@shalane85 wrote:
I plan to file chapter 13 next year around March 2011. I feel that bankruptcy is a good option for me because I have so much debt, I need to reorganize my finances, and I think I will qualify to cram down my auto loan which will save me a lot of money. What I am concerned about is my ability to save money while in a bankruptcy. Do I have to give the bankruptcy trustee everything I have in my savings and would I have to give up my income tax refund next year. I am expecting a very large refund and I would like to put it into my retirement account. I did plan to use some of it to pay down my debts but I would like to save a nice portion of it for the future. I live in Georgia and I heard that our state is stingy when it comes to exemptions. Im not even sure what will qualify for an exemption. Any advice or input would be helpful.
How about using your large tax refund to pay your debts in March 2011 rather than filing BK?
There are many possible ways to reorganize your finances - including debt snowballing, which comes in many flavors - one of which may work well for you.
In response to your tax refund question, you are allowed to keep $1,000 annually (helpful for an emergency fund) and the remainder, rightfully I might add, goes to the trustee and is dispersed to the creditors you're indebted to.
