Avoiding Trouble

[KNECK DEEP]

Cut to the chase...Made major purchases ($9,000) in June anticipating a bonus in July, end up getting pink slipped in july instead and I was wondering If my wife and I payed back most of what was spent in June from her bonus would that ellivate any continions of fraud?

With me being laid off I am looking at a filing date of Aug/Sept.

Thanks

[davidb81]

The problem is if you make large payments to one creditor that is called preferential and the trustee can (and with that much money) will recover those payments and distribute them among all the creditors. Your next problem is that you incurred that debt so soon to filing that the card company will likely file an objection and you will have to pay all or some of it back. Be sure to inform your attorney about how recently you used your cards. As for fraud I dont think that would be considered fraud. One of the moderators could explain that better. HHM TODD HELP!

[HHM]

The problem is if you make large payments to one creditor that is called preferential and the trustee can (and with that much money) will recover those payments and distribute them among all the creditors. Your next problem is that you incurred that debt so soon to filing that the card company will likely file an objection and you will have to pay all or some of it back. Be sure to inform your attorney about how recently you used your cards. As for fraud I dont think that would be considered fraud. One of the moderators could explain that better. HHM TODD HELP!

That sums it up just fine.

[hhou812hh]

Since you are already out of work (sorry to hear) you should still be able to qualify for a ch7 under the new plan. You may have to be out of work for six months and take an approved credit course. At least you won't be suspected of fraud if you wait six months or more to file.
You can't qualify for a ch13 without a steady income with the current or new law. Whatever you do DON'T use any credit while you are out of work! This will look like fraud since you charged goods and services without any intentions on paying.

Good luck!