Needhelpaz 0 Posted February 6, 2020 Report Share Posted February 6, 2020 Hi, we are about to file for chapter 7. We met with a lawyer a few days ago and we qualified for the means test. We have a little money set aside and the lawyer told us that we needed to spend it or it would be seized by the trustee. What kind of things am I allowed to spend it on? Quote Link to post Share on other sites
Clydesmom 1,268 Posted February 7, 2020 Report Share Posted February 7, 2020 Necessary expenses. Rent/mortgage, groceries, car payment, insurance etc. Quote Link to post Share on other sites
Needhelpaz 0 Posted February 7, 2020 Author Report Share Posted February 7, 2020 can I pay ahead for car insurance, internet, student loans? Quote Link to post Share on other sites
BackFromTheDebt 325 Posted February 7, 2020 Report Share Posted February 7, 2020 1 minute ago, Needhelpaz said: can I pay ahead for car insurance, internet, student loans? Some posts in the past have strongly suggested using the money to pay advance rent or mortgage, etc. You have to be careful with loans. If you just pay extra money, they will usually apply it to your principal. You need to work out arrangements so that the money you pay is earmarked so that you are paying x months in advance. One banker told me he has an arrangement with his bank so that his mortgage is paid 6 months in advance, and every check is used not for the current month but to continue being 6 months in advance. Perhaps you can work out that sort of arrangement so if you fall behind in your cash flow you will have a cushion to catch up. Good luck to you! Quote Link to post Share on other sites
despritfreya 26 Posted February 7, 2020 Report Share Posted February 7, 2020 You have not mentioned how much money is "a little money set aside". Are we talking a few hundred or several thousand? Regardless, you really need to go back to your attny and ask him/her what it should be spent on. Just remember to keep receipts. Des. Quote Link to post Share on other sites
