OK, I have a credit card that is attached to my checking account. After I gave all of the last statements to my attorney and he recorded everything, I took my bank account over what was there and the remainder was put onto this card. Basically there as $350.00 debt and now there is $650.00. Yes, I know it was stupid and I should have paid closer attention. But my question is, will this hurt the bankruptcy? Should I try to pay the difference or should I just tell my lawyer what I did? Did anyone else do this?
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Are you saying that you overdrew your bank account $300 and this overdraft was put onto a credit card that is attached to your bank account (increasing the debt on the card from 350 to 650)?
Did you already file bankruptcy or are you just about to file? (Im assuming the latter based on the fact the card was used at all, but you never know).
If you havent filed yet tell your lawyer and be prepared to explain what you did with this money. What could happen is that the creditor could cry fraud for this $300, because you knew you were going into BK when you incurred the debt. The $300 could then survive the BK and you would still owe it. This being said, if that was your only incurred debt in a while it probably wont raise many eyebrows, but defenitely tell the attorney. If the trustee asks you about it you can just explain to him it was a baning mistake or whatever.
Oh and dont pay the difference, trying to cover it up will only make it worse. They ask you specifically if youve made any payments to any creditors in the last few months, and if you lie on this it could jeopordize your whole proceeding.Not only am I not a lawyer, the California BAR association has sent me numerous letters telling me not to even THINK about going to law school. In fact, the lay advice I provide is not even good. In the end remember, you get what you pay for, and here in BK land were not the best at paying. -
Thanks for the advice. Yes, I have filed, but I have not yet had my 341 meeting. And yes, you were correct. I went over 300 and it went on my card. I happened before I filed, but after I submitted all of my most recent statements if that makes sense. Thanks again, I'll tell the lawyer and see what happens.Comment
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if you have a checking and credit card at the same financial institution, your financial institution is allowed to freeze your checking and/or pull from your checking to pay for your credit card. (called the 'right to offset') Although you went over on your checking, im assuming they will just freeze your account until you put positive money in there for them to put towards the cc debt. im really not sure tho.Don't take my word for it, I'm just sayin'Comment
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