Question Going to retire, but too many debts

[hsecalls]

I am getting ready to declare bankruptcy...I have a job on the road, away from home 11.5 months out of the year. I am 80K in credit card debts. I can pay them all off, if I continue working five more years; but, I am 67 years old now. My boss is a real pain and the work is just not fun at all anymore.

I am planning to stop paying all bills now, retire in two months, and declare bankruptcy five months after that. Use the cash i make over the next two months to do necessary repairs to the house, have a major overhaul on my car so it will last, etc, etc.

Questions: How much cash can I draw out of my account in April if I don't declare BK until Sep/Oct.
Will creditors sue considering my bankruptcy won't be until 7 months after I stop paying them.

Any guidance anyone could give me would be appreciated.

[feelingnutsy]

You should be okay on the creditors---since it's usually at least 6 months before action is taken.

[espo1357]

I am getting ready to declare bankruptcy...I have a job on the road, away from home 11.5 months out of the year. I am 80K in credit card debts. I can pay them all off, if I continue working five more years; but, I am 67 years old now. My boss is a real pain and the work is just not fun at all anymore.

I am planning to stop paying all bills now, retire in two months, and declare bankruptcy five months after that. Use the cash i make over the next two months to do necessary repairs to the house, have a major overhaul on my car so it will last, etc, etc.

Questions: How much cash can I draw out of my account in April if I don't declare BK until Sep/Oct.
Will creditors sue considering my bankruptcy won't be until 7 months after I stop paying them.

Any guidance anyone could give me would be appreciated.

throw the cash in an IRA or protected retirement account, and then file.

You seem to be all over the place with this post, that I question your sincerity. Sorry if that is rude, but just calling it like it is.

Good luck.

[AngelinaCatHub]

I am getting ready to declare bankruptcy...I have a job on the road, away from home 11.5 months out of the year. I am 80K in credit card debts. I can pay them all off, if I continue working five more years; but, I am 67 years old now. My boss is a real pain and the work is just not fun at all anymore.
Once you get the mind set that you don't need the boss, he becomes less than an irritant. Get to the point that you can tell him to go to .... and walk away. Then you can live with it. Once a career becomes a "job", then it IS time to quit.
I am planning to stop paying all bills now, retire in two months, and declare bankruptcy five months after that. Use the cash i make over the next two months to do necessary repairs to the house, have a major overhaul on my car so it will last, etc, etc. I can go with that. Sounds good.

Questions: How much cash can I draw out of my account in April if I don't declare BK until Sep/Oct. I can't go with this. As one stated, put it into an IRA ASAP. Move very little cash in large amount at this time.
Will creditors sue considering my bankruptcy won't be until 7 months after I stop paying them. Probably not, but don't count on this. They could sue at any time. It only takes a letter first of intent, then filing fees, and a few days to a hearing.

Any guidance anyone could give me would be appreciated.

Your post does seem a bit convoluted. I would sit down in a relaxed mode, and think your future out very well. Yes you have a plan, but is it practical. Is your house paid? You live in FL so that is good, they cannot take your domicile. Make sure it is homesteaded of course. Have you attempted to take any SS? If not, since past 65, it will be pretty good. Are you married or have people obligations? More info is always helpful to give you more solutions. 'Hub

[hsecalls]

Thanks Hub

Yes, I have a house and homestead, so I have been told that won't be touched. My wife and I already draw SS. Also, I am retired military and draw a small pension from another company...& I am below the means test if my current job were discounted.

I have so many questions I don't know where to start.

So, assuming I stop paying bills in March and retire the end of April, then declare bankruptcy in Oct (by then I will pass the Means test), I have the following questions:

Q1: Spousal IRA Contribution - My tax liability for 2010 is 2.5K; however, if I put 2 or 3 K in a spousal IRA which I open before 18 April, my taxes will be reduced significantly. I have been advised not to do that.

Q2: If I stop paying bills in Mar & Apr, I will have almost 10 K when I quit in April. I have also been told I should not touch that.

Q3: We want to go to my niece's wedding in Nov. I understand that we can not buy the plane tickets in April, nor should we take any cash out of our account except for necessary expenses from here on out. This does not seem realistic as our declaring Bankruptcy will be six months away. Your thoughts?

Q4: I have three cars in my name. I have one that the amount I owe is what it is worth, I have another (I co-signed with my son and he is making payments) and I owe more than it's worth, and the third I own outright but it's trade in value is about 4 K (my daughter, and her two kids that live with us uses this). I plan on letting them take my son's; however will I be able to keep the one owned outright.

Q5: Lastly, I have a checking account with Wachovia, and I have no loans with them. I heard they will probably force me to close my account. Is this correct?

Appreciate any comments anyone may have.

[HHM]

One catch with IRA contributions, the IRA owner must be working at the time.

[Peeps]

Just a surface observation: if your daughter and her two kids live with you, it might be good to take a closer look at how that needs to be reported on your paperwork if you file for BK. It might affect your schedules I & J, which could possibly toss you into a Ch 13 even if your personal income falls below the means for a Ch 7. With good pre-planning, you could probably circumvent any issues.

As far as Wachovia goes, I'm not sure if they would force an account closure. But they are connected to Wells Fargo and some people have had their WF accounts frozen when they filed for bankruptcy. There are some threads on the forum about how people have handled this risk - if you use the search option at the top of the page you could probably find some options and see what worked (or didn't work) for other folks. Best of luck.