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    Second-guessing filing timeline

    One day I'm ready to file yesterday, and the next day I feel like I should wait 6 months.

    We relied heavily on credit cards for at least the last two years. When my husband lost his job in Nov 2010, we did a lot of cash advances to afford minimums and basic living. He got a new job, which lasted for about 6 months (lost it unexpectedly). That was June 2011. Right before losing the second job, we did a large balance transfer ($12K to one CC, $1K to two other CCs), which I posted about previously. We stopped using the cards about a week after he lost his job, when we finally came to terms with reality - that we were up the creek. But prior to that, we charged a lot. Nothing major, but groceries, odds and ends for the kids, gas, dinners... what's a $30 dinner when you have a $50K balance? (Tongue in cheek, of course.) All in all, it's about $75K in CCs and $6K on a personal loan. And the mortgage.

    Our two cars are/were cross-collateralized with a CC and personal loan, so we traded in one of the cars and charged $3K, just so we have at least one car, assuming we'd lose both because of the cross-collateralization. I'd be willing/expect to reaffirm that debt if it came to it. It was a downgrade, btw.

    So now we're on the cusp of Sept 2011. In about 2 more weeks, I'll be 90 days out from the balance transfers. In another month, I'd be 90 days out from last use of all cards, except the one that helped us downgrade our vehicle.

    Am I rushing things if we file in a month? I just want to get the show on the road. But I don't want to be asking for AP trouble. Here I'm thinking this is our fresh start, but what if I get three APs? Some people say they wish they didn't wait, others say patience is the key. I don't know what to do! Can't I get a fortune cookie to answer it for me?

    #2
    Don't rush. You have time.

    Some questions first:

    - are you retaining an attorney? Might be a good idea because of the valid questions you have.
    - at the very least, have you consulted with a few attorneys? Most first consultations are free.
    - What are your plans for the house? Are you underwater on it?

    Cash advances represent one of the stickier issues. The more time you put between those and your filing, the better.

    So, how do you survive that time before filing? By not paying on things you do not intend to keep. For most people, their mortgage is their largest payment; hence the question above. The good news is that credit card companies are bound by laws which prevent them from being overly aggressive in filing suits for non-payment. In general, you will have at least 90 days (typically 120 days) from the date of your first overdue payment before they can even initiate a suit. Then, you have the ability to buy some time if they do sue by filing answers, etc at the last moment. Frankly, it is not at all uncommon to go 180 days without a payment before a suit is filed or a judgement is granted, and there is plenty you can do along the way.

    Time is your friend here. I'll go back to some of your earlier posts to see whats what and maybe help more here. But, don't rush to file.

    Love,
    Your Fortune Cookie

    Comment


      #3
      Originally posted by pinkpeanut01 View Post
      One day I'm ready to file yesterday, and the next day I feel like I should wait 6 months.

      We relied heavily on credit cards for at least the last two years. When my husband lost his job in Nov 2010, we did a lot of cash advances to afford minimums and basic living. He got a new job, which lasted for about 6 months (lost it unexpectedly). That was June 2011. Right before losing the second job, we did a large balance transfer ($12K to one CC, $1K to two other CCs), which I posted about previously. We stopped using the cards about a week after he lost his job, when we finally came to terms with reality - that we were up the creek. But prior to that, we charged a lot. Nothing major, but groceries, odds and ends for the kids, gas, dinners... what's a $30 dinner when you have a $50K balance? (Tongue in cheek, of course.) All in all, it's about $75K in CCs and $6K on a personal loan. And the mortgage.

      Our two cars are/were cross-collateralized with a CC and personal loan, so we traded in one of the cars and charged $3K, just so we have at least one car, assuming we'd lose both because of the cross-collateralization. I'd be willing/expect to reaffirm that debt if it came to it. It was a downgrade, btw.

      So now we're on the cusp of Sept 2011. In about 2 more weeks, I'll be 90 days out from the balance transfers. In another month, I'd be 90 days out from last use of all cards, except the one that helped us downgrade our vehicle.

      Am I rushing things if we file in a month? I just want to get the show on the road. But I don't want to be asking for AP trouble. Here I'm thinking this is our fresh start, but what if I get three APs? Some people say they wish they didn't wait, others say patience is the key. I don't know what to do! Can't I get a fortune cookie to answer it for me?
      Let you attorney adivse what is best. I would thing you are fine as soon as you hit the 90 days, even if it was challenged your exspenses can be account for. Its not tlike you made lavish purchases. It seems like you ready to file at any point. Unless you have a garnehsment or have been served collection papers there is not real rush in filing. With all that I would wait another month or 2.

      Comment


        #4
        You took out a cash advance of $12k in June and you want to file in October? That is four months. I have another thread on waiting six months or one year from a cash advance. No one has given a definitive answer, but everyone agrees you need to wait at least six months.

        Comment


          #5
          Originally posted by magua2 View Post
          You took out a cash advance of $12k in June and you want to file in October? That is four months. I have another thread on waiting six months or one year from a cash advance. No one has given a definitive answer, but everyone agrees you need to wait at least six months.
          Yeah, I'm the one who bumped your post. Not to be technical, but it wasn't a cash advance, it was a balance transfer. Our only rush to file is to avoid having a car repo'ed, since it's tied in with other debts through a credit union. I think we might float it out a while and see what happens... put 6 months in between.

          Comment


            #6
            I did a huge balance transfer 9 mos. before filing........never heard one peep. My CH 7 went very smooth. As one of the OPs stated, stop paying the cards, you will have a good 3 months before anything legal happens and even then some time. To be safe, put at least the 6 mos. between the cash advances and the filing.

            Of course, my attorney said it wasn't a big deal as balance transfers are just an effort to save money on interest but I still waited as long as possible. In fact, I only filed to avoid the lawsuit Citi filed against me six months after non-payments.

            You have time, stop paying and save attorney money, and then plan, plan and plan some more for filing!!!!
            Filed CH 7 4/15/11
            341 5/23/11
            DISCHARGED & CLOSED ON 7/27/11

            Comment

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