Visa CC and Cash Advances

[Amy26]

I took 2 balance transfers from Discover in March to pay off some higher interest cards to try and get my payments more managable. One for almost 4,000 and the other 6,000. I made 2 payments from April and May and then filed in June. I have not heard a peep from them *knock on wood*.

Not saying you will experience the same thing... but I think you would be safe making small payments for a while longer. I was actually current on almost all my bills when I filed with the exception of my mortgage and a few credit cards that had like a 400+ minimum payment. None of these payments were questioned or investigated. I think they care more about if you make a 2,000 payment to one creditor close to filing. Not really sending 50 bucks a month.

[Chowder]

Remember, preferential payments mean little to you. If, and it has to be substantial, payments are an issue, it's the one the payment is made to that loses out when the Trustee reclaims and dispurses those funds.

[banca rotta]

[QUOTE=mhman;322541]Thanks for all your comments and suggestions.

As AngelinaCatHub's opinion, if I choose a creditor to pay longer than other creditors, it would look preferential. I stopped all payments except this credit union visa card from this month.

QUOTE]


True but that mostly is an issue inside 90 days prior to filing unless it's an insider. I wouldn't worry about this. You need to avoid a creditor objection at all costs.

[mhman]

Thanks for all your comments and suggestions.

As AngelinaCatHub's opinion, if I choose a creditor to pay longer than other creditors, it would look preferential. I stopped all payments except this credit union visa card from this month.

However, considering all the opinions (amount, time, credit union, etc), I'd better pay minimum couple of months more to be safe.

The first and second attorneys are both very inteligent and confident about my case (Some other attorneys were terrible!) It's really hard to choose whom....

I planned to file BK this December but I would be filing in January 2010.

But I am wondering how I can handle all creditors / CA's calls until then.

The first attorney said that I can forward all calls to the attorney's office after I retain her. My mind is leaning to the first one now......(Since she is more specific on 6-month rule on cash advance, and the call forwarding sevice.)

[Chowder]

Pay minimums if possible if possible. If not, then try to put as much time as possible between the last cash advance to your filing date.

[banca rotta]

And here's another case of two different attorneys giving different advice. Both of them can't be right!

I agree with the first one and wouldn't give the second one one cent since he is setting you up for a discharge objection.

I also agree with albacore credit unions are more likely to object.

Gotta love these attorneys.

Smart move in asking the real experts first! That's what separates the good bk cases from the bad.

[backtoschool]

$9,200 cash advance from a credit union will be contested by the credit union most likely, so the more time you can make minimum payments the better in my opinion. And I would wait as long as possible to file after taking these advances, since credit unions are notorious for filing AP's and for showing up at 341's. At my 341 there were 5 or 6 creditors there for people (not me) and they were all credit unions asking questions about cash advances or personal loans. But of course your mileage may vary.

Six months is the minimum you should wait on those advances. So December is the absolute earliest you should file. (which you said in your post that is when you are filing). If you could wait longer than six months to file, that would be even better.

[albacore44]

I have to agree. However, if you stop paying the others as well, it could look preferential. I would stop all payments in October, (not too far from now) and then stop that one. 9.2k is a lot of advance. 'Hub

And dont forget its a Credit Union and they seem to file more objections than most.

[AngelinaCatHub]

Personally I would pay the minimum a few more months, then send in token payments (like $50.00) till you file. That is a large amount of money you got so you want to show that you intended to pay it back when you took it....

I have to agree. However, if you stop paying the others as well, it could look preferential. I would stop all payments in October, (not too far from now) and then stop that one. 9.2k is a lot of advance. 'Hub

[whipster1]

Personally I would pay the minimum a few more months, then send in token payments (like $50.00) till you file. That is a large amount of money you got so you want to show that you intended to pay it back when you took it....

[mhman]

I tried to find any similar threads but I couldn't find. So there are some similar answers for this, please put any link the threads below.

In May, I had two cash advances from a credit union visa card.
$1200 and $8000, respectively (15 days apart). I have paid minimum up to August.

Most of these cash advances were used for paying other bills though.

My first attorney recommended to keep paying the minimum at leat six months to avoid any objections.

However, the second attorney strongly recommended me to stop minimum payments and save them for the future. He said that it's over 90 days so it's not worth to pay them.

Anybody has a similar experience on this type of cash advance?

Thanks in advance and have a wonderful day!

(I am going to file chapter 7 in December)