Told my wife

[drowning123]

I agree, Blackgoose. Hold on to your cash. I got a couple of payday loans a few weeks before I filed and I had no troubles with the Trustee. I just kept digging myself deeper and deeper. "Oh yea, I'll be able to pay that back." I had an epiphany. I was robbing Peter to pay Paul. I couldn't keep up. Then I found this wonderful forum, just like you did, and here I am almost a year later, free and clear of all debt. I should change my name from drowning123 to floating123.

[nceguyfromne]

Actually, a debtor shouldn't be worried about preference payments unless the payments are to somebody they care about, like a family member. If preference payments are made, the trustee goes after the creditor for the money, not the debtor. The reason not to pay dischargable debts when you know you are going to file is that you are throwing money away.

Granted the extra burden is on the creditors and trustee, wouldn't that nonetheless create an Asset Case where one might not have otherwise existed? By all means, please correct me if I'm wrong. I'm asking because I don't know the answer.

Bottom line, Blackgoose, hold onto your cash. It's going to do you and your family a lot more good than your unsecured creditors at this stage in the game.

[LadyInTheRed]

In fact, you should stop making these payments to avoid a "preference" situation. Ideally you want to have not paid your unsecured creditors within the last 90 days at the time of filing.

Actually, a debtor shouldn't be worried about preference payments unless the payments are to somebody they care about, like a family member. If preference payments are made, the trustee goes after the creditor for the money, not the debtor. The reason not to pay dischargable debts when you know you are going to file is that you are throwing money away.

[nceguyfromne]

But I have charges of 2k within the last 90 days. Won't they come after me?

If you're going to borrow money, use it to sustain your family, not your dischargeable debts! As long as you are filing 90+ days after incurring the charges then you'll be fine. You do not have to continue making payments for 90+ days after incurring the charges. Those are two completely different animals. In fact, you should stop making these payments to avoid a "preference" situation. Ideally you want to have not paid your unsecured creditors within the last 90 days at the time of filing.

As for your creditors coming after you for defaulting, you shouldn't have any issues as long as you're planning to file your case in the next few months. Your creditors won't even consider sending your accounts to collections until you're 90+ days late. AMEX was the only creditor that sent me to collections (shortly after 90 days late) but they were also my biggest balance by far. I ended up filing a couple weeks after that so it was a non-issue, but I'm pretty sure I could have held them off for a few months before a judgment became a concern.

[LadyInTheRed]

Anything's possible. But, if you wait 90 days between the charges and filing, even if you had made no payments, the creditor would have to prove you incurred the debt without intending to pay it. You have already made a couple of payments since making the charges, which is a fact on your side. But, it is unlikely to even become an issue. It really isn't worth $2k for a creditor to file an adversary proceeding where the burden of proof is on them.

ETA: Also, if those charges were not cash advances or for luxury goods and services, the creditor will still have the burden of proof if you filed the day after you made the charge.

11 USC Section 523(C)

(i) for purposes of subparagraph (A)—
(I) consumer debts owed to a single creditor and aggregating more than $500 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 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

[Blackgoose]

But I have charges of 2k within the last 90 days. Won't they come after me?

[LadyInTheRed]

If you are certain you will file BK, there is no point in paying your credit cards, especially if you have to borrow money from family to do so. Don't throw good money after bad.

[Blackgoose]

Hey guys so I'm about a month away from being at the 90 day with no charges on cc. Except I'm out of money. Would it be ok to borrow 1k from my parents to make min payments for one more month to carry me over the 90 days?

[IamOld]

It is indeed nice to see you back here!

Generally it's ok to buy a new car WITH A LOAN (and make sure that lien is perfected/recorded!!!) - BUT now since you're in this situation, I wouldn't do anything until you retain and speak and get advice from a BK lawyer!!!

Hey guys! Hope you're doing well. Still looking for a good attorney. I'm also waiting 45 more days so I don't have any credit card charges the last 90 days.

So we have a family car with 100k miles on it. Is it ok to buy the wife a new car before we file? Also, how far back do they look on bank statements?

"When one door closes, another opens, but often we look so long at the closed door that we do not see the one that has been opened for us"

[Blackgoose]

Hey guys! Hope you're doing well. Still looking for a good attorney. I'm also waiting 45 more days so I don't have any credit card charges the last 90 days.

So we have a family car with 100k miles on it. Is it ok to buy the wife a new car before we file? Also, how far back do they look on bank statements?

"When one door closes, another opens, but often we look so long at the closed door that we do not see the one that has been opened for us"

[Blackgoose]

That is GREAT news. Thanks guys!

[IamOld]

Right in a non community prop state authorized users have ZERO liability.

[TrainWreak]

Hey guys. Again, thanks again for all kind words and positive mojo.

We ready for some question?

All my meetings with attorneys have left me unimpressed. Still looking for the right one.

Pulled the wife's credit and it showed on her cc debt a couple cards in my name. I made her an authorized user. By deleting her from the account will that come off her report and will she still be responsible?

Thanks guys.

Glad to hear things are working out so good!
I live in a non-community property state, Illinois and I believe Utah is too. My wife was an authorized user on one card. After doing some research it appears I have nothing to worry about in a non community property state since she was not a cosigner on the application. I of course don't want to leave out the remote chance of an unscrupulous lawyer or junk debt buyer trying something after discharge. But if that happens I will fight them all the way to the mat!

[pathfinders]

GB glad things are going well ........

[911mom]

That is sooooo great to hear...will pray thingsl continue to be good for you and your family...love your ending quote by the way;)