I have decided to file for ch7 discharge (in california). i have recent activity on all four credit cards that i will be requesting discharge from. the activity exceeds the typical $1050 cut off, and includes both purchases and balance tranfers to lower rate cards. i am definitely waiting 6 months to file, as recommended to me by several BK attorneys. i will be making "good faith" payments on all four cards, as well. my question is...how long should i continue making these good faith payments on all cards for??? one attorney suggested making minimum payments the entire 6 months, and another said to make the minimum payments for 2-3 months only, and go delinquent the rest of the time before filing. so, which is it... 2 months or 6 months of making good faith payments? what do you think is "required" by the trustee and credit card companies for a full discharge? i hesitate making 6 months of payments because i have no money. but i hesitate only making 2 months of payments because i want to make sure i am 100% discharged, and don't want to risk it. thank you in advance for your help!
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If your financial situation dictates so, you might as well stop making payments now..........and just file BK 6 to 9 months later. The point is, you might as well put the money were it is needed most, your pocket!Originally posted by alicia
As long as you file 6 to 9 months from the date of your last purchase all your credit card debts will be discharged. Unless you have tons of assets all your debts will be discharged in your Chp 7 filing.
Good Luck!
The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation. -
thanks for the response
thank you for the speedy responseComment
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Anytime. I can recommend an excellent book about life after BK if you're interested.Originally posted by alicia
Good Luck!
The information provided is not, and should not be considered legal advice. All information provided is only informational and should be verified by a law practioner whenever possible. When confronted with legal issues contact an experienced attorney in your state who specializes in the area of law most directly called into question by your particular situation.Comment
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book
What book do you recommend?Comment
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I'm interested in the title of the book also and good luck to you Alicia. Those new laws sound scary, but at least you know far enough in advance that you can prepare to deal with them. My decision was kind of a last minute thing when I finally realized it was about the only choice I had that made much sense and with the new laws looming I figured I better not delay. At least taking this route is much safer, not like a former coworker sitting behind bars who was also laid off and got arrested for attempted bank robbery.
If you do make payments, be careful not to let them get to big 90 days prior to filing or the trustee will question you on it like mine did at my 341 today. It will have to be disclosed in the statement of financial affairs. I was making my minimums plus a couple dollars extra to each account, but 2 of the 4 those minimums were above the amount where they look into it as possible preferential payments. Thankfully the trustee said for those amounts he isn't going to worry about it and let it slide.Comment
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Are you talking about 6 months from now? If yes, you will have to do it under the new law. You probably still can qualify depending on your income.Comment
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I am in the process of completing my BK paperwork and have paid over half to the attorney. I have contemplated this over 3 years and it has finally come down to it.
I am very scared! Not about being able to purchase anything in the future, but afraid of what lies ahead in the next few weeks. I will pay the remaining balance this week and turn in all the paperwork. Then another meeting with the attorney, then what?
I am so scared!
If there is someone out there who has "any" advice for me to sleep over the next few weeks, by "all" means, please post them.
Unique1172Comment
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Unique, believe or not, there is light at the end..You WILL be able to buy stuff in the future, interest rate will be higher, but as long as your down payment is good, they'll have no qualms.Originally posted by unique1172
My attorney (From 10 years ago) told me "I know you want to pay your bills, you know this too. But the Credit companies deal with people like you everyday and while they WANT you to pay your bills, they also know there's a limit to what people can do and while they may push, you don't have to suffer needlessly. Leave them to worry about themselves, take it one day at a time and remember, this is just a "Bump in the road" and it does get better"
Hope this helps and have a nice weekend!Comment
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Do the best that you can and start working on a budget and savings plan, but stick to it. Estimate expenses high and income low. Take it from the ones that have been there.
(kinda like a recovering alcoholic i guess, supposedly they are the best ones to turn to or to recognize the signs and help you most)
Good luck, it does get better, it just takes a little longer. But it is actually nice to save your money and pay cash for it, especially if it is a luxury item
I'll be watching, you may never know when or how, but I'll be there. I am there now....
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Hello, Todd!
Please tell me, why do say "6 months after your last purchase" on CC? I thought it was 4 months, not 6 months. Is this something resulting from the new law?
Best,
Albert L.Comment
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Originally posted by alberto2005
Obviously I'm not Todd, but I think the answer is that despite popular belief there really is no "magic" window of 60 days, 90 days, 4 months, etc. Under current law the court presumes you intentionally charged your card before just before filing inside 60 days and may demand you pay back what you charged. Outside the 60 days the burden of proof falls on the cc company. They have to prove you charged up a storm with no intention of paying and the greater the distance between purchases/cash advances the more difficult time they will have proving you charged with no intention of paying. Six months is usually very difficult for them to prove unless you did a balance transfer or cash advance for 10k or more then you would need a year or more(at least that's what my atty said).Comment
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I am not sure I understand this.. is there a "typical amount" that's OK to charge right before you file?Originally posted by alicia
The reason I am asking is, my mom's car had illegally bald tires on it, my grandma died and the service was on Aug. 5th. Mom had to rent a car for $65 so she could get to the service, and then 3 days later, she bought 2 new tires for her car for $145. We are concerned that they will bring this up at her 341 meeting (tomorrow!)
She is prepared to pay the $210 if she has to, but obviously would rather not as it would take her several months to do so. But since it's such a small amount, will it even be a problem?
The charges were on a card she hasn't used in years, she used it because it's the only one with credit on it. The other card is pretty much maxed out, and she used it monthly to the tune of about $350 to pay her living expenses. (after she paid the $475 - $500 a month in cc bills, she didn't have enough to live on).
I know it's late for this question, we just thought we would deal with what ever came her way. But it would be nice to not have to worry about it now.Comment
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Originally posted by Whittio
Tires should be ok. She didn't run to Tiffiny's or the Fur Vault to get some new goods, so she should be ok. I doubt they will question it even if they see it.
Good luck!Comment
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Thanks! That's what I told mom, but she still had to find something to worry about, which led me to worrying. :s
She was supposed to leave at 7am this morning for her 10am 341 meeting. She doesn't know where she's going, so wanted to leave plenty of time to get there. She has to go into Downtown Sacramento and with morning traffic.. ya never know what's gonna happen.
I'll be biting my finger nails until she gets home. I expect to hear from her by noon today! I can't WAIT!!!Comment
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