Buying things needed before filing

[Jacinta]

So if I file, which it seems inevitable there are a few things I need before filing. Like tires, breaks, and a new floor in my family room. I have store cards with plenty of room on them. Should I go ahead and get the stuff? I drive 110 miles a day commuting so I have to keep the car up.

[StartingOver08]

Are you planning to file BK?

You can not use the cards for a minimum of 90 days prior to filing and technically if you know you are going to file, you can not use the cards at all as it is considered abuse to use the cards when you know you are insolvent. The Trustees are very good at picking up on this kind of thing.

Now, if you want to spend your tax refund on maintaining your vehicles, then by all means do so.

[Jacinta]

I just paid my taxes by cashing in my last IRA. I need the tires and breaks. Will they let me buy such things later? What will happen if I use my charge? I just used it for Easter stuff for the kids.

[keepmine]

Time for a reality check.
Stop paying all debt you wish to discharge and use the money you were paying the cc's for living expenses.
You need to get used to living on a cash basis and a budget. If you still can't make ends meet then, bk isn't going to help.

[Jacinta]

Ok, here is what sucks! I have worked so hard all of my life to keep my credit in good standing. Now because I was forced to take a lower paying job and can't sell a boat I bought last year for half of what I owe on it I am sunk. That credit card has a limit of $17k and has been interest free for years! I hate to stop paying on it. I pay $400 a month and then charge expenses of $400 a month. It keeps my credit score up and it has a net zero effect on my finances. Now if I can dump the boat! I wonder if Bank of America would just let me walk away? Doubt it huh?

[keepmine]

As I said before-reality check time. You can't pay your taxes and had to raid an asset that was exempt in bk. You can't afford to get your car serviced and maintained and you had to charge Easter clothes.
Your finances are not close to breakeven.
Filing bk is the easy part. What comes next is a lot tougher. Post bk, you won't have access to cc's with high limits and low interest. You better figure out how you're going to support yourself post bk before you go further down this road.

[StartingOver08]

Keepmine is exactly right. The most important thing for you to do is figure out a budget and how to live with a cash budget.

Filing BK gets rid of debt only. Living on a cash budget is the hard part. You may need to take extra time to work on your pre-filing budget so when you file, you know where every dime goes. BK gets rid of the past - but you have to learn to live on your current income only. No supplements from CC's.