$65,000 Bank of America Gold Option Loans

[RokitPowered]

Greetings-

I'm sorry for the long first time post.

I have been reading this forum for the past month abnd have learned a lot.

I would like to explain my situation and would appreciate any and all replies.
As you can imagine, I'm a bit stressed out and losing sleep over this mess I got myself into to................................................ .............................

May 2006 - purchased our home and it went backwards in value and we just had it foreclosed on and it sold at a trustees sale in April 2008. The 2nd mortage is still calling everyday to pay them $120,000. It was a HELOC.

August 2006 - I started my own company. I only made $5,000 in 1/2 years with it. I kept trying to make it work and kept thinking "tomorrow is the big deal" There were no "big deals"

March 2007 - $25,000 Bank of America Gold Option Loan deposited into personal checking account that paid off 3 other credit cards. (consolidate)

June 2007 - Another $25,000 Bank of America Gold Option Loan deposited into personal checking account that was used for upgrading the house and used to live off, while I was trying to get my business started.

Sept 2007 - Another $15,000 Bank of America Gold Option Loan (under my wifes name) depostied into our personal checking account for my wife to
get her real estate license and pay for marketing expenses and to maintain the $3,000 mortgage payment. My wife has yet to use her real estate license, with the market the way it is.

My wife is currently employed with the same company (not real estate) for 5 years. She makes $34,000 a year.

I realized my company was not paying the bills so 5 months ago I went and got a job that was paying $2500 per month take home....but was recently laid off. I am now looking for another job, and still hoping to keep my business going (it's a graphic design / audio production company)

We have NEVER been late on the 3 Bank of America Loans. Obvisouly, it's going to get to the point where I can't afford them. My main question / concern is: All of our debt is with Bank of America. It's all "cash advances" into our personl checking account. We have always paid on time, but I feel like we have been using their money to pay them. Is this going to raise a red flag if we want to file Chapter 7?

Sorry for the long post.

Thanks for any help!!!!

[lrprn]

My main question / concern is: All of our debt is with Bank of America. It's all "cash advances" into our personl checking account. We have always paid on time, but I feel like we have been using their money to pay them. Is this going to raise a red flag if we want to file Chapter 7?

Your cash advances are big ones for sure. Is Sept 2007 the last cash advance of any kind that you made? How about your credit cards? Any cash advances or big charges there the last three months?

[RokitPowered]

No other cash advances. Well actually, I did have a Bank of America credit card with a $6,000 cash advance in Jan. 2008, that I recently paid off in full.
The money was just sitting in another bank account for a "safety reserve" and we never used it, so I just paid it back last week. Is this a preference? It's all B of A.

I did buy a $1,000 laptop in Feb. 2008 with Best Buy Card that I just
paid off in full last week.

I will try to wait another 90 days to file.

Any thoughts?

I am really worried about the only creditor in the Chapter 7 will be Bank of America (all cash advances). (Well, Citi on the 2nd mortgage too)

[TEW]

Have you made some payments on those cash advances? Made and attempt to repay them?
Is it only you and your wife or are there more people living in the household?
How much is in the checking account?

Have you talked to an attorney yet ?

[RokitPowered]

Yes, we've made all the payments on time always. No lates. We are current now.

It's me, my wife, and a 6 month daughter.

The checking account with Bank of America (that I just paid back the $6,000 is $0. My other checking, that we use for our bills etc..is $6,000 (from my wifes tax refund)...That's what we are going to use for bills and living expenses.

Yes, I've met with 3 lawyers. They all seem willing to accept my money (case).

I can only have $300 in the checking account before I can file.

[MomIcantFindmy]

Ask your attorney how much you can have in the checking account at time of filing. As close to 0 is the best bet. Also, you will need to change your checking account to another institution prior to filing if you are filing on BoA you do not want to have your checking account there.

[Help!]

We took out similar B of A loans trying to consolidate debt, having the cash deposited directly into our checking account. One was $45K in my name (April 2007) and another $45K in my husband's name (August 2007). We filed in April and have not heard a peep from B of A. The deadline for creditor objections in our case is next Monday, so I think if they were going to object they would have by now. If my case is any indication, I think you'll be okay with B of A.

If I were you I would close any B of A deposit accounts (savings, checking, etc.) and open up new ones at another bank. Your debit/ATM cards will likely be deactivated, you will lose online banking access and they may also freeze your accounts.

If it makes you feel any better, we also took out a HELOC before getting to this point. We bought a house that was more than we could comfortably afford and being short every month is what slowly buried us. There are so (!) many people in exactly this situation so you are definitely not alone. Try not to lose sleep (I know how hard it is) and to take care of yourself.

[RokitPowered]

Thanks for the replies. This forum is really great. I have learned alot and have gained a ton of new info.

HELP! ....Thanks for your words. That really does make me fill a little bit better knowing that you have a similar situation with B of A.

[Help!]

I thought about what I would do if B of A objected to our discharge. When they extended those ridiculous amounts of unsecured credit to us they looked at our credit reports, saw the tremendous debt we were already in, saw our inadequate income (I even told them I was unemployed)... and then loaned us (as a couple) $90K?! What did they think was going to happen? Good grief!

I accept full responsibility for making my bad choices, and I look at my BK as B of A accepting full responsibility for theirs!

[hnhlvr]

I thought about what I would do if B of A objected to our discharge. When they extended those ridiculous amounts of unsecured credit to us they looked at our credit reports, saw the tremendous debt we were already in, saw our inadequate income (I even told them I was unemployed)... and then loaned us (as a couple) $90K?! What did they think was going to happen? Good grief!

I accept full responsibility for making my bad choices, and I look at my BK as B of A accepting full responsibility for theirs!

Yep, it's amazing how they send out the balance transfer checks like candy and expect us not to take the bait unless we have self control. Then they come after us for taking advantage of their solicitations, which most of us do.

I'm so sick of credit cards and it's incredibly frustrating that the only way to repair bad credit after BK is getting NEW/MORE cards.