A Couple of Questions

[Foofy610]

Good morning,

1) We may stop paying our credit cards next week, and file in a couple of months. Need to save for legal fees. We're worried about not paying our credit cards. What happens if our BK gets dismissed? FYI... we passed a means test online.

2) If/when we stop paying the CC bills, we will probably have some excess cash in our checking account by the time we file. Is there a certain max we can have in our bank accounts? Or should we pay our HELOC with any excess?

3) How long do you think we have before the CC companies begin legal action?

4) Prior to filing, we'd like to stock up on household items & food. I am aware of the CC abuse issue, and we're not going out and buying diamonds and furs. How many days prior to filing will the court scrutinize our CC statements?

Thanks for any help!

[keepmine]

If the bk is dismissed, you lose the protection of the automatic stay and creditors can come after you again.
You'll have months if not years before there is any legal action from credit card companies.
Your individual state exemption will dicate how much cash on hand you can keep on filing date. Your lawyer will answer this one.
Just be aware of the 90/70 day rule as to cc use and BT's.
Theer are alot of aceptable uses for excess cash. Medical/dental care you and your family may need. Eye exams and new glasses/contacts. Car repairs. Needed home repair/maintence,etc.
I'd not pay down a mortgage or car loan prior to filing unless your lawyer says it's OK.
Trustees differ in the number of cc statements {if they even want them}.Were I you I'd have a years worth of bank and credit card statements. Print 'em out now before you default in case they take away online access.

http://doney.net/bkcode/11usc0523.htm

(C)

(i) for purposes of subparagraph (A)--

(I) consumer debts owed to a single creditor and aggregating more than $500 [$550] for luxury goods or services incurred by an individual debtor on or within 90 days before the order for relief under this title are presumed to be nondischargeable; and

(II) cash advances aggregating more than $750 [$825] that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 70 days before the order for relief under this title, are presumed to be nondischargeable; and

[newbie2]

Good morning,


4) Prior to filing, we'd like to stock up on household items & food. I am aware of the CC abuse issue, and we're not going out and buying diamonds and furs. How many days prior to filing will the court scrutinize our CC statements?

Thanks for any help!

If you're talking about buying your necessary items with your debit card and having bank statements, that won't be an issue. If you know you are filing for bankruptcy and are considering using the cards to stop up on items then reconsider.

[Foofy610]

If you're talking about buying your necessary items with your debit card and having bank statements, that won't be an issue. If you know you are filing for bankruptcy and are considering using the cards to stop up on items then reconsider.

I'm confused as to what to do with the excess cash. I make monthly cc payments totalling just under $2,000. Even after our normal expenses like gas, food, meds, etc... we'll still have cash remaining. How do you think I should handle this?

[Pandora]

I'm confused as to what to do with the excess cash. I make monthly cc payments totalling just under $2,000. Even after our normal expenses like gas, food, meds, etc... we'll still have cash remaining. How do you think I should handle this?

Bigger question is although you passed the means test (i.e., no abuse) what do your Schedules say as to money left over? If you have any $ left over after all bills are paid (IRS standards) then you could be in a Ch. 13 if you have positive DMI.

Have you run the schedules?

ETA: you can use that "extra" to pay for your attorneys fees since you stated you have to save up to pay them