Help! Spending Cash Before Filing.....

[reg]

Very ashamed right now...I met with a BK attorney on Monday for my initial consultation. I was foreclosed on and condo was sold 3/2/11, he advised me to file. I forgot to ask him something very important. I got sober in 2004 and turned my life around. In 2010, I lost my job, condo and had to leave my family and take a job out of state. In November 2010 I relapsed. There are about three weeks where I had ATM withdrawals of $100 - $200 every other day. I put myself in rehab in January for 30 days. I went back to work out of state and relapsed again for a week (about 14 days ago). Again, I had daily ATM withdrawals for a week. This money is gone, spent on drugs. My family and I decided I needed to come home where my wife and sober friends are to focus on my sobriety and getting my life back in order. I'm very worried about these withdrawals and how it may seem that I've been stashing money or something. Probably will be filing in the next couple of weeks.
Is this going to be an obstacle to filing? Thanks for your help!

[octoblonde]

I'm not sure, but I would assume you have medical records from being in rehab. I would recommend getting a copy so you have proof of a drug addiction problem. Good luck to you!

[Peeps]

Hi Reg,

Sorry to hear about your situation. Without knowing the financial details around your filing, I think it's safe to say that the withdrawn money could at least create some issues that your trustee will want to talk to you about. I doubt it would result in a vigorous challenge. You could be asked to pay the amount back to the trustee if you file within the timeframe for presumed abuse.

Without wanting to sound too intrusive and again, without knowing the specifics of your BK, I would offer up an suggestion: focus on your health and well being before jumping into a BK. If you should happen to rack up some medical treatment costs in the interim and eventually decide you need to file BK (thus erasing those medical costs), then so be it. If the time can be spared in terms of your filing date, focusing on you, your life, and your family's welfare might help you have a stronger "fresh start" after the BK. It lets you distance yourself from those cash withdrawals, too. Just a thought. Whatever your choose, I wish you all the best.

[reg]

Peeps, thanks for the reply and your kind words. Here's my situation: possible future deficiency judgment (foreclosure - about $30k), possible taxes on 1099, 8k in CC debt, no assets, unemployed at the moment. Used to make $20k working last job. Lawyer thinks I should file right away because right now we are a few thousand over the median income but he says he can get us under with means test. My old "good" job is possibly hiring me back in the next week or two at $35k. My wife makes about $45k, is not filing, and has about $100k in student loans. She has no disposable income, so digging ourselves is not really an option. I'm mainly considering filing to protect against future deficiency judgment, and my fear is if I don't file now and get one in the future, I won't qualify to file. Any advice?

PS When I lost my job back in 2009, my wife was able to add my children and I to her excellent insurance, so I have no medical bills.