topic Re: What can you do before chapter 7? in Bankruptcy

What can you do before chapter 7?

user365735 — Tue, 21 Jun 2022 23:53:50 GMT

I have a little cash I have left over from a 401k withdrawal 1.5 years ago. If I knew better I would of just filed back then! I figured I could overcome this and the loan would hold me over....

I'm a single guy, no family filing chapter 7 and under median. Im not talking about luxury purchases, vacations, fancy dinners...but am i expected to sit home during all this? We(lawyer have not filed yet). I useally spend maybe $70 every weekend going out with friends. I like to go to the Korean spa, $35....

I'm not going shopping, etc. But is this spending okay or should I be staying home? I'm going to go insane If this is the case.

Re: What can you do before chapter 7?

incognitony — Wed, 22 Jun 2022 00:30:06 GMT

Here's hoping for a happy ending to your financial woes.

Re: What can you do before chapter 7?

CH-7-Mission-Accomplished — Wed, 22 Jun 2022 00:52:00 GMT

@user365735 wrote:
I have a little cash I have left over from a 401k withdrawal 1.5 years ago. If I knew better I would of just filed back then! I figured I could overcome this and the loan would hold me over....

I'm a single guy, no family filing chapter 7 and under median. Im not talking about luxury purchases, vacations, fancy dinners...but am i expected to sit home during all this? We(lawyer have not filed yet). I useally spend maybe $70 every weekend going out with friends. I like to go to the Korean spa, $35....
I'm not going shopping, etc. But is this spending okay or should I be staying home? I'm going to go insane If this is the case.

The types of things you are talking about are not going to be a problem. I'm not sure how much money you have left from that 401K withdrawal, and I'm not an accountant or tax lawyer, but generally retirement accounts are exempt from bankruptcy asset limits/test. If you took out that money as a loan, and you have say more than a few thousand $$$ left, you might be able to put the money back into your 401K and protect it. Ask your lawyer and your accountant. Otherwise enjoy the spa treatment.

Re: What can you do before chapter 7?

user365735 — Wed, 22 Jun 2022 01:05:28 GMT

Well,.once you take out a 401k loan from my understanding is it is now considered cash and it's an asset. In reality the remaining savings are going towards the lawyer and taxes. I did quickly discuss this with the lawyer but we didn't discuss any spending besides his fees and taxes..

Re: What can you do before chapter 7?

Pway — Wed, 06 Jul 2022 18:22:17 GMT

I would definitely discuss with your bk attorney.

Re: What can you do before chapter 7?

Anonymous — Wed, 06 Jul 2022 18:59:41 GMT

I concur with @Pway . The good news is once you complete this chapter 7 bankruptcy, you will be free from these crushing debts. Nothing but clear skies ahead.