Has anyone here ever got an objection from CC's on balance transfers?

[ready2puke]

Just wondering if anyone has had that problem or has seen it in their 341 meetings from other filiers.
Different opinions from different attorneys some say wait 90 days another said wait 6 months and then another one said wait at least 9 months to a year..

[halloweendmb1]

my told me 6 months and he is a trustee, but I think you have to have made payments on the cards for 6 months? Otherwise they might want you to wait longer?

I'm curious to know if anyone has had an objection from a CC on a balance transfer?

[TooBrokeToJoke]

we're about to find out. my lawyer was awful, we told him we had balance transfers and he brushed them off like no big deal. we went to the 341 meeting and we did one in march this year, and then we stopped paying that next month cause the lawyer said too, we had no intention of filing bankruptcy, and didn't file till the end of july.

he told me that a worse case scenario is that they would make us pay the amount that was transferred. which, isn't too bad, above $5,000, but at least we'll get out from under our house, our car and another $10,000 in debt we have on other credit cards.

i'll update you if you want.

[ready2puke]

Well thats 4 months so at least you made the 90 rule

Yes please keep me posted.. Mine are biggies to pay off other cc's..one is 19k, one is 27k and other is 26k. Been playing the cc bal trans game for a couple of years now.. One is going on a year so Im not so worried about those. The other two yikes....

[Keebler]

The smartest thing I did was follow advice to stop using credit and start living on my earnings and nothing more. Obviously, I had to stop making payments to all of my unsecured creditors to be able to afford this.

Among the benefits of this approach is that it allows you to put these transactions as far behind you as you can hold out for. It also gets you used to living on your income BEFORE you file Bankruptcy. The day you file you have all the knowledge and skills you need to be successful in the future along with several months of records to back up your case.

I held out a year and tracked every expense. I learned a lot about our finances that I wouldn't have learned any other way. We were seriously messed up and things were far more difficult to change than I originally thought.

My state laws made it especially pointless for creditors to sue me so others might not be able to go so long without a lawsuit. My strategy was to file when we were good and ready or whenever a lawsuit came along. If you have the same philosophy, it'll help your situation a lot.

[ssdsco]

The smartest thing I did was follow advice to stop using credit and start living on my earnings and nothing more. Obviously, I had to stop making payments to all of my unsecured creditors to be able to afford this.

Among the benefits of this approach is that it allows you to put these transactions as far behind you as you can hold out for. It also gets you used to living on your income BEFORE you file Bankruptcy. The day you file you have all the knowledge and skills you need to be successful in the future along with several months of records to back up your case.

I held out a year and tracked every expense. I learned a lot about our finances that I wouldn't have learned any other way. We were seriously messed up and things were far more difficult to change than I originally thought.

My state laws made it especially pointless for creditors to sue me so others might not be able to go so long without a lawsuit. My strategy was to file when we were good and ready or whenever a lawsuit came along. If you have the same philosophy, it'll help your situation a lot.

Great advice !!

[halloweendmb1]

I wonder if you go 6 months and no new charges since if they will file an objection?

[paintinrosesred]

Is a balance transfer treated differently from a cash advance? I used cash advances to "consolidate debt" because it was easier that way.

Out atty said to pay for atleast six months before we stopped.

[ready2puke]

I think there considered the same. I opened these cards for the bal trans 0% interest for a year.. I do not use them to charge anything so thats not the worry. Its just that I opened one in May and I've made only two payments. Its Citi and they were kind to let me slide til Nov with no fees or added interest and no payments. They let me do this on two cards. Both are large amounts. Until a few months ago my fico was 800...my how life has changed...

[paintinrosesred]

I've heard it both ways..
"make payment for atleast six months"
OR
"wait atleast six months before you file" (while not making every payment)

Maybe someone who has had their 341 can give some advice. ??

[liz417]

Yes, I want to know to...keep us posted!

Your attorney told us to have at least 6 months behind you. Most of mine are Balance Transfers and some cash advances to pay other cards. According to my attorney, the worst case scenario, would be to pay back those charges....

[Phillymanhere]

One of the moderators may have to weigh in here, but I think I read on this board that balance transfers are similar to cash advances ....but ....

.... but this gets into the realm of preferential payment rather than fraud on your part ... In other words, the battle, if there is one, is between the company that got paid the debt and the new card co that assumed the debt. Preferential payments aren't a filer's problem. The trustee and the creditors sort this out.

Now, this would still leave the most recent creditor out of luck, right? So then that company might or might not object to your discharge. But the best thing is to put a lot of time between the transfers and filing.

[AngelinaCatHub]

One of the moderators may have to weigh in here, but I think I read on this board that balance transfers are similar to cash advances ....but ....

.... but this gets into the realm of preferential payment rather than fraud on your part ... In other words, the battle, if there is one, is between the company that got paid the debt and the new card co that assumed the debt. Preferential payments aren't a filer's problem. The trustee and the creditors sort this out.
Now, this would still leave the most recent creditor out of luck, right? So then that company might or might not object to your discharge. But the best thing is to put a lot of time between the transfers and filing.

whooaaa there. I wish that were true. I paid back a loan we used to live on from my god-daughter. It was not only called preferencial, but 'insider' payment. Now it costs me an extra 5K. Fortunatley (I guess) it will go to IRS as they set on top of all other payments and I owe them 26K.

I think from reading this no fraud was intended but to take from Peter to pay Paul and that does not work out well. 'Hub

[ready2puke]

Hub what do you mean...that does not work out well? Please explain.
Also one of my cash advances from B of A went into my checking out and where did it go? To pay off another B of A credit card..

[keepmine]

Actually, Phillyman is correct. There is a distinct difference between a preference payment and an insider transaction.
In the theme of this thread, a payment beween 2 unsecured creditors is a preference issue and the trustee will recover the money on behalf of the creditor.