Local Sign Loans

[Flaminblonde]

I have a question. I opened a couple of new loans (100,200,200 respectively) and renewed some old loans that I had due to financial hardship.

I opened these up on May 30th. But unfortunately I haven't been able to make even the first payment on these new loans on June 30th. Do I not include these loans and try to pay on them since they are new? Or would be adding these to my bankruptcy be considered fradulant since I just opened them and didn't make a payment? I have an appt with a lawyer on July 18th.

Any help would be appreciated!

[Minnymouth]

You did not state whether you had already filed BK or just planning too??

Have you filed, and waiting on 341 meeting? Or is 341 meeting over??

Minny

[Flaminblonde]

I am in Texas, and I am going to file. I meet with my attorney on the 18th of July to get the paperwork together. I am assuming filing should be about 2 weeks from then

[Minnymouth]

Shame it hasn't been 90 days or longer since you took out the loans. Trustee could consider it fraudulent spending (even in hardship) and it could cause him to dig real deep into everything you submit in your BK.
Its like waving a "red flag" in the Trustee's face.

You need to list them on the BK and then explain to the Trustee WHY...they exist.

You lawyer can help you with this.

Good Luck

[HHM]

List those loans on your BK. If you can hold out 60 days, you should be ok, (use of credit within sixty days of filing is "presumed" fraudulent, after 60 days, the creditors have to "prove" actual fraud). (Note, the new BK law extends the look back period, and that provision may have already taken effect, but I do not recall for certain, the "presumption period" as it is known, may be 70 days now).

Worst case scenario is that you have to pay those particular loans back. However, make it the creditors choice to pursue them, so list them in your BK and make your creditor file an objection to discharge, (or offer some sort of reaffirmation etc etc).

[Flaminblonde]

Thank you so much for the help! Nervous here and I don't know what exactly to do.

Just hoping that all will go ok.

[Flaminblonde]

One more question,actually two, would it be wise to make an attempt to make at least one payment on these accounts? Also, does renewal of loans consider a new loan and void the 60 days?