a baby and wanting to file Ch.7. We are going to give up a house, car, and a motorcycle.
We were scared that we were not going to find an apartment after the BK so we stopped making payments on the house a few days after we found an apartment. We got our tax return and would like to pay a few months rent on the apartment after we buy the baby essential materials.
Can the trustee take the tax money from the apartment complex if we pay them in advance?

You can only be one month ahead on rent (or anything else.) Anything else can be demanded back by the trustee.

I have been doing all the research myself as to not put extra stress on my pregnant wife. I got us into this mess by leaving a good paying job to go back to school (the baby was not in the mix at this time). We can just no longer handle all the bills.
So, is paying an apartment rent with tax money in advance preferential payments when we still "technically" own the home we are giving up.

The fact that it is "tax" money is irrelevant - it's the same as if you had the money sitting in your bank account the whole time. Renting an apartment because you have abandoned your home (i.e., by no longer making payments and moving out) is fine.