Cash left over from Student Loans

[chg]

I am going to have cash over the tuition, that is meant for depended child care while i am in school, for the remainder of the semester. this is a legal use of these moneys according to the gov

I obviously do not want it sitting in my account when I file, what is the best thing to do, to just cash the check and hold onto cash for that expense? Try to prepay them? Or put it on a debit mastercard?


CHG

[bluediamond2077]

id like to know this as well. I am living on mostly student loans with about $400 a month from my job and i get left over money in my account all the time

[Exployer1234]

You can only have a certain amount of cash on hand or in a checking account when you file. Student loan money is not exempt, so if you have more money left over from the loans and it is more then the state allows the trustee can take it to pay your creditors.

You should not try to hide the money, because the trustee sees the list of funds you have received when you submit your paperwork. If you try to hide the money your case could be dismissed.

I would suggest fixing your car, home repairs, stocking up on groceries, and other necessities. Just don't spend more then 500 dollars at a time unless you are paying your lawyer.

I had to do this with my student loans right before I filed, and yes the trustee did ask what did I spend the remaining money I had left from my student loan and tax refund check. I told him I paid my lawyer, paid for my summer session of school, and fixed some needed issues on my car. He said all of those things were fine.

[bakergrl]

Pay the daycare ahead of time when you get the money and make sure you get a receipt.