Sign in to follow this  
Needhelpaz

question about spend down

Recommended Posts

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? 

Share this post


Link to post
Share on other sites
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!

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Sign in to follow this