When can we start saving our $

[NewStart2012]

Hello all! We recently filed for ch7. We don't have a 341 scheduled yet. Reading the threads, many advised to save money from not paying creditors and/or house payments. When can we start doing this? Is it after the discharge? TIA!

[keepmine]

Go ahead and start saving now.

[AngelinaCat]

Do it now. It is never too early to start. You might want to consider hiding a $100.00 bill in each your wallets for an 'Emergency on the Road' Fund. Forget about it until that true emergency arises...

[NewStart2012]

Thank you keepmine & Angelina Cat. We do plan on saving now, and like the $100 idea ;) Thank you!

Guess I should clarify however - How long can we legally start saving in our bank account where the trustees won't go in and take from us? TIA

[AngelinaCat]

Thank you keepmine & Angelina Cat. We do plan on saving now, and like the $100 idea ;) Thank you!

Guess I should clarify however - How long can we legally start saving in our bank account where the trustees won't go in and take from us? TIA

Anything you earn and save from the day after you filed, is yours to do with as you wish. The only exceptions are an inheritance you become entitled to within 180 days after filing; income tax refunds--depending on your district; any monies owed to you; and judgements or settlements owed to you. If I have forgotten something, someone will chime in and say so.

Good wishes to you.

[NewStart2012]

Thank you Angelina...that was what I was looking for

Love this forum!

[tobee43]

i agree! start now! we started to stick a few bucks under the mattress, before we realized it, it turned into a shoe box!!! then i started feeling uncomfortable and we opened up a safe deposit box.....and then we took the dive back into investing last november!

it was scary, but we purchased a bond that made over 3k in less than ONE year, it's the best return we have ever had! now, we have a certain amount we take out monthly for our savings, you will be so surprised how it builds up to a nice nest egg. the only problem now i'm facing is, while i'm trying, and will be paying off this mortgage in 20 months, as we have been paying the down the principal in leaps and bounds, do i continue to put more into my savings or should i even put more on my mortgage. LOL!! certainly not something i would ever be concerned about before we filed. we have never been able to save like this! nor, ever think we would really own a home out right.

[NewStart2012]

That's wonderful Tobee Thanks for sharing!

If you need tax write offs, wouldn't it be better to keep saving rather than paying down the loan? If not, then maybe you should pay off your mortgage so you can be "free and clear" sooner rather than later. In any case, nice problem to have ;) Glad things have turned around so nicely for you!

[tobee43]

That's wonderful Tobee Thanks for sharing!

If you need tax write offs, wouldn't it be better to keep saving rather than paying down the loan? If not, then maybe you should pay off your mortgage so you can be "free and clear" sooner rather than later. In any case, nice problem to have ;) Glad things have turned around so nicely for you!

well it was a small shoe box!

i use to think that exact way, but the interest is so little at this point, i can make that up by giving some of my old clothes to the salvation army LOL! just the thought of not having to pay the mortgage is just a great feeling to look forward to.

the time we really needed the tax write offs is when going from a really high income to no mortgage interest or taxes (which in those days was over 10k a year). but i used a really creative way to get a tax break by donating most all our rare plants and trees on the grounds to the state's botanical gardens. nothing better than having a huge tax break with a receipt from a STATE!! LOL!! the following year was all the moving expenses, every year trying to cover those taxes! so there are ways around not having mortgage interest

[NewStart2012]

Hmmm...in that case, I'd vote for getting rid of your mortgage! Sounds like you're creative; so tax breaks won't be an issue for you ;)

[ValleYum]

We are investing with our 401k funds!! Contrary to most investment advisers, we are investing in hubby's company stock.

Railroad stocks are doing incredibly well right now. Hubby does not work for them but the Canadian Pacific (symbol CP) has gained over 25% in value since January 1st!

We have been incredibly fortunate enough to start contributing 10% of hubby's pre-tax income post-bankruptcy to his 401k. We started the month after discharge. Our rate of return this year has been over 15%.

Tax note: Since we have the contribution taken out pre-tax it reduces our taxable income. This helped us enormously since we were trying to offset the loss of our mortgage interest deduction.

[tobee43]

We are investing with our 401k funds!! Contrary to most investment advisers, we are investing in hubby's company stock.

Railroad stocks are doing incredibly well right now. Hubby does not work for them but the Canadian Pacific (symbol CP) has gained over 25% in value since January 1st!

We have been incredibly fortunate enough to start contributing 10% of hubby's pre-tax income post-bankruptcy to his 401k. We started the month after discharge. Our rate of return this year has been over 15%.

Tax note: Since we have the contribution taken out pre-tax it reduces our taxable income. This helped us enormously since we were trying to offset the loss of our mortgage interest deduction.

i personally think railroads are or should be the "thing" of the future! in europe railroads are the number one way to travel, as they should be here. i mean if they build a super railroad to go across country it would supply so many jobs, both in labor and in manurfacturing! also, using other means of fuel as opposed to gas to run them. i mean it's perfect!!! a GREEN railroad! yes! i would invest in that.

actually, our little investment we did do was a new community college. as i believe and most of us know the higher education cost are out of hand. and those
attending and graduating from all those nice universities are finding no jobs but all that loan debt. so for me, it was a no brainer, where more and more are going to chose to attend local community colleges to save themselves from debt. so far, so good also, this is a tax free bond.

hahaha!! NewStart, i always worry about the taxman!