Going to File Ch.7 and FREAKING OUT.

[Pinkie86]

Hi all. I'm a newbie, I'm young, and I need some advice. I've been worried to the point of stomachaches all weekend long. I have a question about the 70/90 Rule.

I hired a lawyer on Friday for Bankruptcy after I received a call from a Debt Collector threating to sue me. When my lawyer asked me if I had used my cards in the last month, I said no, and then I had an UH-OH moment this afternoon.

I've been doing some reading and some research here and found Section 523A of the Bankruptcy code. Which made me even more scared about the creditors objecting to my discharge:

1. $500 owing to a single creditor for the purchase of "luxury" goods within 90 days prior to filing BK.
2. $750 owing to a single creditor for a cash advance (i.e. balance transfers are cash advances) obtained within 70 days prior to filing Bankruptcy.

- May 21 - I used my Citi Card to buy groceries and gas, so it's been a month since I used it. I used perhaps a little over $100 on the card to get food and fill my tank.

- In the last 70 Days I did balance transfers to my Citi Flex Line from my American Express. In the last 70 days, I've only transfered $499. This was under the $750 in a balance transfer or in Bankruptcy terms, a "cash advance."

- And then there is my Victoria's Secret Charge that I used for Father's day gifts, which was $63.56.

But truth be told, bankruptcy wasn't even a thought in my head until last Friday when I got the call and immediately hired a good lawyer.

I'm marrying my HS Sweetheart on October 24. The date is set, deposits on everything has been set, so I can't move it.

[keepmine]

No biggie-just disclose this info to your lawyer.
I suspect it'll make no difference. The amounts aren't enough to raise any eyebrows among creditors.

[MajorMike]

Exactly what keepmine said.

[PaKettle]

These are relatively small amounts, not enough for it to be worth their while to object.
Don't worry, but discuss these with your attorney. He's on your side, so run it by him and ask him. He knows what the standard operating procedure is in YOUR DISTRICT and that's what counts, so ask him.

[Help!]

Nothing to freak out about. You haven't filed yet, so I agree w/ everyone else... just talk to your attorney. I should also say I've started many "FREAKING OUT" threads myself and nothing was ever as bad as I first thought. It is much easier to be rattled when things come up out of nowhere and surprise you. If you read these threads and learn about the various steps of the process, you will have an idea of what may or may not happen next in your case. Knowing what to expect takes away that element of fear.

Good luck!

[JRScott]

You'll be okay.

Just tell your lawyer, it might delay filing a month or so but it'll get done. Nothing major there and they aren't going to challenge groceries and/or gas. They generally challenge big ticket items like big screen tvs, huge balance transfers etc.

[Pinkie86]

Thank you SO much. I feel like I can breathe now. You all have been my saving grace this weekend.

[AngelinaCat]

Good luck to you Pinkie86. I agree with the others; I think you will be fine. I just hope and pray your lawyer is TRULY a good one, and one that you can talk to.

Best wishes on your upcoming marriage!

[sisterfunkhaus]

I can't see that any of this would be a problem.

[Pinkie86]

Ok got some more questions for you guys. I contacted my Lawyer's paralegal this afternoon, and I found out as you all predicted, I'm ok with those charges I made.

I now have a couple more questions, and it's after business hours.

I am DEFINITELY below Median for my state for a two people household, and my lawyer said that I'm not going to lose anything, and that this should be a easy case.

BUT...

What I've been worrying about now is:

-Will they try to take wedding gifts from me?, and
-Would they take my remaining student loan money check from me in September?

Am I safe because I'm WAY below median? Or should I not get comfy just yet?

[Phillymanhere]

I don't think the trustee is interested in your wedding gifts, though this may depend on how valuable they are. But what are the exemptions in your state?

By law, I think, student loan money can only be used for school. Room and board is considered part of school. They can't "take that away" from you. What does your attorney's office say about these two things?

[Flamingo]

Ok got some more questions for you guys. I contacted my Lawyer's paralegal this afternoon, and I found out as you all predicted, I'm ok with those charges I made.

I now have a couple more questions, and it's after business hours.

I am DEFINITELY below Median for my state for a two people household, and my lawyer said that I'm not going to lose anything, and that this should be a easy case.

BUT...

What I've been worrying about now is:

-Will they try to take wedding gifts from me?, and
-Would they take my remaining student loan money check from me in September?

Am I safe because I'm WAY below median? Or should I not get comfy just yet?

As to your last two questions, advise your attorney of your concern as to the wedding gifts and you will probably have to prove you pay that money to your school for your fall semester and are not going to pocket it. Also check with the attorney on that.

[Pinkie86]

Well my lawyer didn't really explain my state's exemptions to me, and so far in my research I can't find a definitive answer on them either.

When he asked about my personal items such as furniture, appliances, etc etc, He said, would you say around $3,000? I said at yard sale value, that was a fair guess. And he did say at the end of my consultation that I wouldn't lose anything. So I'm guessing I'm ok. This is all just so new and I'm a huge worrywort anyway.

I haven't registered for anything particularly valuable. Just household items; appliances, towels, dishes, etc. I did hear back from the paralegal and she said I should be ok with wedding gifts. *PHEW!*

She said that depending on my student loan refund check was mailed, the trustee may or may not be interested. I'm looking at filing end of July early August; that's when I'll have all my legal fees paid.

My head is spinning. I think when I actually sign the papers I'll start feeling better.

[JRScott]

You'll feel better once you've filed , its stressful up til then