Anxious

[phoenix44212]

OK. I think I need help. I've finally got my divorce papers in hand. I have a bankruptcy attorney ready to file. She says I can go C7 since my I can claim my kid and I'll be below the median income for Ohio. I asked about taking out a 401k loan to buy furniture (not a stick in the apartment but two beds and dressers). She said to wait until I filed because it would be considered income. I didn't understand that. I asked to go C13, but she said I couldn't afford the payments. Ok, I can go along with that. Here's my problem. On advice of my divorce lawyer I took out a CC a while ago to see if I could maybe have it survive bk. Well between the divorce, moving and my ex not helping with any of my daughters bills I ended up using the CC for gas and groceries. I told myself I would borrow from my family pay it off and then pay them back when I could take out the 401k loan. Well, my brother lost his job so I really didn't think it was the time to ask for a loan. I don't mind reaffirming the CC but I do worry about the trustee's thoughts on this. If I did take out a loan and paid the more than $600 I owe then it's preferential. In other words I'm up the proverbial creek. Any thoughts????

[lrprn]

I don't mind reaffirming the CC...

It's highly doubtful this will be necessary. Even if you did want to do it, your lawyer would do everything possible to talk you out of it.

...but I do worry about the trustee's thoughts on this. If I did take out a loan and paid the more than $600 I owe then it's preferential. In other words I'm up the proverbial creek. Any thoughts????

A preferential payment does not involve you at all. It's between your trustee and your creditor. So there's no creek for you to be up...no worries there.

If the charges you made were for typical living expenses, then that's not so bad even if they are within 90 days of filing.

The worst that could happen is that the creditors with recent charges may object and you could end up responsible for paying just those creditors back in full. However, unless you spent a LOT of money on those cards recently, I'm betting you'll still be ok. Ask your lawyer - he/she is the best source of what's going to be a problem for you. And STOP using your cards!

[genseeker]

phoenix, Google "freecycle" and the first link should be for the main website. You should be able to find a group in your area, they have one where I grew up and it is a VERY rural area. Anyways, freecycle is where you can ask for things you need, like furniture or give away things you don't need, like clothes your kid outgrows. Everything HAS TO BE FREE and it's best if you respond to a message to tell the poster why you need it. Or make a post asking for furniture/household and tell people how you are recently divorced and need things to set up your own household. You can get very nice used items and it saves you money and saves things from the landfill. Or try a thrift store in your area, you might get lucky. Our local Salvation Army thrift store will give people vouchers for the store for clothing or give them furniture in situations like yours, especially with a kid in the house.

Depending on the age of your child, it doesn't hurt to ask for things they might enjoy, like books or whatever, so you can gve your child a Christmas with presents.