I have A LOT of old debt with DH, first off. 5 1/2 yrs old. For the last 4 1/2 years, we've been REALLY good on everything. Small balances on our accounts in good standing, paying four/five times the minimums on our accounts most months etc. I usually try to pay off my household bank card before I buy anything new. I did however do a little christmas shopping (about $400 total between everything on my card) that I had budgeted to be paid off in January, possibly Feb. after I got my tax refund back. Then we got sued for about $10K from two old creditors, within a week. Contacted a BK atty, and she said STOP paying on the cards, retain me, you don't really have much of a choice. These people will continue to sue you. (Almost $30K in debt, including a repoed truck from that time period as well.) So my question, do you think our CC's are going to object because we don't normally shop a lot at one time, and try to pay it down as well as we can before we charge anything else, and now I can't pay it as we are paying the lawyer. She said we have to list them, so it isn't effective to pay them while she is retained. We have about $1100 on a Wamu card, $900 on a Citi/Sears Card, $100 on a Home Depot card, and that $400 on HSBC. Everything else is from a lONG time ago. The HSBC one is the only one I'm really "worried" about, since I did do christmas shopping for my kids with it. TIA
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You should be OK. The code specifies over $500 for non luxury items within 90 days of filing may not be discharged.
(i) for purposes of subparagraph (A)--
(I) consumer debts owed to a single creditor and aggregating more than $500 [$500 (added by BAPCPA 10-17-05)] for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and
(II) cash advances aggregating more than $750 [$750 (added by BAPCPA 10-17-05)] that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable;
One question I'd have is, how old is all this old stuff? Is it possible to raise the Statute of Limitation defense in these lawsuits?If so, a bk filing may not be necessaet. That depends on what state you live in and, when your first went into continious default. -
Vermont has a 6 yr SOL for open accounts...we thought we weren't going to get sued. Of course there has been letters over the last few years, but no summons to court. So I thought we were "safe". lol. That's when the poop hits the fan. Anytime we get comfortable, someone makes sure we don't stay that way. Such is life.Comment
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