staying current on credit cards before filing?

[hawk25]

Is this a smart thing to do? I will need to file due to a dramatic decrease in income but I do have some extra money that will allow me to stay current and just pay the bare minimum for a month or two until I file. The only positive side I see to this is not getting a bunch of calls and letters. But is there a negative side to this?

[ssmdem]

You're throwing away money. Ignore the calls if you don't want to answer them. If you're filing soon, and you know for certain you're going to, don't bother. It's just a waste of money.

UNLESS -- have you made charges within the last 90 days?

[hawk25]

You're throwing away money. Ignore the calls if you don't want to answer them. If you're filing soon, and you know for certain you're going to, don't bother. It's just a waste of money.

UNLESS -- have you made charges within the last 90 days?

The question then becomes what should I do with the extra money? If i leave it in the bank, wont that just get distributed to the creditors? And no there were no charges lately.

[Maine]

Do you need:
Medical, dental, or eye care that you need?

Home repairs?

Car repairs, new tires, oil change?

Pay the lawyer if using one- that ate my "extra money."

You can have up to 6 months of groceries in most states---stock the pantry.

Get a haircut (not a $200 one though.)

Buy cleaning supplies to last a month or two.

Some states you can have a stockpile of hearing oil or wood to last for one year. If I could afford it I would have paid my yearly oil bill through next August. There were great pre-pay discounts.

Whatever you do make sure it is necessary expenses with allowed exemptions and save the receipts.

Do not: take it out in cash, buy a whole new wardrobe, buy expensive new furniture, take a vacation, or blow the money on other things you know will raise some eyebrows. Get creative, but stay honest.


Someone else will know for sure but maybe you can pay some of your bills a month ahead?

[ssmdem]

All of the above is great. Yes, your insurance premiums can all be paid for the year. If you're renting - pre-pay that.

Put money into a Roth IRA.

I had all prescriptions filled for 90 days - which for us, was a chunk of money. Vitamins, over-the-counter medicines you may need for the upcoming winter season

So, you still have money left now??

[OhioFiler]

The question then becomes what should I do with the extra money? If i leave it in the bank, wont that just get distributed to the creditors? And no there were no charges lately.

Don't you have an exemption to cover this amount? If you are only speaking of the minimum monthly payments it can't be too much cash.

[Maine]

Don't you have an exemption to cover this amount? If you are only speaking of the minimum monthly payments it can't be too much cash.

Some states have $0.00 cash exemption. I can wildcard up to $400 between cash on hand and any amount in my checking account. And that is only if I do not need to exempt a single $400 item in the house. (all household items are exempt only if under $200)

[hawk25]

[QUOTE=Maine;439632]Some states have $0.00 cash exemption. I can wildcard up to $400 between cash on hand and any amount in my checking account. And that is only if I do not need to exempt a single $400 item in the house. (all household items are exempt only if under $200)[/QUOTE/]

Can you use the wildcard on cash and bank accounts? My state's cash exemption is only 300. But I wont really be using much of the wildcard, so that would be great if cash in bank account counts toward it.

[Maine]

I don't think the actual wildcard can be used for cash/accounts. Definitely not in Maine.

We have $400 real property exemption which my lawyer said is "like a cash wildcard." Someone said their state has $1250 cash exemption...wish I lived there! Wish I had $1250 to exempt.

and we have up to $6000 any household goods wildcard but only IF we don't use our homestead exemption. (If I owned a baby grand or a snowmobile I could exempt them...wish I had bought a hot tub 4 years ago!!!!)

[OhioFiler]

Some states have $0.00 cash exemption. I can wildcard up to $400 between cash on hand and any amount in my checking account. And that is only if I do not need to exempt a single $400 item in the house. (all household items are exempt only if under $200)

Then spend it on necessities. Best of luck to you. I can't imagine not being able to protect a few hundred dollars.

[Maine]

Then spend it on necessities. Best of luck to you. I can't imagine not being able to protect a few hundred dollars.

No kidding! We sat down last night and made a list of all bills that need paid, the lawyer fee, then food and gas, and it looks like we will easily be under $400 in the bank. I don't even have to TRY to spend the money, I am more worried about running out of gas before payday, or blowing a tire, or anything else I can panic about!!! (maybe I should have budgeted some xanax in there!!!)

I am 40 years old but may have to call "mommy can you please buy milk and bread for your grandchildren"

[gmk]

Usually a wildcard is just that, a wildcard, use it for cash on hand, etc. IL has $4,000 per debtor, use it on anything, some use it for cash on hand, accounts or applied toward things like autos that have excess equity. AFAIK, use it on anything. You need to check your state's exemptions.

[keptdigging]

I needed $2,000 in dental work, $1,500 in auto repairs... most people here have put off tremendous amounts of maintenance on our vehicles, homes, bodies...

[tobee43]

we did stay current also to prevent the calls etc. i'm not sorry at all we did it...i owed the money and paid as long as we could. it really helped during a stressful time not to have the collection calls...we were also working on loan mod at the time. and, to apply for the modification we had to be 3 months behind before the bank would even work with us...so it was much easier for me to deal with ONE debtor as opposed to 10 during that time.

however, it's true...it's a big waste of your money...because if you are going chapter 7 they write it off anyway...

r attorney kept advising us to stop and then said as soon as we file we HAD to stop.

Filed Consumer Chapter 7 4/16/2010
341 meeting 6/2010
No-asset distribution report filed 8/4/2010
Discharged 8/4/2010

[hawk25]

we did stay current also to prevent the calls etc. i'm not sorry at all we did it...i owed the money and paid as long as we could. it really helped during a stressful time not to have the collection calls...we were also working on loan mod at the time. and, to apply for the modification we had to be 3 months behind before the bank would even work with us...so it was much easier for me to deal with ONE debtor as opposed to 10 during that time.

however, it's true...it's a big waste of your money...because if you are going chapter 7 they write it off anyway...

r attorney kept advising us to stop and then said as soon as we file we HAD to stop.

Filed Consumer Chapter 7 4/16/2010
341 meeting 6/2010
No-asset distribution report filed 8/4/2010
Discharged 8/4/2010

congrats Tobee on being done. That's good to hear, so there were no objections from creditors or the trustee on staying current? Were there any "preference" problems with paying anyone creditor more than $600 90 days prior to filling?