I think I have buried myself!!!!

[toomuch]

In October, I finally filed taxes for 05 and 06. Got back a total of 17K.
I also got a cancer policy benefit of 7K.
We have been so broke and behind in bills for so long, over a year, that we blew a lot of the money.
Some went for hired help when I was going through radiation. I bought a few clothes as I lost a lot of weight. We caught up on misc household bills, electric, cable, phone, etc....

My daughter got married and I gave her 1K, plus paid some of the wedding expenses, but not a lot.

Bottom line, I don't have receipts for where it all went. I have a lot of receipts, but not all. I have a cat rescue and do spend quite a bit for that.

It's January now. I won't be filing until at least June.

If the trustee sees how much money we got back for taxes, and I can't forget it will also show on our 2007 earnings, what all is he going to want see?

I wanted to take the money and pay cash for a car, but then I got scared about it being paid for and the trustee taking it so I bought an 05 Camry with 70K miles on it and am making payts. My stepfather cosigned with me for that.

I have made some repairs to the house.....electrical, plumbing......some carpentry work.

Sorry for rambling, but after reading this board for a while tonight, I don't know what to do to *fix* my screw up.

Hubby just got a notice today that his wages are being garnished starting this week. Ga is 25%.

Our income definitely doesn't cover our bills anymore since I got sick and haven't worked since August. So the tax money did help to catch up on living expenses.

Please don't flame me. I know I have screwed up royally and at 53 years old, it just isn't acceptable.

Is there any damage control I can do at this point?

Sorry so long. We are over 130K in secured and unsecured debt. I just want to keep our house. No matter what.

Thanks for listening, even if no one knows what to tell me....other than agree that I have buried myself.

Toomuch

[Flamingo]

No one is going to "flame" you on this forum. Be prepared as to the money because more than likely will be questioned as to where the money went and you may have a problem listing paying for your daughter's wedding and costs for your cat rescue as you well know. You need to make a detailed listing of where the money went and be able to explain why if asked. Without receipts I would make it as detailed as possible as to payee, dates, etc. Also, you will need to look at what are the priorities in your life now. I would certainly look into having someone take over the cat rescue to save you some money there since it's apparent it is a service you just cannot afford. It's hard to do lifestyle changes but when a financial crisis hits, it becomes a necessity to make major cuts in certain areas of our lives. Best of luck to you.

[toomuch]

No one is going to "flame" you on this forum. Be prepared as to the money because more than likely will be questioned as to where the money went and you may have a problem listing paying for your daughter's wedding and costs for your cat rescue as you well know. You need to make a detailed listing of where the money went and be able to explain why if asked. Without receipts I would make it as detailed as possible as to payee, dates, etc. Also, you will need to look at what are the priorities in your life now. I would certainly look into having someone take over the cat rescue to save you some money there since it's apparent it is a service you just cannot afford. It's hard to do lifestyle changes but when a financial crisis hits, it becomes a necessity to make major cuts in certain areas of our lives. Best of luck to you.

When I went for my first consultation with an attorney a year ago, she told me I only needed to produce 3 months of paycheck stubbs, and I think 6 months bank statements and 2 years tax returns.

So, I didn't think I had to have receipts now....except maybe 6 months prior to filing.

So, what happens if I am honest and lists the wedding, cat rescue and any other things that the trustee will frown on. Will we simply not be able to file? Or wait longer?

As far as checking accounts, I've read time after time where people don't use theirs anymore than they have to for fear of it being frozen by a creditor. We have hubby's paycheck stubbs to show what's coming in. I can produce paid bills to show where his paycheck goes.

Thanks,

Toomuch

[Flamingo]

When I went for my first consultation with an attorney a year ago, she told me I only needed to produce 3 months of paycheck stubbs, and I think 6 months bank statements and 2 years tax returns.
So, I didn't think I had to have receipts now....except maybe 6 months prior to filing.
So, what happens if I am honest and lists the wedding, cat rescue and any other things that the trustee will frown on. Will we simply not be able to file? Or wait longer?
As far as checking accounts, I've read time after time where people don't use theirs anymore than they have to for fear of it being frozen by a creditor. We have hubby's paycheck stubbs to show what's coming in. I can produce paid bills to show where his paycheck goes.

Thanks,

Toomuch

You will find that certain people have to produce more or less than what you are told by an attorney in the State in which you reside. While one may have to provide 1 year of information, the other only 6 months. In any event, your tax refund is going to show on the tax returns you have to take in and where it went more than likely will have to be explained. It may not have to be explained but since you are providing documentation listing it and you received the refund in 2007, just be prepared to give an explanation if asked.

[FreshLikeADaisy]

Toomuch, just FYI, the thing with checking accounts is limited. You only have to be careful with bank accounts if

a) you are being sued by a creditor (or already have been); they can then get a judgement, which will in turn allow them to, at the court's discretion, garnish your wages, seize your bank accounts, etc. A lot of this (what and how much they can take) varies by state law.

b) you have other debts at the same institution where you have your checking/savings account. Often these are "cross-collateralized", meaning that when you signed up for that credit union's Mastercard, you agreed to allow them to take funds out of your checking and/or savings to cover any arrears.

c) on occasion, a creditor whom you have paid via "check by phone" or allowed to debit your account electronically by any other means will reach back in your account and grab again, using the previous authorization as grounds. That you thought it was for one time only is irrelevant. Legally, it's shaky, but there's not a lot you can do about it when it happens; I think they count on you not being able to fight back.

Of these scenarios, b) is a lot more common and a lot more nasty than a), because they take the money with no notice to you at all. At least if you're sued you'll get some sort of notice. c) doesn't happen a lot, but it does happen.

If none of these apply to you -- you've never done checks by phone or automatic debits or the like, you've not been sued, and you have no other debts at the same bank -- you are probably okay with the checking and savings staying where they are. If only b) and maybe c) apply to you, then move your checking and savings to another bank. If a) applies, regardless of the other scenarios, you need to go cash-only until your bk is complete.

Hope this helps!