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Financial Aid Refund Check & Used Car

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    Financial Aid Refund Check & Used Car

    Hello!
    My husband and I anticipate filing for BK at the end of April. We recently received our tax refund check for arround 8k and need it to purchase a car and for moving expenses to relocate to a more affordable apartment. Once we are settled we will file. We do not own a home, looking to purchase a reliable car for no more than 4k, we have 2 children and make around 30k a year. We do not have any property. We only have clothing, cheap furniture and the car we anticpate getting as well as car insurance.

    I am enrolled in college and receive financial aid refund checks. My refund checks are a little under 2k each and I get them every quarter. The financial aid I receive is strictly government based grants, no loans. I use my refund checks within the financial aid guidelines. If i receive my refund close to or after the ch 7 filing will I need to forfeit it ?

    Also in my state (washington) The car exemption is 2500 andn 5000 for two cars if married. If I get a car for 4k, can I use the two car exemption for married couples towards one car (instead of two for 2500, one under 5000)?

    Thank you so much for all of your advice.

    #2
    Use the federal exemptions in Washington state and you can exempt all your financial aid and leftover income tax money with the unused portion of the Federal homestead exemption - up to ~$10,825 and it is doubled for husband and wife filing together.

    The car exemption is $3450 for federal and is also doubled for husband and wife filing together.

    I wish you good luck - there is lots of good advice to be had here!!
    ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
    Not an attorney - just an opinionated woman.

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      #3
      Thank you so much! I am so relieved that we can get a car and keep my financial aid. The income tax return will be spent by the time we file but I will keep receipts.

      I thought you could only use the federal exemption if you were not a resident of that state. I am so relieved because the exemptions in washington state are pretty minimal. Thank you for clarifying that for me!

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        #4
        We are lucky - they let us choose!!!
        ~~ Filed Over Median Income Chapter 7: 12/17/2010 ~~ 341 Held: 1/12/2011 ~~ Discharged: 03/16/2011 ~~
        Not an attorney - just an opinionated woman.

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          #5
          I definately agree! Best news Ive received all week!

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            #6
            Thank You!

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              #7
              You probably will save money by being able to go to cheaper places and buying your groceries in bulk (which is hard to do in a cab or bus) so I think a car would be a good investment.
              [Advertising links removed by Moderator. Please see Forum rules.]

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                #8
                Exactly! Currently relying on friends and family to go to places like Costco and Walmart and It's not a walk in the park!

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