BK coming....have some questions.

[jamesboy]

Finally bit the bullet and realized that i can't keep paying CC and LOC credit. After 2 1/2 years with no real job, i will have to file i think. I am thankful to have found this forum as some of my biggest issues on this are mental. You know what i mean i am sure.

I am in the pre planning phase and I will be meeting with an attorney in the near future, but had some questions that maybe someone can help me with. As i am now current with everything, this is the last month that i can keep that up. Couple of questions here!

1. What do i need to watch for as regards CC purchase? If i charge a living cost thing, is that considered a problem? I did read about the $600 limit per creditor, but is that within a specific time frame prior to filing?
2. If i waited a while to file, i'm sure the bank will probably sue and get some kind of judgement. Is that a real issue in regards to the BK? Or should i make sure i file earlier so that no judgement is filed? Just wondering if there is any critical issue here other than collection phone calls?
3. About 8 months ago, i forgave and gifted a real estate contract debt. Is this something that is a problem? Or is there some time constraint on that? I certainly don't want to drag them into this.

Thanks to you all for this service. Its a first for me, but i am learning more about myself than i have for a long time.

I appreciate your input...

James

[espo1357]

Finally bit the bullet and realized that i can't keep paying CC and LOC credit. After 2 1/2 years with no real job, i will have to file i think. I am thankful to have found this forum as some of my biggest issues on this are mental. You know what i mean i am sure.

I am in the pre planning phase and I will be meeting with an attorney in the near future, but had some questions that maybe someone can help me with. As i am now current with everything, this is the last month that i can keep that up. Couple of questions here!

1. What do i need to watch for as regards CC purchase? If i charge a living cost thing, is that considered a problem? I did read about the $600 limit per creditor, but is that within a specific time frame prior to filing?
2. If i waited a while to file, i'm sure the bank will probably sue and get some kind of judgement. Is that a real issue in regards to the BK? Or should i make sure i file earlier so that no judgement is filed? Just wondering if there is any critical issue here other than collection phone calls?
3. About 8 months ago, i forgave and gifted a real estate contract debt. Is this something that is a problem? Or is there some time constraint on that? I certainly don't want to drag them into this.

Thanks to you all for this service. Its a first for me, but i am learning more about myself than i have for a long time.

I appreciate your input...

James

James, you are all over the place. If you can't pay your creditors, then you should consider filing. Its that simple.

They will go back 6 months, checking your bank statements and other assets, so plan accordingly.

No need to complicate things.

[feelingnutsy]

Make sure that you file before you anticipate a judgement---
and you'll certainly receive the legal paperwork to let you know.

[helpmeout]

First of all, you need to stop using all of your cc. You also can stop paying them. You will get a lot of phone calls. But you may have some time before they sue, how long is anyone's guess.

As for #3, who was party that owed you money? This may present a problem, when you consult with a lawyer (and consult with more than one), bring it up.

[frogger]

1. What do i need to watch for as regards CC purchase? If i charge a living cost thing, is that considered a problem? I did read about the $600 limit per creditor, but is that within a specific time frame prior to filing?

You need to stop using the credit cards immediately. You know that you are filing for bk, so continued use of them could be considered fraud.

2. If i waited a while to file, i'm sure the bank will probably sue and get some kind of judgement. Is that a real issue in regards to the BK? Or should i make sure i file earlier so that no judgement is filed? Just wondering if there is any critical issue here other than collection phone calls?

It's best not to have to deal with a judgment, however most judgments can be avoided in the bk process.

3. About 8 months ago, i forgave and gifted a real estate contract debt. Is this something that is a problem? Or is there some time constraint on that? I certainly don't want to drag them into this.

This could get sticky. The person that you forgave... was it family or friends? If so, you could very well have a problem. Any transfer of property within 2 years of filing will need to be disclosed, and by forgiving a debt, you facilitated the final transfer or property.

Thanks to you all for this service. Its a first for me, but i am learning more about myself than i have for a long time.

I appreciate your input...

James

Good luck.

[jamesboy]

Thank you all for your responses .....yes i will be speaking with an attorney next week. ALways appreciate the input of those who have walked the path before me.....

[JoePlumber]

Our troubles just caught up to us sooner is all, someplace and time we have all used more credit than we should have and in time you'll find that a CASH lifestyle is worth more than credit ever offered, its peace of mind knowing you don't owe anybody but for a car or your living expenses, very cool feeling when its over. Enjoy and follow your gut feeling on the Attorney you retain.

JoePlumber

[jamesboy]

Thanks Joe for the encouragement. I'm one of the many who after many many years of being imprisoned by credit score, etc got the AX as the company shut down entire divsions almost 2 1/2 years ago. AM so amazed that there just aren't the jobs out there. I'm still a couple of years from retirement so we will just have to make due. Living on savings and then credit was a way to survive and bridge the unemployment gap. Problem is the gap is too wide.......... Yes....we will walk on.

[dman]

1. If you are planning on filing bankruptcy, then you should not use any credit cards whatsoever. The presumption of abuse arises if you charged more than a certain amount (I believe $500) for LUXURY purchases within the past 90 days, or had a cash advance within the past 70 days. So, if you charged $150 last month for gas, another $300 for groceries, and had a small cash advance, that's probably ok. If you charged a Disney vacation, that's probably not ok. It's all a grey area, you do need to speak to a lawyer.

2. The sooner you can file, the better. Read up on all the info here, check with multiple lawyers. If there's no reason to wait, then file now. If you file now, your credit report will only have one negative (a bankruptcy), you won't have to worry much with collectors calling, there'll be no issues with judgements, etc. If you wait, then your credit report will have multiple lates (plus a bankruptcy once you file), you'll get harassed by collectors, might have to worry about judgements, etc.

If you do need to wait, then the question would be, what would a judgement do to you? Do you have bank accounts or wages that could be garnished? Do you own a home or vehicle that could have a lien put on it? If you have no money and no assets, then a judgement won't have much affect on you. If you own a home, a creditor could put a lien on it, and it'd be more of a hassle (read, more money paid to your lawyer) to get that stripped off.

3. Definitely need more info. And you really need to have a few free consults with lawyers in your area.

Generally, there's three timeframes to worry about; 6 months, 12 months, and 2 years. The lookback period can go even further, but generally they look at certain things 6 months back (for example, your paystubs and other financial info), other things up to a year back, and yet other things (like property transfers between family members) for two years. Each district is different though. It's possible that they could technically look back for say, two years; but in practice just look back for a year unless something catches their eye. Your attorney might advise you that your particular situation probably wouldn't come up (think, don't ask don't tell), but you'd need to know the ramifications in case it did (and if it could adversely affect someone else, give them a heads up). Then it'd be your call whether to go ahead and take the gamble, or try to wait it out (i.e., wait until it's past the two year look-back or what-have-you).

[jamesboy]

Thanks dman! Appreciate your input. Am learning so much. I am not in a hurry and i am pretty judgement proof. I am just trying to educate myself before attorney consults. For my item 3, I had financed a piece of property acouple of years ago that my daughter and her husband bought. (i wasn't involved in the property ) I was just the "finance company" trying to help them. So i don't know if this is an issue that needs to be brought up as it is pretty old news. Haven't seen anything like this on the forum.

my best to all.

[pikaroth]

While I fully realize it has been said, and I am now days late on this, I want to agree with everyone: stop using your credit cards (all of them) right now. Do not wait, do not purchase anything small or 'needed.' Stop using them completely, cut them up if you have to. Just do not use them.

On the same note, also stop paying all CCs now. If you have a payment due tomorrow, do not make it. You will, of course, start getting phone calls (some are immediate, some wait months - it all depends on the company from what my experience showed me). As soon as you retain an attorney, and even if you have not filed yet, the calls will stop because you should then answer your phone, advise them you have an attorney, and they should then get his/her name and number and that will be that. Once the filing is actually done, you won't hear a thing at all from them via phone or mail.

I, and everyone here, wish you the best of luck, and do not stop posting!