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Chapter 7 Advice

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    Chapter 7 Advice

    I've been doing a lot of reading an research (this fourm is great). Anyway, I think I've decided on a BK attorney. The fee for a Chapter 7 is $1,300 (including filing fees), and he allows you to pay what you can when you can (the case is filed when you make final payment). Also, he allows you to forward creditor phone calls after your initial payment. He's been in the business a long time and he used to be a trustee. All good, right? I will meet him on Thursday and likely retain him, unless anyone has good objections (the whole thing makes me nervous).

    I just want to make sure I'm on the right path here.... I decided to stop my direct deposit to my current checking account, as I beleive I should close that account as I have a LOC with the same institution, which will be included in the bankruptcy. I've decided to open an account at a different bank, but I'm going to hold off on direct deposit. I plan to just cash the check and deposit a set amount for bills I pay by check (utilities, mostly) and do everything else by cash. Is that a decent plan?

    As for credit cards, I do have some recent charges (within the last 90 days), no single charge over $500, and most of the charges were for things like groceries, personal care services, vet bills, etc... There are a few smaller charges mixed in that could be considered luxury items (XM radio monthly subscription that I forget to cancel, a new modem for the place I'm going to be living (I telecommute once a week or so), etc..). I would like to file ASAP, but I understand there is a 90 day look-back period. What is the worst case scenario if I file before 90 days from the last charge? If those items would not be discharged, how long would I have to pay them back? Or would my entire case be dismissed? Note: I have not stopped paying on any credit cards as of yet, but I will have to in order to pay my attorney. Suggestions (besides to STOP using the credit cards - I get that, and I plan to not use any going forward).

    Also, I have a young daughter, and X-mas is coming. Am I okay to buy a couple items (with cash), or is this completely frowned upon?

    #2
    I think you have a good plan. Probably by the time you get the lawyer paid and are ready to file, the 90-day period will be up. I think your plan for the checking account is a good one, and hiring a former trustee is great. The expenses that go along with raising a child are expected (that's why they are considered when determining income to qualify for CH 7) so they understand that you have to spend $ on your kid, so I don't think spending some cash on your kid will be frowned upon. Check out local "Secret Santa" and "Angel Tree" organizations to see if you qualify for some help with your daughter's Christmas gifts as well. good luck!
    Filed CH 13 September 17, 2007
    Plan Modified July 8, 2009 from $1100/month to $400/month due to change in income, finally discharged in July of 2013!

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      #3
      Sounds like you have a pretty good handle on your situation. i.e. Atty..stopping Direct deposit etc. I would suggest you make sure you have statements for your current bank account prior to filing. Just incase they give you crap for stopping your direct deposit and not having any activity in the account. Don't buy any large ticket items for Christmas. I wouldn't use to much cash, it's a little easier to explain where the money went using your debit card and having bank statements to back it up. I doubt they would ask. However, it might raise an eyebrow if looking at previous bank statements and all those charges are gone. Food for thought. I have yet to have my 341 so this is just my opinion.

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