Forum Rules (Everyone Must Read!!!) (updated: 04/28/2015)

Welcome to the Bankruptcy Forum. Bankruptcy (BK) Forum is known as and will be referred to as BKF hereinafter. In order to ensure a long term success of our vibrant community, we have established certain rules and guidelines to which everyone must adhere to. Please take your time to carefully read our rules, before you start to participate in the community.

Things you agree to do: (BKF) users agree to use the search function before starting a new thread. This prevents duplicate discussions and allows for better organized topics.

All BKF users agree to read the sticky posts which may be available at the top of a forum page. These Sticky posts often contain valuable information. They may also outline more rules and guidelines specific for that particular forum, stickies are put in place by that forums moderator(s) or admin(s).

Things you agree not to do:

All BKF users agree not to call people names or write a post simply to make a personal attack, or get a negative reaction; this behavior is not allowed on our forum. The use of derogatory language aimed at anyone will be severely dealt with. There is no need to agree with each other, or to even like each other. However, by signing onto you agree to treat each member and guest with the respect they deserve. No threats or personal attacks will be allowed.

All BKF users agree not to discuss, engage, or encourage any behavior or activity which violates the law. Discussion of drugs, violence, murder, theft, vandalism, fraud or any other issue which could be used to help individuals break the law is strictly forbidden.

All BKF users agree not to "bump" old threads, unless there is a specific benefit to the community by doing so. But in most cases, please don't post in very old threads, instead start new threads.

All BKF users agree not to attempt/use another members account. It is against BKF rules to use any account other than your own. Impersonating another member will result in an immediate ban. It is also against the rules to open more than one account in your own name without permission from a moderator or administrator. If you have been banned for any reason, it is against the rules to open another account. If you were banned temporarily and you are caught using another account you will be banned permanently. Choosing a moniker which is similar in either sound or spelling as a moderator or administrator is strictly forbidden.

All BKF users agree not to private message any moderator, admin, or other member with questions related to their personal circumstances (Questions about the forum or issues with the forum are ok). This forum only works when members share their experience and insights with everyone.

Things you agree not to post:
All BKF users agree not to post any derogatory/racist/or sexist remarks. This includes attachments, links and all information contained within posts, signatures, and avatars, failure to comply with this rule will result in a permanent ban.

All BKF users agree not to post any copyrighted or trademarked information without the express written permission of the owner(s) / proper citation of source.

All BKF users agree not to post any real names, addresses, telephone numbers, email addresses, social security numbers, or any other personal details (their own or other people's).

All BKF users agree not to post links, pictures, attachments, videos, or the like of pornographic content, objectionable material or extreme violence, whether cartoon or real.

All BKF users agree not to use BKF for advertising purposes without a written contract between yourself/company/agent and the administration of BKF. Blatant advertising will result in a ban.

All BKF users agree not to spam the forums. Spam includes but is not limited to posting erroneous, non-relevant-useless, off-topic, or meaningless posts. Spam may also include posts which contain no text, or large areas of blank space between lines. Simply posting emoticons without text is considered spam. BKF is the largest bankruptcy message board and all the content is intended to help other users. Please help us improve the quality of our forum by making sure that your posts are well-worded, spell checked, grammatically correct and syntaxed.

Regarding actions of moderators and administrators:

The forum is no place to air out your opinion or be judgmental of our staff and its capabilities.

All BKF users agree not to abuse or mistreat moderators or administrators. It is against BKF rules to post any information regarding bans or any other action taken by a member of the moderating or administrative team. If you wish to discuss bans or warnings please do so via PM. To place a complaint against a moderator, send a PM to a super moderator. All Moderators are equal, any decision made by a moderator must be adhered to. If a moderator tells you something you do not like, do not go to another moderator looking for a different answer. If you are caught doing this you will be banned. The moderators work as a team and respect the decisions made by their peers and will help enforce them unless an administrator tells them differently.
If you have an issue with how the forum is run, then notify one of our administrator and we will look into the situation. We have in the past and still do appreciate any input that you offer this forum. But critical input and/or judgmental postings towards the staff will result in you getting banned.

Should you find a thread offensive or out of line, then notify a Mod in a PM so they can evaluate the situation and do the action deemed necessary.

All moderators do have active "other" lives outside of the forum and help moderate this forum in their spare time throughout the days and weeks.

If you have a problem with a member or Mod follow the proper channels of reporting it.

BKF reserves the right to delete any posts which contain anti-BKF comments or discussion. Any bashing of moderators or administrators, or any of their discussion or actions will also be deleted, and the responsible posting party(s) will be banned. Any public anti-BKF advertising, communication, or posts on another forum will result in permanent bans as well.

All warnings and bans are decided by individual moderators and administrators. Warnings are preferable to bans however, for serious offenses and repeat abusers bans will go into effect. The length of the bans can vary from several hours to permanent.

All messages posted or sent including through PM are the property of

All BKF users agree not to advertiser on the forum (Niether by posting, private messaging or using your signature). If you are a company/attorney/legal adviser wishing to advertise on the site or sell a product, you must contact the head administrator and inquire about our advertising packages.

All bankruptcy related opinions expressed on are those of their authors and not necessarily of BKF, its staff or representatives.

You agree not to copy any material/post/content from BKF without written permission from our head administrator .

By posting on this forum you agree to these terms and conditions, including any punishment deemed appropriate by moderators or administrators in the event of an offense.

Administrators/Moderators can change these rules at any time without prior notice.
See more
See less

Credit card too high to file chapter 7

  • Filter
  • Time
  • Show
Clear All
new posts

  • Credit card too high to file chapter 7

    My husband and I have just consulted out attorney. We live in NJ and are considering chapter 7. We pass the means test and have negative disposable income. We have 70k on credit cards, one of which has the majority of the debt. Our Bank of America card has a 50k balance. We've had the card for 20 years and the debt has accumulated over time. My attorney stated that he has been in this business for 35 years and has never seen a si her credit card with that high of a balance. Because if this it says it would be easier to file chapter 13. His reason for this is that Bank of America might object and if they do we would have a hard time explaining how we were ever going to be able to pay back that debt. And then if they do object, we can switch to a 13 but we wouldn't be able to get the payments as low as if we started out at a 13. We never applied for a credit line increase, we got the card in college and they just kept increasing the credit line over the years. Anyone ever experience anything like this?

  • #2
    I will be interested in hearing others' opinions on this, but my gut says talk to other attorneys. No, I have not seen anything like this in my (short-ish) time here. Wouldn't BoA still have to prove fraud? If you haven't done anything crazy with it in the past couple of years -- just your usual spending habits -- I think this would be hard for them to win.

    In all of my paperwork and consultations with attorneys, I have never seen a "cap" or limit for one card. If this guy just isn't comfortable or is trying to push you into a 13 (more profitable for them), it's time to look elsewhere.


    • #3
      How much of the $50k did you run up in the last one year? Of that amount, how much did you run up in the last 6 months? During all this time were you making at least the minimum monthly payment?

      The reality is that your creditor can file the exact same 523(a)(2) complaint in EITHER Chapter so, without knowing more I do not see an advantage to filing a Chapter 13.

      Edt to add: You said you kept increasing the credit limit. When was the last time you sought such an increase and did you, at that time, fill out or verbally discuss your income?

      Last edited by despritfreya; 05-19-2017, 06:51 AM.


      • #4
        Actually, she said that they NEVER requested a credit line increase. BoA just kept raising it.

        Reminds me me of my experience with Citibank. I requested for it to be lowered, they refused, and a couple of months later, *raised* it to $17,900. It's like they are just asking for it sometimes! Geez. I called & closed the account after that, so it just wasn't available to us any longer. Someone has to have some damn common sense.


        • #5
          I have never requested the credit line to be increased. We have never missed a payment, but my husband has now lost his overtime and we are struggling. My attorney advised me to stop paying. So this month is the first payment I've missed. We have used the card twice in the last 6 months both were cash advances for around 400 each. I took the cash to pay other bills. Trying to stay afloat. Looking over the statments the balance has been between 48-50k since 2014.


          • #6
            Angel, I'm not an attorney (^despritfreya is) but I don't see a problem here. Start making some other calls. They can answer this one question over the phone, most likely. Just give them the details you've given us here.


            • #7
              Based upon what you have just written why not try the 7? The creditor has 60 days from the date of your 341 meeting to either 1) request an extension of that date or, 2) actually file the Complaint. If a complaint is filed, you either defend since proving actual fraud is difficult or 2) attempt to negotiate a settlement for something less than what is owed.

              If you go the 7 route and the creditor sends a threatening letter stating that it believes it can file and win a non dischargeability Complaint, my recommendation is to ignore the letter. Many times such a letter is just a threat and the threat is never followed through. If the creditor is serious then it will timely file a Complaint. Do not offer a settlement when a settlement is simply not necessary until the creditor does what the law states it should do.

              If the Complaint is filed and you want to force a 5 year repayment plan then you could start in the 7 and convert. The disadvantage to this if a Complaint is filed is that converting to a 13 is not going to eliminate the adversary proceeding. You will still have to defend or settle.

              If you start out in a 13 the creditor has the same opportunity to file a Complaint. The likelihood of filing a Complaint is less depending upon the proposed payback to unsecured creditors. As we sit here today, I just don't see the need to go this route based upon what you have stated.

              I recommend that you meet with several other bk attnys in your area and explore how each would approach your situation.



              • #8
                Thank you. I will start calling around.


                • #9
                  Given that you have had this credit card for a long time, and accumulated the debt over a period of years, it is highly unlikely that the creditor would file an objection unless you have run up a significant balance within the past few months. It doesn't even matter if you exaggerated your income on the original application. That was 20 years ago, and obviously, you have been paying on this debt for years. I just don't see how the creditor could possibly prove fraud at this point, and that is what they would have to do in order to have the debt ruled non-dischargeable.


                  • #10
                    In my Ch 13, I had just over 50K on several credit cards with one major bank (not BOA) and they never filed a proof of claim on any of the accounts. Also BOA filed a POC on only one credit account (I had over 10K over several credit cards and lines of credit.
                    Filed Ch 13 Fall 2013, 60 month plan


                    Unconfigured Ad Widget