Planning to file

[MC101296]

I met w/an attorney last week to go over what needed to be done and if chapter 7 was the best option, it is. The one problem is we paid back a loan of about 2k to my father in law in March. So we have to wait 1 year to file.
We are current on all accounts have about 55k in cc debt. The reson why we can be current is cause we continue to use the cards for gas & food. I was planning to stop using the cards in November in preparation of filing April 1.
If we stop using cards now and stop paying them will they try to garnish my wages? If we use the cards for car repairs (need new tires really bad) and emergencies it is ok as long as we do not go over $500 for one item correct?

[ccsjoe]

I can only tell you what my attorney told me here in northern CA. Using the cc's for incidentals and/or verifiable emergencies within reasonable amounts should not be an issue. I just barely stopped using my cc's last week and we plan on filing by end of month. Of course you realize as soon as you stop paying you won't be able to use them either right? Normally they will freeze your credit line until you pay.

As far as wage garnishment, before they can do that they would have to sue you. Before they sue you they will attempt collections. And even if they get to the point of suing you, you can always file answers to the suits and take several administrative steps I've read about and have been mentioned consistently in this forum that gums up the process for several months, allowing you to potentially reach your filing timeframe. You will need to make sure that you show up for all court appointments so they don't get an automatic judgement against you. That's just what I've garnered from reading and attorney consultations, you will always be better off getting an answer from your attorney.

[researchnerd]

Wage garnishment can take a while - 6 months to more than a year. Before they can do that, they have to sue you in court and win a judgment against you. You will receive notice of this before it happens, so it wouldn't be a surprise.

Waiting a full year after paying back a loan seems excessive to me - 6 months would probably be fine. I'd recommend meeting with another attorney to see what they say.

[MC101296]

Thanks for the info.

Both attorney's I have met with have said 1 year gurantee no questions will be asked. They said if it is less than a year they can technically go after my father in law for the money.
I have to save up money to pay for the attorney so it will be a little time before I can file.

[keepmine]

Waiting a full year after paying back a loan seems excessive to me - 6 months would probably be fine. I'd recommend meeting with another attorney to see what they say.[/QUOTE]

This is a payment to an insider and the lawyers are correct.

http://doney.net/bkcode/11usc0547.htm

(4) made--

(A) on or within 90 days before the date of the filing of the petition; or

(B) between ninety days and one year before the date of the filing of the petition, if such creditor at the time of such transfer was an insider; and

[researchnerd]

Waiting a full year after paying back a loan seems excessive to me - 6 months would probably be fine. I'd recommend meeting with another attorney to see what they say.

This is a payment to an insider and the lawyers are correct.

http://doney.net/bkcode/11usc0547.htm

(4) made--

(A) on or within 90 days before the date of the filing of the petition; or

(B) between ninety days and one year before the date of the filing of the petition, if such creditor at the time of such transfer was an insider; and

Good to know. See, this is why I'm not an attorney

[justbeach03]

I'm waiting till next May11- I stopped paying cc in oct09. If you stopped, knowing that it will take quite sometime for any garnishment judgements...can you save up and pay cash for what you need?

[MC101296]

yes if I stopped paying my cc's I would be able to get by. That is the plan once I retain a lawyer, probably in November