Anyone who takes the time to respond to all these questions is an angel...

[ava1983]

Hey guys, 25yrs/student/$30,000 debt here again. After talking to you all, I realize I need to make a couple life-affecting decisions this weekend and that my situation might be more complicated than it originally sounded. HELP!!

I'm hoping to call a few bankruptcy lawyers next week but I NEED TO KNOW FIRST:

Will simply talking to a bankruptcy lawyer for advice become legal evidence that I already have no intention/way of paying back my debt, even if I don't end up actually filing for a few more months? I have a few old cash advances (yet still less than 90 days) from my "reserve line" that went directly to my checking acct. The line between what was a "reserve line of credit" and is NOW in my "checking acct." is fuzzy. Allll of my credit cards, this reserve line, and my checking account are from the same bank. Yikes. One big giant monster coming after me - but the same monster that I deposit my checks into every week.

So because of that, is spending money from my checking acct. (granted, that has a larger sum of money in it because of these cash advances) to pay for things between now and filing considered fraud?? Will talking to a bankruptcy lawyer make it look even WORSE? I can't stop making ALL purchases from my personal checking account before bankruptcy, right? And the legal line between "necessities" and "luxuries" is also fuzzy.

I am just so confused if I should be making small payments to my bank/creditor so that it doesn't look like I just stopped with the payments while still continuing with the charges (I stopped paying the minimum 2 months ago.. just quit cold turkey). This is essentially what happened, however I originally thought I'd be able to pay it all back.. but since the numbers don't add up with income:debt ratio, will that be believable to a judge??

Will all the $30,000 be proven as fraud (is my case DOOMED??), and should I speak with a bankruptcy lawyer as early as next week or wait a couple of months to buy some time without using credit?? Close the credit accounts and reserve line?

Scared of both the time-line of my situation and esp. how to handle my money/checking account in the next couple of months. None of it seems like my money anymore, but I still have to pay the bills. Don't know if switching banks will solve anything.

I'm young, a bright student and good friend, but way in over my head financially, it seems. I would much rather be poor with no debt than in this fuzzy legal prospect .


Seriously looking for help. "Doomed" seems the most likely scenario for me right now. I worry it'll never be discharged since it's all one bank.

[OhioFiler]

You're over-analyzing your situation.

Many people do exactly what you've done.

I would suggest opening a new checking account elsewhere.

I would definitely make minimum payments on those cash advances for a couple months.

Meet with an attorney as soon as you can. Once you meet with an attorney he/she will most likely advise you to stop using your credit cards and credit lines.

Take a deep breath and relax. It's not worth stressing a 10 years off your life.


Added: NOW I read your other thread. No reason to duplicate post. Are you related to swampwiz?

[keepmine]

The issue is not talking with an attorney that can cause problems.
It's what you do after your consultation. Do you charge up a storm knowing the debt will be wiped out in bk? Do you transfer assets to family members?
Just talking with a lawyer prior to filing is not fraud.

[Flamingo]

Hi Ava - you received a lot of similar fantastic responses in your similar thread. Please see my last response to you there before the thread was closed as being a duplicate subject matter thread. This thread will remain open for you...

[NanaOf11]

Ava,

My two cents, I ditto the other posters here...

1 - Open a new checking acct somewhere at a bank or Credit Union not related to your current bank that holds your debts. Use that for your check cashing etc..

2 - Speak with an Attorney ASAP, most will give a free consult! Make a list of questions as you will forget when you are there. That will get you answers on your own situation.

3 - Take a deep breath

Couple questions if I may...

Secured Loans?
Real Estate?
Student Loans?
IRS or State Taxes owed?

I know that $30k seems overwhelming for you right now but IMO that is a very small amount to file BK.
Might a credit councelor help? Maybe other options instead of the HUGE negative hit you will take on your CR for 10yrs.

Wishing you well

[ava1983]

Thanks for the advice, everyone. Thanks for reminding me that my fear is normal. Learning to survive without my credit cards IS going to take some work - is there a good thread I should look at for advice on that itself? I am definitely in poverty wages as a full-time student, so budgeting with no emergency line I can use (car breaking down, etc.) will be a challenge. Living paycheck to paycheck is my only option for years, eh? I have no clue how to be in control of my finances. Man I wish they taught these things in high school.


ALLLLL of the $30,000 debt is with one bank alone, also. Does this make it less likely that I will be discharged or just take more work? It does seem that my creditor will have a lot of incentive to look carefully at everything. $30,000 incentive. I bet they'll put up a huge fight. And not all my charges were necessities.


I will be calling a couple attorneys Monday. I'm nervous, but you guys are right that knowing more information will help me feel in control.


One more question: do either public or private universities do credit checks on potential students? I'm hoping to get into a really good 4-year school after community college (I'm pretty bright, just not in math.. heh.) but if my eligibility is based on good credit, I'm afraid that I'll be doomed. They don't look into that, right?

[momofthree]

May I suggest Dave Ramsey's "Total Money Makeover" for learning to live without credit? I have the book on CD so I could listen in the car and it is AWESOME!

[NanaOf11]

Credit is looked at for many things you would NEVER connect it to, such as Auto Insurance, Cell Phones etc... Do not know about schools. I would "Guess" yes, they might look as I know many employers do now as well.