? re stop paying mortgage and cc

[bkinaz2011]

I am filing in about 5 or 6 months. my lawyer said to stop paying cc 90 days before filing. we are surrendering the house so once I stop paying everything, I will have an extra 3500 a month sitting in my checking account. After I pay off the attorney, how do I use the funds, approx 7500? I can only have 300 in the account on the day I file.

[tcreegan]

Hi bkinaz,

I am filing in about 5 or 6 months. my lawyer said to stop paying cc 90 days before filing ...this is kinda odd, the 90 days is usually for 'stop using' the cards. Stop paying is usually the day you decide to file. Might check on this.

Some people use excess cash to get a new place to live, but you might be able to stay in the house for months, shame to start paying rent when you can live payment-free...but 1st, last, and a security deposit eat up a chunk of dough. Some people get dental work done, glasses, medical not covered by insurance, and getting the vehicle situation squared away...if underwater on car loans and surrending them in the BK, buy a good, reliable car. Some $$ can be parked in an Roth IRA, IRA but ask your atty how much b4 it grabs the trustees attention. Back taxes you aren't discharging. Whatever you do, be sure to run it by your attorney just to be safe.

Good luck with it, and welcome aboard!

Tom in Colo