balance transfers with in three months

[tsk]

Can anybody tell me if they have been in this situation? My husband lost his job in Feb. We have been using my money and his unemployment to live on. We have had to use credit card checks several times to pay our credit card payments and some of our living expenses. We had no intention of filing BK but we are over our heads now. Does anybody know if you can fight having to pay off the money transfered in the presumed time frame? We had no intentions of not paying it back when we used it. And has anybody actually gone thorugh this situation?

[sunshine08]

Oh boy that is a question and a half. The courts will look at this closely to examine for fraud. You will probaly have creditors objecting to those transactions. You will also probably be responsible for those amounts you used in that time period. GO SEE AN ATTORNEY - ASAP- maybe you could do chaoter 13????

[HHM]

First, how much money are we talking about?

Second, even if the amount is in the presumption period, the credit cards and their attorneys are not looking to go to a hearing on these issues, they would rather settle (but, this may change a little under the new law). At the very least, you can negotiate a lesser amount to pay back. The balance transfers, i.e. using one credit card to pay the other, those transactions are tough, they are text book non-dischargeable debts if done within the presumption period. The portion you used for living expenses, you can probably fight on those transactions.

Or, you could just wait to file your petition until you are outside the presumption period.

[accentone]

Is the presumption period for this 60 or 90 days? After digging, I realized that I did a balance transfer of 6/22. I filed on 9/14. At 90 days, I'm around 8 days too soon to have filed.

[HHM]

The presumption period under the current, soon to be old law, is 60 days.

[debtjumper]

Uh oh...I did a balance transfer for $2000 on August 18th. I filed yesterday.

I put in for the balance transfer to obviously cut the amount of debt at 24% interest by two grand; I didn't plan on declaring bankrupcy. The card that got the $2000 payment has been closed for years. I owed like $6000 before the balance transfer.

I wonder if the trustee will raise and eyebrow for this peter-to-pay-paul transaction?

[sunshine08]

Depends on the creditor and if he catches it?

[HHM]

The trustee won't care, its the creditor from whom you transfered from that will care and possibly object to the discharge of the $2000 you transfered.

[tsk]

Past the 90 day time frame???

We have decided to wait until we are past the time frame to file. We have spoken with an attorney. Does anybody know how common it is for the trustee to go back past the 90 day time period. We used quite a bit of money over that time period. Probably about $3000.00 a month. We were expecting to pay it back when our income increased. However, we can prove the money was used for living expenses and not for luxeries.

[hhou812hh]

We have decided to wait until we are past the time frame to file. We have spoken with an attorney We used quite a bit of money over that time period.


I assume you will be filing under the new law, soon to be the current law? Sometimes they (the courts) want to see the financial condition you were in when you incurred the debts. If it was strictly living expenses (food , clothing, shelter, gas, etc.) this should be ok. If you are filing a ch13 then most of this would be paid back anyway, so it shouldn't matter. Will you qualify for a ch7 under the new law?


Does anybody know how common it is for the trustee to go back past the 90 day time period.

As HHM mentioned earlier it's usually the creditor that makes a stink over the recent charges before filing. The ch7 Trustee is just looking for any non-exempt assets you may have. The US Trustee that oversees the process usually just checks to see if you would qualify for a 13 and file a motion to force you to convert or be dismissed. The new means test now will determine this.


Just out of curiosity since some of us were wondering, but since you saw your lawyer under the old law and now will wait and file under the new law are his/her fees much higher?

Thanks in advance and good luck!

[tsk]

Yes, we do qualify for under the new law. Especially, since my husband has not worked in so long. I asked my attorney about the increase in price and they did not know, yet. I will let you all know, when I find out. Thanks for the answers.