Not Making House Payments...

[GWBcasualty]

what about the money you "make" or save by not making those payments...how do they effect your chapter 7?

I mean if we don't make six months worth of house payments we are like $15,000 ahead...I'm thinking that screws us when we go to file 7 does it not?

You can contribute to an IRA.

IRA money is exempt and making contribution ahead of bankruptcy is widely advised as good BK planning.

[discouraged]

If you haven't seen a lawyer yet, start interviewing them and ask how much you can exempt, check out NOLO, listen to what people are saying here etc. I frustrated myself because there is so much more I could have bought that I didn't really think about but in my state we can exempt what I do have since I don't have that much, but if I had a lot I would do as HHM suggests and rent another place so you will have the deposit and first/last months rent.

There are so many things you can spend down on. Think of what you will be consuming for the next 6 months - canned goods, paper products, coffee/tea/soda - these are all things you can stock up on and which you will need when you do move. You will be putting out that expense anyway in the future so plan for that future now.

My lawyer also suggested buying clothing (guess my wardrobe didn't impress him - lol). And again, new tires, battery, general maintenance for your car. These are all things you normally have to spend on - that is what my lawyer told me - spend on what you normally buy.