Rental Income due on the first and I am filing on the 4th! Help!!

[tyson24]

What can I do if the rent is late? They send it to me and it could possibly be late. I need to spend that money before filing correct? I have tons of house bills I could pay with that money just wondering if I need to wait until its gone??.

I am asking because it is due to me on the first. Would they question me?

[backtoschool]

Your bank account balance it noted on the date of filing. All money in your account must be covered by exemptions or the trustee will take it for the bankruptcy estate. I would wait to file until the money has cleared your account and been spent.

[tyson24]

They send me the money and I cash the checks at their bank so they do not bounce. I always have. Do I need to wait until that money is spent and I can prove where it went? Does it only matter what I have in the bank or how much cash I have total?

[tyson24]

And if it is due to me on the first but I do not have it yet, what do I do? I could photocopy the checks for proof for the trustee if i had to.

[backtoschool]

They send me the money and I cash the checks at their bank so they do not bounce. I always have. Do I need to wait until that money is spent and I can prove where it went? Does it only matter what I have in the bank or how much cash I have total?

Your cash in total at the time of filing has to be covered by exemptions or it can be taken by the trustee. You should wait to file and spend the money and save your receipts. If you spend the money on necessities there should be no issue with the money spent.

[tyson24]

Thank you backtoschool! You are an indelible resource to all on here

[tyson24]

Just an update:

My attorney now thinks we may be able to use federal exemptions and exempt our cash. We found out that we owe $203,00o on our house and the value is $205,000. We have some leeway there as well as a wildcard.

[backtoschool]

Just an update:

My attorney now thinks we may be able to use federal exemptions and exempt our cash. We found out that we owe $203,00o on our house and the value is $205,000. We have some leeway there as well as a wildcard.

That's great news! The federal exemptions allow you to use your unused homestead exemption, so that should be more than enough to cover the rent.

[tcreegan]

Hi all,

My attorney now thinks we may be able to use federal exemptions

Shouldn't he/she KNOW this? You can use federal exemptions in AK, CT, DC, HI, KY, MA, MI, MN, NH, NJ, NM, PA, RI, TX, VT, WA, WI (as of 2009)

Maybe by 'may' they mean 'it would be better for you to use'....

If you don't need the homestead exemption, that federal wildcard sure is nice!

Tom in Colo

[tyson24]

Tom,

The federal lets you double the homestead too from what I have read. I think this way too, we can exempt our tax refund.

The closer it gets, the better I feel. I am in MN. I only need like $3000 of the homestead exemption. I can use the rest for other stuff right? Or is it only for the home?

Doubled that would be like $42,000 for the homestead. these laws sure can be confusing for the lame ;)

[backtoschool]

Tom,

The federal lets you double the homestead too from what I have read. I think this way too, we can exempt our tax refund.

The closer it gets, the better I feel. I am in MN. I only need like $3000 of the homestead exemption. I can use the rest for other stuff right? Or is it only for the home?

Doubled that would be like $42,000 for the homestead. these laws sure can be confusing for the lame ;)

You can use it on pretty much anything. You can double it if you are filing jointly.

[tcreegan]

Hi again tyson24,

The feds allow unused homestead exemption up to something around 10K, but not the full homestead exemption.

Doubled so figure around 20K of federal wildcard since you only have a little equity to exempt.

Tom in Colo