Home improvements prior to BK?

[Diesel73L]

We are going to be filing due to high (almost $70K) credit card debt. Right now we are both working-my job is safe but my wife will be laid off in July, so between now and then we will actually be saving a lot of cash by not paying on our cards. Our home could use some work in certain areas but I'm wondering what would be permissible vs. what would raise a trustee's eyebrows prior to BK:

Front porch-the original owner of our home built the porch out of non-pressure treated wood. As a result it's literally rotting off of the house. My FIL (he's a licensed contractor) would help me rebuild it properly if I can supply the materials. Would this be considered a repair or some sort of extravagance? The back porch is the same deal-it needs to be replaced.

Finishing our basement. Our basement is about half finished right now-I couldn't afford to keep going because card minimums kept going up. Basically I just need materials (lumber, trim, paint, etc...) we needed the space because the 2nd bedroom in our two bedroom house is now occupied by our infant daughter.

New stove-Right now only one burner works on our 30 year old Maytag stove. I already tried replacing them-the problem is with the wiring. Its probably also dangerous as there is a funny burning smell if you try to turn any of the bad burners on. If we buy a run-of-the-mill electric stove with our newfound cash is that going to be an issue? Also, do home appliances count toward our exemptions or are they considered part of the house itself (its underwater so no worries there).

[momofthree]

The porch & stove shouldn't cause a problem. Finishing the basement might not be seen as a necessity. As always, consult with an attorney.

[Flamingo]

Emergency repairs that are not cosmetic in nature (i.e., leaking roof, broken leaking windows, etc.) probably would not raise eyebrows. Anything cosmetic would. All repairs would need to be documented with receipts and to be on the safe side, for any badly needed, emergency repairs, take photos. As momofthree stated, before doing anything, consult with the attorney who will handle your bankruptcy to be on the safe side.

[JackBondLove]

Anything that fixes an existing problem would be allowable. Anything that improves the property would be considered as a hindrance to the creditor to collect.

My own experience - I bought my home on virtually the eve of filing BK. With available cash prior to the filing, I got sand pumped under it (since water would collect there after raining) and got the driveway and carport repaved and raised since it was so low that water could collect there as well - these were existing problems that needed fixing (cost $3200). After filing, using an IRA distribution, I got the carport converted into a garage (of course, the repaving was done in such a way to facilitate the eventual carport conversion) - this was an improvement (cost $2000).

I would say that finishing the basement would be an improvement. However, anything done to the basement to improve it's ability to keep water out, or its structural integrity, etc., would be a fix.

As for the stove, I would hire an appliance repairman to get an official inspection and estimate to fix. Of course, the cost to fix will probably exceed the cost of a new unit - and if it did not, then you could point out to the trustee that you bought a new unit with a cost in excess of the cost of replacement, and that you would have no problem paying the BK estate the difference (i.e., with post-BK funds.)

[nohoneymoney]

You should have no problem replacing broken appliances or cars etc. Repair versus buy new will depend on the cost difference. We replaced a refrigerator but fixed the one burner on the stove. No questions from Trustee.

The porches sound like a safety issue that can be justified as well as long as you don't improve them. They can be viewed as a liability due to someone getting hurt and filing a lawsuit. The basement is not a clear unless you can show some health (e.g. mold or allergies)or safety issue.

We fixed and replaced a number of household and car problems (including termite treatment) but we discussed it with our attorney to be sure the Trustees in our area would accept them. We also documented each repair.

You are allowed to live and keep your property and cars is a safe and reliable manner.