Had to use cash advance

[esedlo]

I am going to be filing ch. 7 soon and I currently have no income at all. My bills were past due and I haven't been able to find a job so I took the maximum cash available on my credit card. I know that's not good to do but it was the only way for me to pay my bills and there's no telling when I'll find work. What will happen? How will that affect my BK case?

[Flamingo]

The problem is that you took the cash advance knowing that you will be filing and will not be paying it back. Could present an issue. Have you consulted with an attorney yet as to filing? If so, I suggest you discuss things further with him/her before you take out any more advances. Best of luck to you.

[Bandit]

well, not trying to tell you what to do, but I would not be wording it exactly like that
borrowing money with no job to pay it back, & planning a BK case is, well, I just would not do that again. what will happen? your guess is as good as anoyone elses at this point.


how much does max mean?

if it is more than 750 then plan on waiting for a 90 days, though generally they are looking for thousands. more than 3000? then you might want to wait about 6 months & make the minimum payment.

You might want to see a few attorneys right away or at least talk to a few on the phone. That or start getting the law under your belt so you know what to do & not make any mistakes.

Look at the FAQ section, that will help get you in the right direction.

[esedlo]

Thanks. I knew it wasn't adviseable but did it out of necessity. My kids have to eat and their dad isn't paying and is tens of ks in arrears. Most all of my debts are due to his misuse of money (drug addiction -- lots of overdrawing over the course of many years) and if he were paying even half of what he's supposed to I'd be able to pay my bills even w/o having a job. Anyway, it was 1650.00. I figured the worst thing that could happen would be the credit card co. would think I did it w/o planning to pay it back but if they disputed it and won I'd end up having to disclude that amount from my exemptions and set up a payment plan. They wouldn't be able to dispute the charges from a long time ago (at least that's what I was told). I can't take advances anyhow because I took the full amount of my available cash. Maybe I should just make one more minimum payment. I did ask a lawyer about taking the cash (though then I was planning to use it to retain him) and he said it wouldn't be a great idea. Sooooo . . . Anyone else ever done that? A guy I know just filed bk and said his lawyer told him to go max out all his credit cards! I told him he's CRAZY!!!!

[Bandit]

Thanks. I knew it wasn't adviseable but did it out of necessity. My kids have to eat and their dad isn't paying and is tens of ks in arrears.

then just keep your reciepts so you can show exactly what you did with it.

A guy I know just filed bk and said his lawyer told him to go max out all his credit cards! I told him he's CRAZY!!!!

it depends. maxing out the cards? does not sound like a wise attorney.

buying some school clothes & tuition, getting medical attention if needed, groceries...a good attorney will tell you to get the things you need & then to come back.

It is a very serious law & it will take us down to zero if we like it or not, but also knows that people need certain things to survive.

Have you looked at your areas exemptions yet?

[esedlo]

No, I haven't looked at exemptions yet. I'm really just learning about all this and have a long way to go. If you use your CC for purchases don't you have to wait 6 mo. to file? I need to file right away. The lawyer I spoke w/told me that from the day I file to the day it's final it would be 3 mo. Then I can start trying to move on w/my life.

[keepmine]

No, I haven't looked at exemptions yet. I'm really just learning about all this and have a long way to go. If you use your CC for purchases don't you have to wait 6 mo. to file? I need to file right away. The lawyer I spoke w/told me that from the day I file to the day it's final it would be 3 mo. Then I can start trying to move on w/my life.

I'd not file until, you have a job and your finances are stable.

[MajorMike]

I agree! I charged on my Amex card 3 mos prior to my filing and now they are getting $5,000 after my filing is discharged meaning...I have to pay them back. They sued.
So, if I were you, I would get a job ( even part time ) and then file. I'm sure you'd qualify for a 7 based on what you've posted here.

[Cali]

I agree with the others that said to get a job first and then go from there.

[Summerbreeze]

I agree! I charged on my Amex card 3 mos prior to my filing and now they are getting $5,000 after my filing is discharged meaning...I have to pay them back. They sued.
So, if I were you, I would get a job ( even part time ) and then file. I'm sure you'd qualify for a 7 based on what you've posted here.

Why do you have to pay them back? Was it a luxury item or a cash advance?

[Cali]

Probably because it was 5k 3 months before he filed. They probably thought he knew he was going to file, but still took the cash advance.

Why do you have to pay them back? Was it a luxury item or a cash advance?

[js1980]

I am going to be filing ch. 7 soon and I currently have no income at all. My bills were past due and I haven't been able to find a job so I took the maximum cash available on my credit card. I know that's not good to do but it was the only way for me to pay my bills and there's no telling when I'll find work. What will happen? How will that affect my BK case?

I wouldn't worry about it too much. Just tell your attorney the truth. Generally, the worst thing that can happen is the creditor objects to that amount being dischagred and you may end up having to pay only the amount charged within 90 days. Since all your other bills will be gone, it should be easy once you find that new job! Worst case: They garnish your earnings. Since you're sick and have no job, well, they won't get much.

Waiting might not be an option. There isn't this magical 90 day window. If the personwho objects can show that you abused the system, by, say, paying a BK attorney some money within 90 days of the debt, that can be grounds for abuse. If they find this post and manage to link it to you, it would clearly show that you made the decision to file chapter 7 close to when you took out the cash advance.