Credit Report

[Teddy]

Does the trustee look at your credit report?

Thanks!

[HHM]

Even if they did, so what? Why do I get the distinct feeling from your posts that you are trying to hide something. "How do trustees get the house value, do they look at credit report, etc"

In any event, I suppose it is possible that some do, but I have not seen it. The trustees don't really care about your creditors, they care about your assets. Granted, BK documents are sworn documents and the 341 meeting you are put under oath, you will be asked, have you listed all your creditors? The US trustee is responsible for enforcing BK laws (i.e. they are part of the Dept. of Justice), but no, to my knowledge, they do not cross check your petition with your credit report.

[Teddy]

Hi HMM -

I'm not trying to hide anything and I'm not offended that you asked, I think I'm more afraid that if I file and it doesn't go thru, it's going to bite me in the butt.

Like my credit report shows NO late payments, all on time, etc. and I thought if they looked at that, they would say why am I filing - as people here have also told me.

I believe that I have made the budget my attorney said to make - where I spend the money we make - and it's very reasonable - nothing at all looks out of line when I listed the expenses. I mean I put down money for lunch that I don't actually spend, but if I had it to spend on lunch, I might - stuff like that. Right now we skimp on things and in my budget, it's what we could/would realistically spend if we had that money.

I had my initial consult where we went over briefly my situation, he recommended it. But then I find things and think about it and get scared about it - does that all make sense?

I think I'll call the attorney again, but I feel like I'm going to be a pain pestering him.

[HHM]

thought if they looked at that, they would say why am I filing - as people here have also told me.

Who told you that?

[sharksfan]

Like my credit report shows NO late payments, all on time, etc. and I thought if they looked at that, they would say why am I filing - as people here have also told me.

Hogwash! My credit report reflected the same on my filing date. However I do think that our situations (no negatives on our credit reports) aren't the norm...

[Teddy]

HHM - I don't know who exactly, I'd have to go thru my old threads but it's been suggested that I'm not in deep enough and that I should probably get a part time job or something.

I think someone on one thread did ask why I was filing if I was making my payments. I make them but then we skimp on other things - clothes and anything extra we need ends up on the charge card. I am tired of that endless cycle.

Sharksfan - that's good to hear and I would agree that it isn't normal to have no late's on the report. I will probably not even have lates reflected at the time I file because at that time they won't even be 30 days.

This whole thing just kind of scares me which is why I'm asking so many questions.

I did just call the attorney and he said he is not worried about them not discharging it. He said you have to qualify, which I do, and he said they pretty much have to discharge it if all qualifications are met. I'm not sure that is true. At this point, I'm hoping my attorney isn't a dud.

[HHM]

People file BK all the time when they are current on their payments (in fact, if you can do it that way, it is slightly better for your credit). Your BK is NOT going to be kicked because you were current on payments before you filed (and I will temporarily ban whatever knucklehead suggested that (j/k)

But, I suppose there is a fair question about whether you should file, but that is more a question of debt load and income.

Your attorney is correct, so long as you qualify, i.e. below median income, no disposible income, etc, you will get discharged. (aside from committing outright fraud).

[Teddy]

Thanks HHM - you've been most helpful!

I suppose the person/people who asked why I was filing were doing so to make sure I was doing the right thing. To me, my debt is high. To many people here, it isn't. My husband is on disability so he doesn't bring in much income either. If he & I ever did split (sometimes it seems that it could come to that) I would not be able to make my payments, I would have no choice other than to file. I couldn't afford groceries at all if we ever split.

I used a really nice expense calculator that someone here provided a link to and from what I've seen on everything I've read, all of my numbers are very much in line, even lower than they probably "could" be so I guess I should trust the attorney.

I didn't realize that they had to discharge it if I meet that criteria. That's why I was asking about the credit report, I figured they would see that I was making my payments on time and say that I need to keep making them (or force me to C13).

[SUB]

Your attorney is correct, so long as you qualify, i.e. below median income, no disposible income, etc, you will get discharged. (aside from committing outright fraud).

What worries me is what exactly constitutes a fraud. Seems like it's subjective, and up to a judge to decide.

I have used those handy balance transfer offers to get over the hump of my slow season. All proceeds went to pay bills, which is what they are intended for. A lawyer told me it could cause a judge to not discharge a debt regardless of what it's spent on, "if they thought is was done without a reasonable expectation of repayment".

I'd like to know what the rule of thumb is on waiting period to file post 'convenience check'.

Sorry for the hijack.

[Teddy]

I'm thinking I read something like 6 months but I can't be 100% positive on that. I thought of that too b/c I have opened new cards just to transfer balances and get a lower interest rate. I know mine have been over 6 months ago though so I remember thinking I'd be ok in that aspect.

My only charges within the past couple months have been under $50 and there were only a couple. I've been trying really hard not to use them.

[HHM]

What worries me is what exactly constitutes a fraud. Seems like it's subjective, and up to a judge to decide.

I have used those handy balance transfer offers to get over the hump of my slow season. All proceeds went to pay bills, which is what they are intended for. A lawyer told me it could cause a judge to not discharge a debt regardless of what it's spent on, "if they thought is was done without a reasonable expectation of repayment".

I'd like to know what the rule of thumb is on waiting period to file post 'convenience check'.

Sorry for the hijack.

It depends on how much we are talking about?

0-$749: no need to wait
$750+ : AT LEAST 70 days
Outside of the 70 days.
$2000-$3000, 4 months
$4000-$5000, 6 months
$5000-$7000, 9 months
$7000+ 1 year.

These rules of thumb are by no means set in stone, but are based on the dynamics of how creditor objections work. Also, it tends to be better to have a few smaller transactions that add-up to one big number, then one large transaction.

Granted, individual circumstances will vary, when it comes to convenience checks and cash advances, the "code" does not care how you spent the money. However, how you spent the money would certainly be questioned as evidence of whether you had reasonable expectation to pay it back, but how you spent the money is not an element in the cause of action.

[SUB]

I've been trying really hard not to use them.

My plan is, no more transfers, with minimal use, make the payments right up till I file towards the end of the year.

I too have excellent credit, never been late.

[SUB]

Thanks for that.

From that list it looks like I should file between Sep-Dec, which is the plan.

how you spent the money would certainly be questioned as evidence of whether you had reasonable expectation to pay it back,.....

How so. Seems like one could always claim to have intended to make repayment.
Seems like past income vs. past balances would be a better indicator of intent.
In my case both have been MUCH higher.

[JeepMom]

We filed/discharged with NO late payments at all. It's being pre-emptive to missing payments.

[Teddy]

I think I'm worrying myself for nothing. I am not commiting any fraud, that doesn't worry me at all. My list of expenses is very reasonable and I could actually make it look negative if I put higher numbers in which I probably could do with no problem.

Our family is different - we have me, husband, his 21 year old son all living at my house full time. My son comes over 2-3x a week, I claim him on taxes so I think I should put him down as a family member. That would entitle us to 4 people. My numbers are probably even low for a 3 person house. I wasn't sure about claiming the 21 year old since he files his own taxes. He has lived there for 1 year and I am finally going to ask him for $100/month.

I just worry too much probably.