Serious Screw Up on our part

[ccidiot01]

We've done everything else by the book, but I think we screwed up on this one.

About two weeks before we filed, our 10 year old washer and dryer broke. On the day we filed, my in-laws helped us buy a new washer and dryer...not a huge issue in and of itself.

Here's the kicker, we did this with Badcock and financed part of the purchase in our names. We thought since Badcock's make local lending decisions, we could simply pay them off and go from there. Well, Badcock has now requested to be added to the matrix of creditors and to be notified of the results. We did NOT include them on our list of creditors, or list the Washer and Dryer as assets...

I have a call into our attorney, but any idea how bad this will hurt us in the eyes of the court???

[SinkingFast]

Technically you committed a BK "No No". The day you file sets the BK Estate and offically begins the BK period. You're not supposed to take on any new debt while you're in an open and active BK. So if the Trustee wants to be a BUTT, you could be in a bit of hot water here.

Hopefully, the Trustee will accept your explanation of the timeline of events, take it at face value, and realize there was no intent to defraud on your part.

[ccidiot01]

Not sure this makes things any better...I was wrong. The attorney filed us on the 8th and we purchased the washer and dryer on the 7th. (I thought we filed on the 7th...)

So can we simply reaffirm our Badcock debt since it is sort of "secured"?

[HHM]

Honestly, this is nothing to worry about. You can reaffirm if you want (you are supposed too if you want to keep the underlying asset), but I bet as long as you continue to make the payments, nothing will come of it.

[ccidiot01]

I was hoping you'd respond to this one. We have every intention on paying it and likely my father-in-law will pay it off for us soon...I just would hate for that to "gum-up-the-works" when we really meant no harm here...