Help, Need Advice

[flower04]

We are set to file next week, we have a meeting scheduled with our attorney for next THursday. 2 weeks ago, my husband's work pulled him in and told him he HAD to pay off an AMEX that was in his own personal name but was issued as a "business" card thorugh the company. Apparently the company's credit is/could be affected...so he was given 2 weeks (which is up this Friday) to pay this bill. The problem is that we don't have the money to pay the remaining portions on our cc that our attorney recommended AND to pay the Amex...we were anticipating it would be included in the 13.

So, what to do? We have family members that have come forward and woudl gift us the money, to be able to pay both...and some that are willing to purchase items that we have that we are hoping to sell on ebay. But I don't know if this is OK or not so close to filing. I'm worried about the paper trail...and the money tracing and who it would/could be traced to. I have contacted our attorney but haven't heard back yet and we are under the gun...Please give me your suggestions..we are runniong out of time!

Thanks!

[AngelinaCat]

This is a toughie. I am surprised the attorney advised still paying anything on the CCs. Usually that is the first thing to go. And if the AMEX is a big amount of money, this close to filing could be viewed by your eventual trustee as a preferrential payment, that you would have to repay the trustee down the line. Yet, it sounds like DH's job may be on the line......

All I can say is get back on the phone with the lawyer's office first thing in the morning. If you have to go there and camp in the waiting room until he/she sees you I'd do that too.

You both are in my prayers. I hope some of the C13 vets will come on soon.

My best~~~

[PoorGrammyinBK7]

Ok, this may be totally wrong, but just a thought:

Since you say you have family members willing to help --- Is it possible for them to pay off the AMEX directly (not going through you or your bank)?

I am guessing the employer does NOT know about your BK?

(Hopefully I am not suggesting anything illegal or fraudulent -- I am not a lawyer so this is just thinking out loud)

Maybe a lawyer or paralegal will jump in...

[liz417]

You would need to speak to your attorney about this one. *If* you pay the Amex bill, it could be considered a "preferential payment." Was your hubby allowed to use this card for personal stuff? Being so close to filing...I just don't know...don't do anything to jeopardize your BK. Will your hubby lose his job if he doesn't pay this card?

[AngelinaCatHub]

I have to chime in here and back AngelinaCat (DW) in that whatever he does he does NEED TO PAY THE COMPANY CARD, please. Right now the job is important. This could be explained so easy to any Trustee. It really ISN'T his card, only HIS responsibility. The card has been called by the real owner, the company. I had one of these offered with my corp and did all I could just to say I shall pay it and turn in a statement. I did not want that responsibility. He has to keep his job, that is essential. 'Hub

[PoorGrammyinBK7]

After re-reading, it looks like the DH's company does know about the BK and is concerned about the effect on the company credit.

If the card was obtained through the company, who is responsible for payment? Him or the company?

Is he just an authorized user?

If so, I am not so sure the company would be effected by the BK.

[AngelinaCatHub]

After re-reading, it looks like the DH's company does know about the BK and is concerned about the effect on the company credit.

If the card was obtained through the company, who is responsible for payment? Him or the company?

Is he just an authorized user?

If so, I am not so sure the company would be effected by the BK.

Grammy, when my company offered this deal, they owned the card, but we owned the responsibility. If we wanted a new tire on our own car, we could do it, but then we had to pay it. We then turned in a cash ticket for the company expense and paid the card. Yes it is weird, but that is the way I remember it worked. 'Hub

[BROKENN]

I had one of these for years, they gave it to me for travel etc.. and then you pay after.you get reimbursed for travel expenses.

I heard quite a few stories from ACCTG on people charged personal stuff and in the end if the employee didn't pay the company did.

I'm with grammie, I'd have family pay directly. It never came up on my credit report.

[flower04]

He has used it for mostly business but some (like 5%) personal items when traveling. He company DOES NOT know about the BK and we really don't want to tell them if ewe don't have to. The small circle of people we had hoped to only have to tell is getting bigger and bigger. My attorney has been unavailable, but the office did get back to me that she would be in tomorrow morning.

The other amounts of the CC's that we have to pay off were about 1% of the total balances...to pad us from any legal action, etc. That came from our attorney. We were hoping to file 3 months ago but I had more medical problems and it just went to back burner as we were trying to "survive"
THanks

[AngelinaCat]

Are you going to be able to add your medical problems into the BK? We did, even though insurance was still pending at the time. Our attorney put the amount of $1.00 for every medical creditors that we listed.

[flower04]

Yes, they already are. Hospital bills, dr.'s bills, etc. Our insurance has paid most of what they will be paying except for the recent bout a few months ago that kept us from filing. Ugh. I hate this. Can't wait to just file and be done, do my time and never see a credit card again. EVER!

[AngelinaCat]

Yes, they already are. Hospital bills, dr.'s bills, etc. Our insurance has paid most of what they will be paying except for the recent bout a few months ago that kept us from filing. Ugh. I hate this. Can't wait to just file and be done, do my time and never see a credit card again. EVER!

Hello Flower--**HUGGS** all around are due. Please consider yourself and DH enfolded in Arms of Love **HUGGS** again.

You WILL prevail.

[holding on]

My situation: I also had a large amount due on my corporate amex card. If i didn't pay off the card completely before filing, I would have had to include that card in my filing as a debt - that would have been grave for my job. I paid off the card (over a $1000) one day before filing. Since they were at 0 due at time of filing, I didn't have to list them as a creditor, didn't have to list them in the plan at all, and therefore anything paid to them was NOT a preferrential treatment payment.

My lawyer explained that if I had owed a $1 to amex at time of filing, and had to list amex as a creditor, then yes, it would have been a preferrential treatment. My advice is to do everything in the world not to risk your job. Hope this helps.

[PoGirl]

More than likely this is the company's credit card and your hubby is an authorized signer. This is why the company's credit would be affected. I'm guessing the card probably has his name and then the company's name underneath.

The company probably doesn't know anything about the BK at all, but does realize there is an outstanding balance and/or that a payment has not been made in 30 days. At my company, if you don't make a payment when due, it's grounds for immediate termination.

What gets complex is that you own money to your company to cover personal debts incurred on the company's credit card.

Does this card show up on your credit report? My guess is that it would not, as my company card did not show up on mine.

[NowImDownInIt]

Can I ask why your husband's company brought this to him? If they didn't know about the BK than what other reason could make them come to him and put a time frame on full repayment?