Cash advance question

[foolishman]

I am looking to file with $138K unsecured debt.

I took out a $6000 cash advance in December.

1. Should I wait 6 mos to file, or could they still object?
2. Could my case get thrown out or just that debt if they object, while considering I did it after meeting with attorney.
3. If I file before 6 mos, and they object, will they contact the trustee or my attorney for a settlement?
4. If they consider this transaction fraudelent (since I met with my attorney), will they deny my discharge?
5. Does it matter how much debt I have, or will they want statements of everything I spent my credit on?

[HHM]

1. It is probably a good idea to wait six months. (the technical rule on cash advances is any amount over $750 taken out within 70 days of filing BK is "presumed" to be fraudulent). However, given the large amount, I'd suspect the creditor would file an objection, but the creditor would have to prove that cash advance is fraudulent...which means they would have to prove that you took the cash advance and had no reasonable belief that you could pay it back.

2. No, all that would happen, if the creditor was successful, is you could not discharge that particular debt and would have to pay it back.

3. Probably. Most creditors would rather settle using a reaffirmation agreement than actually file an Objection to Discharge.

4. No, they will only consider that particular debt as nondischargeable.

5. Yes and no, given that your debt is over $100K, your case will be more closely scrutinized than a regular case, but that doesn't necessarily mean your case will be tossed out. But there are several factors to consider...(1) what was the cause for incurring such debt (i.e. job loss, business failure, medical etc), (2) what were most of the charges for, (3) how long did it take you to accumulate the debt, and so on.

[jbr12]

I just had to take out a cash advance loan (small one - $200). I am supposed to pay it back next week, but they give me the option of paying a chunk then refinancing it with a different due date. Am I better off paying back the cash advance loan before filing? One of the questions they asked when I applied was if I was planning on filing or if I had filed bk in the last/next 6 months. I answered no to that, even thought I was already considering filing... Is it in my best interest to just pay this off prior to filing?

[HHM]

I just had to take out a cash advance loan (small one - $200). I am supposed to pay it back next week, but they give me the option of paying a chunk then refinancing it with a different due date. Am I better off paying back the cash advance loan before filing? One of the questions they asked when I applied was if I was planning on filing or if I had filed bk in the last/next 6 months. I answered no to that, even thought I was already considering filing... Is it in my best interest to just pay this off prior to filing?

Don't get caught in these cash advance/pay-day loan traps. Pay back the debt, in full, next week; and stop going to those places. Especially if you are considering BK, the first thing you need to do is figure out how to live within your means.

[jbr12]

I didn't come here to get financial counseling. This was a one time thing and had to be done. My second employer was unable to pay me on time, forcing me to either use a cash advance loan or bounce mandatory purchases such as my auto insurance and rent. My budget is VERY tight and without getting paid on time I had no choice

[bige1030]

If you pay off the small cash advance loan, you don't have to list it on your bankruptcy. Pay it off if you can - one less creditor and one less issue to deal with in the case!