Did I unwittingly commit fraud? Wait longer to file

[Maquis]

Here's my story: I had stopped paying on a few cards a year ago, original intent was to settle with them. Kept a couple cards open, and used them some - kept paying on those of course.

In December, I charged over $1000 on a card (which I had been current on) and then everything else fell apart. I made my last payment in January to that card. I now am preparing for a Chapter 7.

Reading some of the information here, could this be considered fraud, since I made a large purchase then stopped paying the next month? That purchase was outside the 90-day window, but would the CC attempt to fight it as fraud?
If so, would it help to wait another month or two to file?

[scorpion35]

Here's my story: I had stopped paying on a few cards a year ago, original intent was to settle with them. Kept a couple cards open, and used them some - kept paying on those of course.

In December, I charged over $1000 on a card (which I had been current on) and then everything else fell apart. I made my last payment in January to that card. I now am preparing for a Chapter 7.

Reading some of the information here, could this be considered fraud, since I made a large purchase then stopped paying the next month? That purchase was outside the 90-day window, but would the CC attempt to fight it as fraud?
If so, would it help to wait another month or two to file?

if u charged $1000 and only made 1 payment i think the trustee might object and make u pay it back.
i would wait 2 more months , but i am no expert

[ssmdem]

Similar situation here -- but I charged $1000 in one month but have made TWO payments - both totaling a little over $1000 - think I'm okay to stop payments now?

[justbroke]

Reading some of the information here, could this be considered fraud, since I made a large purchase then stopped paying the next month? That purchase was outside the 90-day window, but would the CC attempt to fight it as fraud? If so, would it help to wait another month or two to file?

No one can say with any specificity that your creditor would file a dischargeability complaint. I would say, that if the balance of that creditor account is less than about $4K, they are unlikely to complain (file a complaint).

You did charge to that card before and showed a good pattern of payment, so I don't think this is one of those cases in which they could prove that you intentionally defrauded them. In many of these situations, you are really just overthinking the issue.

[Maquis]

No one can say with any specificity that your creditor would file a dischargeability complaint. I would say, that if the balance of that creditor account is less than about $4K, they are unlikely to complain (file a complaint).

You did charge to that card before and showed a good pattern of payment, so I don't think this is one of those cases in which they could prove that you intentionally defrauded them. In many of these situations, you are really just overthinking the issue.

I hope that I am. I had a good payment record with them for several years before (and having the card paid off at times). I was just a bit nervous, as I will have an asset case, and want to be sure to cover my bases.


Thanks for the opinions!

[justbroke]

I hope that I am. I had a good payment record with them for several years before (and having the card paid off at times). I was just a bit nervous, as I will have an asset case, and want to be sure to cover my bases.

Even better that you have a long history of payments. It would be worse if this were a brand new line of credit that you quickly gobbled up, then stopped paying.

[keptdigging]

I'm no expert, but I can do math. Once you're outside of the 90 day window (so they don't have the presumption on their side), how can the cost of an AP be worth it to the CC company? (For a $1,000 charge.) I suppose maybe they could make some noises since it costs little to write a letter, and maybe bully you into paying them a few hundred.

And the trustee cannot "make you pay it back." The TT won't care (unless you bought something he can sell... which he would be happy about.) The creditor has to file an Adversary Proceeding which is basically a full fledged lawsuit within the bankruptcy. And they have the burden of proof.

The only creditor I can see going through this for $1,000 is an individual with a grudge.