Is this considered a luxury charge?

[twuoo]

I need to pay an (non-bk) attorney for past work. If I charge it, will that be considered a 'luxury' charge.

I really need to square things up with this attorney. Or is that a preferential payment, even though it's by cc?

[FilingOnMyOwn]

Should be ok if its under 1k. Over 1k and its gonna be a problem.

[SinkingFast]

Should be ok if its under 1k. Over 1k and its gonna be a problem.

Actually,........... New Law,............. It's $600 in the aggregate paid to any Creditors within 90 days of filing.

[FilingOnMyOwn]

Thanks sinking. I had a feeling I wasn't right there.

[twuoo]

This attorney is about the last person I'd want to put on notice of bk. Ick!

But thanks. I guess if I stop using the cc and divert the min payments, I might be able to cover the shark attorney. Or would that be a preferential payment since I stop paying the mins, but I continue to make monthly payments to the attorney?

I REALLY need to settle whatever debt there is.

[lrprn]

I guess if I stop using the cc and divert the min payments, I might be able to cover the shark attorney. Or would that be a preferential payment since I stop paying the mins, but I continue to make monthly payments to the attorney?

As SF said, if you pay the non-bk attorney more than $600 total in the 90 days previous to filing, that fits the definition of a preferential payment. You risk the trustee going to the lawyer and asking for the money back, especially if the amount you paid is over $1,000.

I REALLY need to settle whatever debt there is.

There's nothing in bk that says you can't pay back any creditor you want after your case is closed. You could sign a reaffirmation agreement to pay the lawyer when you file to keep him happy (although it's unusual to do this with an unsecured creditor, it's not unheard of), or make a private agreement that you will pay him back after your case is discharged and closed.

If you are filing with a lawyer, ask his/her advice about what's best to do in this situation. And if you aren't using a bk lawyer, make an appointment for a free consultation with one and ask this question during the consultation.

[twuoo]

I don't plan on filing until about Sept/Oct. I hope to be out of the 90 day window. Would the charge then still be scrutinized?

Thanks for all the help thus far!

[lrprn]

I don't plan on filing until about Sept/Oct. I hope to be out of the 90 day window. Would the charge then still be scrutinized?

The farther away the payments to the non-bk lawyer are from your filing, the better. How much do you have to pay him?