newbie question- feeling lost

[hurdygurdy]

Hi there.

My husband and I are planning to file in a couple of months. I am a little confused about some things around exemptions.

Is the money in your accounts calculated at the time of filing and then that's it? For example, we are not reaffirming our home and it will get foreclosed on. We will be riding out living in it for as long as possible, but will need to save up first and last month's rent. Can we start saving money after filing?

Also, this is probably a stupid question, but when do you stop paying on your bills to creditors, assuming you are still managing to pay some of them? After you file?

What about an HOA? We have an HOA for our home and if we stop paying it, they could turn off the water. Can we continue to pay the dues after we stop paying on the house?

Thanks for any insights in advance. This forum is a wonderful resource and it's nice to be able to learn from people who understand what you're going through. Thank you.

[LadyInTheRed]

Hi there.

My husband and I are planning to file in a couple of months. I am a little confused about some things around exemptions.

Is the money in your accounts calculated at the time of filing and then that's it?

Yes.

For example, we are not reaffirming our home and it will get foreclosed on. We will be riding out living in it for as long as possible, but will need to save up first and last month's rent. Can we start saving money after filing? Yes

Also, this is probably a stupid question, but when do you stop paying on your bills to creditors, assuming you are still managing to pay some of them? After you file? If you are certain you will be filing BK, you should stop paying unsecured creditors now. An exception to this may be if you made a large purchase on a credit card recently. You should probably keep paying secured creditors. Otherwise, they will foreclose sooner. You also may need those payments for your means test.

What about an HOA? We have an HOA for our home and if we stop paying it, they could turn off the water. Can we continue to pay the dues after we stop paying on the house? I don't know the answer to that one.

Thanks for any insights in advance. This forum is a wonderful resource and it's nice to be able to learn from people who understand what you're going through. Thank you.

Have you had free consults with attorneys yet? If not, do it as soon as possible. They can help make suggestions for planning your BK.

Welcome to the board! Do you play the hurdygurdy?

[lrprn]

My husband and I are planning to file in a couple of months.

Which chapter are you planning to file - Ch 7 or Ch 13?

Is the money in your accounts calculated at the time of filing and then that's it?

Yes, if you are filing Ch 7. If you are filing Ch 13, then the cash money you have in your accounts *MIGHT* matter later depending on the need to modify your original plan and the reasons for it.

Can we start saving money after filing?

Yes, regardless of which chapter you plan to file.

...when do you stop paying on your bills to creditors, assuming you are still managing to pay some of them? After you file?

Unless there are reasons to continue to pay your unsecureds (getting distance from charges that could be problematic before filing, etc), most lawyers will recommend stopping paying them as soon as you know you are going to file bankruptcy. During your free initial consultations with 3-4 bk lawyers in your area, put this on your question list to ask.

What about an HOA? We have an HOA for our home and if we stop paying it, they could turn off the water. Can we continue to pay the dues after we stop paying on the house?

HOAs can be tricky when you file bk. Depending on the terms of your HOA agreement, you may have to continue to pay the HOA fees until the mortgage lender takes ownership of the home. This is another question to ask during your free consultations.

Good luck and welcome to BKForum!

[hurdygurdy]

We're planning to file Chapter 7.

I'm concerned about the HOA because we live in a condo community and if we continue to live in the house while going through the BK, things could get messy. We have some very nosy neighbors who can be terribly inappropriate- on top of everything else I don't want to fear walking outside my house. I know in the long run that's a moot point, but I'm trying to minimize our stress. Also, our dues technically pay for our water and trash and I'm concerned they might have the water turned off. So I'm not sure if paying the HOA would be viewed as a utility? We'll see, I suppose.

LadyintheRed, no I don't play the hurdygurdy. They cool instruments, but I just like the word. It's fun to say.

[ryan]

On the HOA it can sometimes depend on how much power they are granted by the state.
In my state, HOA can actually evict a homeowner for non-payment of dues if you get pretty far behind. In looking into this I find it rarely happens, but it has occurred. In that example you still own the house, but can't occupy it! ...usually they will threaten to lien the property after a lawsuit or may even file a FC action.

Hard to say whether they would attempt to shut off water etc.?

From what I understand, you will be able to discharge the dues in arrears UP TO the date of filing, but will be responsible for dues after that until FC sale transfers title to new owners. This whole topic is something I would discuss with attorney to make sure you aren't in jeopardy. Good Luck!