How to use a refund in Kansas before filing?

[jitteryjewel]

We decided to file for bankruptcy in Kansas due to Medical Bills way over our head! We are pretty dirt poor right now and own one car valued $2000 at best and rent our house. No fancy expensive electronics unless you count our $300 Walmart special Toshiba laptop my family got me as a gift last year. I'm really not worried to much about losing anything we own (besides our car we need it with 3 little boys and work) but I was curious about how they consider household property. My son has a video game console, my other son a roku box, little gifts they got for birthdays and holidays. Could they really take my kids property away? It's a long shot I know but it makes me sick thinking about the process!

My next question: We are expecting a big refund this year on our taxes! I'd love to save it to help with food, bills and other needed things but I read in Kansas you get no exemptions for refunds and no cash allowance or savings exemptions. So everyone is saying use it or lose it! So me being a person just eeking finds it hard to buy something I consider not necessary when I really need to spend it on the things to survive stuff over time you know? I had medical insurance it just wasn't enough! I never bought a bunch of things I couldn't afford? But medical collectors are killing us been sued garnished etc and we just don't have the means to give them the arrangements they want. The interest they are awarded is compounding ugh!

So in Kansas what could I do with the refund before I file that would be considered exempted in a bankruptcy but be most beneficial? I guess I'm hoping someone has a better understanding of how to make this work because I'm lost! I was told that paying back relatives is a big red flag which really sucks. But we plan to get our bills, rent and stock up on food, have the car serviced and get kids clothing to make it till next spring but it still leaves a big chunk to spend. Wow I never thought in my situation I would be afraid to spend money when I need so much! Help!

Lastly, am I correct in understanding in Kansas my husband and I each get our own separate exemptions such as we can both have a car under $20,000 and such? Do they take that into consideration when considering household stuff? Our total income was like $21,000 total last year for a family of five (try living on that anywhere other than rural areas) so I know we qualify. I'm just trying to proceed cautiously so we are not hurting even more. I do plan on using our refund to pay for the bankruptcy though. Thanks in advance!

[ValleYum]

We decided to file for bankruptcy in Kansas due to Medical Bills way over our head! We are pretty dirt poor right now and own one car valued $2000 at best and rent our house. No fancy expensive electronics unless you count our $300 Walmart special Toshiba laptop my family got me as a gift last year. I'm really not worried to much about losing anything we own (besides our car we need it with 3 little boys and work) but I was curious about how they consider household property. My son has a video game console, my other son a roku box, little gifts they got for birthdays and holidays. Could they really take my kids property away? It's a long shot I know but it makes me sick thinking about the process!

Brand new, a Roku box sells for about $100 and a PS2 for about $150 - I sincerely doubt a Trustee would bother with them as he could only receive garage sale prices for them. But, I too, worried about the silliest of things, when filing for bankruptcy. List them under your personal property perhaps under the heading of Children's Toys and Belongings. Your laptop should be fine too! Computers are practically out of date the moment you leave the store with them these days.

My next question: We are expecting a big refund this year on our taxes! I'd love to save it to help with food, bills and other needed things but I read in Kansas you get no exemptions for refunds and no cash allowance or savings exemptions. So everyone is saying use it or lose it! So me being a person just eeking finds it hard to buy something I consider not necessary when I really need to spend it on the things to survive stuff over time you know? I had medical insurance it just wasn't enough! I never bought a bunch of things I couldn't afford? But medical collectors are killing us been sued garnished etc and we just don't have the means to give them the arrangements they want. The interest they are awarded is compounding ugh!

So in Kansas what could I do with the refund before I file that would be considered exempted in a bankruptcy but be most beneficial? I guess I'm hoping someone has a better understanding of how to make this work because I'm lost! I was told that paying back relatives is a big red flag which really sucks.

Don't do this!! It is a huge red flag!!

But we plan to get our bills, rent and stock up on food, have the car serviced and get kids clothing to make it till next spring but it still leaves a big chunk to spend. Wow I never thought in my situation I would be afraid to spend money when I need so much! Help!

*Prepay your car insurance for a year. *Put 4 new tires on the car and have it toally serviced - belts, transmission, etc. *Have needed dental work done. *Buy new glasses if anyone wears them. *Buy a year's worth of grocery staple items including soap, detergent, shampoo, etc.

Do you have a lawyer yet? Start interviewing so you can pay for your lawyer with your tax refund money!! Your attorney can also give you good ideas about spending your tax refund and what the Trustees in your area will let you have.

Lastly, am I correct in understanding in Kansas my husband and I each get our own separate exemptions such as we can both have a car under $20,000 and such?

Except for the homestead exemption, it looks as though all the other exemptions are doubled when you file bankruptcy jointly. So, yes, you could each have a car under the 20k limit.

Do they take that into consideration when considering household stuff? Our total income was like $21,000 total last year for a family of five (try living on that anywhere other than rural areas) so I know we qualify. I'm just trying to proceed cautiously so we are not hurting even more. I do plan on using our refund to pay for the bankruptcy though. Thanks in advance!

Good luck with all that you do!! Keep us posted on your progress!!