Money saved from not paying mortgage

[Justpoor]

I got a job today! So now I can start saving money since I stopped paying the mortgage a while ago. If I stash the money does the trustee ask what I've done with it? I want to file 7 and luckily the new job is below the median income. I hear people say they saved enough to almost buy a house in cash.

[momofthree]

Stashing money that you don't claim as as asset in BK is fraudulent.

[Flamingo]

If you have not been paying your mortgage/bills due to job loss and then get a job and continue not to pay your mortgage/bills, be prepared to do some explaining. Your last sentence is a big wake up call to everyone in debt as to where your money goes.

[StartingOver08]

One of the points of filing BK, besides wiping out the debt, is to effectively draw a 'line in the sand' for pre-petition funds and post petition funds you earn. You can save your funds after you file. Anything you earn prior to filing you have to declare or exempt. It sounds like it may be in your best interest to file more quickly so you can begin to save!

[HakunaMatata]

Congrats on securing employment! Familiarize yourself with local exemptions...exempt, don't stash! If you find you have more money than you can exempt, it's time to catch up on car repairs/maintenance, medical/dental care, annual insurance premiums, and other necessities...lest we not forget attorney fees (if applicable).

[Justpoor]

Ok, so I guess I didn't word that correctly. I finally have enough saved for attorney and moving costs. I don't intend to keep the house and so don't want to pay the mortgage. I let a car, motorcycle, and boat get repo'd so i don't have those payments and was wanting to get the unsecured portion of those wiped clean. Once I move out and have rent to pay i will definately pass the means test as the new job is below the median by $10k. But what do I do with the extra "rent" money for now? I want to start my emergency fund because things will be tight after the Bk and won't have credit cards to fall back on. Or should I just go get my fillings turned to crowns even though that can wait until my insurance kicks in. Ugh! Thank you all for your help.

[ItsJustMe]

Do you have yearly or biyearly expenses that you could pay? Like a years worth of car insurance, new tires, etc. Things that you will probably need during/after the bk when money is very tight. I think you're smart to plan ahead, just remember that 'cash' savings isn't the only kind of preperation you can be doing.

[OhioFiler]

Ok, so I guess I didn't word that correctly. I finally have enough saved for attorney and moving costs. I don't intend to keep the house and so don't want to pay the mortgage. I let a car, motorcycle, and boat get repo'd so i don't have those payments and was wanting to get the unsecured portion of those wiped clean. Once I move out and have rent to pay i will definately pass the means test as the new job is below the median by $10k. But what do I do with the extra "rent" money for now? I want to start my emergency fund because things will be tight after the Bk and won't have credit cards to fall back on. Or should I just go get my fillings turned to crowns even though that can wait until my insurance kicks in. Ugh! Thank you all for your help.

Having eliminated all those payments are you certain your schedules I and J will not show disposable income? Just being under the median doesn't automatically qualify one for Chapter 7.

[Justpoor]

Hi. Ohio I took the means test for the county and will still pass. My new job is half of what I used to make. Which is just fine with me because after this past year I really wanted a lower stress job and I knew that would mean lower pay. It's with a very stable company so I feel safe and great benefits. I still have a car payment and utilities and cell phones for myself and my boys.

Itsjustme, thanks for the idea about the car insurance. I will try to prepay all of my annual expenses. And I will get the dental work done before the BK too. If anyone has any other ideas of how to spend it now but on things that will save me in the future that would be helpful. I'm not creative. Thanks everyone.

[momofthree]

Have any annual car maintenance coming up? Need new tires? brakes? etc.

Will your kids need new clothes or shoes soon? I know in preparation of our 13 filing, we went out and bought 3 years worth of tennis shoes for our kids (still young and outgrow them quickly).

If you get really desperate, you can always stock up on things like toilet paper, canned goods, cleaning supplies, etc. that you will always need and won't expire quickly...