Question How to spend cash on hand before filing?

[onthebrink]

I spoke with a BK attorney and am considering filing Ch 13. We have about $50K in checking and savings. They said we should get this close to zero before we file. We are going to open up Roth IRAs but then we still have some money leftover.

Our home and car need lots of repairs and if we file Ch 13 my understanding is that for 5 years we would have no money to apply to fixing these repairs and the problems are only going to get worse and these are all pretty expensive repairs to fix. Can we use our cash on hand to pay for these repairs? We live in California.

Here are some of the examples of the repairs that are needed:

Home
- The house has not been painted in over 20 years and the exterior paint is starting to crack. It is the only property in the neighborhood that is in this condition. It would cost about $7K to get the home painted. Moreover, we live in a condo and the home owner's association might claim that we owe these monies for upkeep of the property.
- Our kitchen and bathroom floors are cracked.
- Our dishwasher is broken.
- Our hardwood floors are all scratched up and stained.
- Some of our interior walls are cracked.
- Our bathtub is cracked.
- Our bathroom sink is broken.
- Our garbage disposal is broken.
- The roof is leaking
- Some of our light fixtures need repair

Car (10 years old)
- The windshield is cracked
- The transmission needs to be repaired
- The body is dented

We have not put any money into the house or car because we have been living paycheck to paycheck but if we have the choice we would, of course, rather do these repairs now than have to give the money to the trustee or go five years and have the car and home get into even worse shape.

I have also put off going to the doctor to have some tests I need to get done because I am unemployed and the insurance I have has a very high deductible.

We are meeting with the attorney again next week and will ask but wanted to get opinions. BTW, is there a list of reasonable expenses?

Thank you

[Overmihead]

I'm just confused about your statement that you are living "paycheck to paycheck" and putting off important things if you have 50K in savings & checking?

[forgotten]

I'm just confused about your statement that you are living "paycheck to paycheck" and putting off important things if you have 50K in savings & checking?

That was my first thought.

[forgotten]

also... you live in a condo in that poor of repair, you owe a million dollars on it... and are going to try and keep it?

[onthebrink]

I received a severance check and reimbursement for business expenses when I was laid off for roughly this amount otherwise we would not have any money. We are going to try to keep the condo even though we understand we may not be able to keep it. I just want to try to understand all my options given current circumstances.

[forgotten]

It blows me away that a 2 bedroom, 1 bathroom place that seems to be falling apart could be worth $990k in this housing market.

My home is 8 years old, 4 bedroom, 3 bath, finished bashment, solar heating system, with a 20x40 inground pool and has a current market value of less than $200k. I realize we are in way different locations... but still... just amazing to me.

Nothing personal... I just find it fascinating.