recent debt/cash advances

[gsreyrey]

i've been reading through the forums...

everyone pretty much recommend 6 month (some said a year), after taking out advances before filing ch.7

does that mean making 6-12 payments before filing? or make a few payments, but wait 6-12 month before filing??

[ccsjoe]

I think it means wait 6-12 months before filing. However, being how much subjectiveness there is on this matter, it also depends on the amounts and the use of funds.

[wnguyen]

I think the main objective here is to wait for at least six months and in the meantime, try not to incur any more charges on the credit cards and use the funds on legit expenses. If you're generous and dumb like me (I didn't mean you're dumb) then pay the monthly minimum payments. Anyway, it's just a personal case and just follow your guts and put your family and loved ones first.

[readytofile]

You need to wait 6 months or so but you also should make payments as well. You don't want them accusing you of taking a cash advance with no intention on making an effort to pay at least something back.

[tcreegan]

cash advances

Hello all,

Here is the actual law specific to cash advances (I hope this is current, didn't check date) note: luxury purchases have their own rules


BUT.....isn't there always a catch.......a creditor can file an objection to the discharge of their debt if they suspect fraud. This is from Moran Law Group in Mt View CA

Hot buttons for card issuers

While each card issuer has a different practice about non dischargeability actions, each of the following circumstances probably increase the likelihood that the debt may be subject to challenge by the creditor:

* Increase in credit card usage shortly before filing
* Newly issued card
* Large cash advances in months before filing
* Use of card for recent travel or vacations
* Pattern of borrowing on one card to make payments on others
* Exceeding credit limit
* Using card when unemployed or without reasonable belief that the debt can be repaid
* Large balance at filing
* Charges made after consulting bankruptcy lawyer

Generally, the longer the length of time between any particular use and the bankruptcy filing, the less likely the usage will trigger a challenge to dischargeability. A complaint for dischargeability based on fraudulent use of the card may seek non dischargeability for certain of the charges, not necessarily the entire balance.

The biggest issue seems to be getting cash w/o ability or intent to repay.
Of course the creditor can object, but then they have to do an AP and you get to tell your side of the story. And, all this costs the creditor $$ in legal fees so small amounts aren't worth going after.

Remember this is different than the trustee looking for cash for the BK estate. To keep the trustee happy, document how you used the cash advance; folks who use it for legit household expenses consistently report that they were OK

Hope some of this is useful....

Tom in Colo

[backtoschool]

If you took cash advances on your credit cards, you have to wait a minimum of 90 days from taking the advance to file because 90 days is the legal definition of insolvency. If you use your credit cards within 90 days of filing, it is presumed legally that you knew you were insolvent and couldn't pay the money back. Therefore your creditor's can file an AP and not have to prove any intent of fraud and that debt becomes non dischargeable.

After 90 days, your creditors can still file an AP but they have to prove intent to fraud. So, if you take a large cash advance and never pay anything on it, your creditors will have a pretty solid case that you never intended to pay that money back when you took the advance. The way to avoid this happening, is to make small payments on the debt and to wait as long as possible between taking the advance and filling. This weakens the creditor's case that you never intended to pay the money back, and the creditor will have less chance of winning the AP.