Balance transfers to pay off vehicle...

[enufsanuf]

Since I can keep a car (I think so) in my state, what are the rules about taking a cash advance or balance transfer to pay off a vehicle. I already know people will look at this with a negative tone, but I'm trying to get things in order before filing. How would I need to wait?

[keepmine]

You need to know the amount of equity that is exempt in your state. You don't want to have car with excess equity that can be seized by the trustee.

I'll also say, you're treading on thin ice. If a bk decision is something that's a real possibility, a prudent person would stop using those cards.

[brokemommy]

I plan I balance transfering my auto loan to discover, if things suddenly turn ugly and I file, I have done one of few available bankruptcy pre-planning ideas. I can't believe enufsanuf and myself are the only ones to think of this?

[anonymuse]

Enuf,
If you pay off your vehicle, you may have too much equity in it based on your state's exemptions. "Owning" it, may not be a good thing. Will you be able to keep up your payments post-BK?

BM,
Just because transfers and cc purchases don't fall within the 70/90 day rule, does't mean that the trustee can't look back further and probe deeper for patterns of behavior. And if you do that transfer, you could lose your car also if you have too much equity in it. So, if you think harder about it, you might see that it is poor pre-BK planning.

[CAB_44]

okay~ when we went to the attorney the other day~ I had a question about balance transfers~
She said that it could definately cause some red flags.....she wanted to know how much I did, and since that is considered "using the cards recently- 30-60 days ago" that could be construed as fraud...so be careful guys!
I didn't plan on doing the BK thing until way after I did these things, and it still is going to cause some eyebrows to be raised..... even though I did not do it intentionally....I was trying to get a card closed so I transfered the balance to two other cards (divided it up).
I would not even think about doing a balance transfer if I was contemplating BK at this point..... I never was a good liar~ they would know it in a minute........
you had better not plan on doing BK for at least 6 months if you do a transfer.....

[SinkingFast]

okay~ when we went to the attorney the other day~ I had a question about balance transfers~
She said that it could definately cause some red flags.....
you had better not plan on doing BK for at least 6 months if you do a transfer.....

If the transfer is in excess of $600 and within 90 days of filing, the Trustee could view that as a "Preferential Payment" to a Creditor. The Trustee could, and most likely would go after those funds for disbursement to other Creditors. Also, the Trustee get's to scoop a % cut off the top for "Administrative Fee".

[newday]

I think you're better off reaffirming the car loan and continuing to make payments after you file. I think what you're hinting at is that you want to pay off the vehicle with money you're planning to default on. Not wise.

[aa06a47]

While your pre-bk planning may seem clever, you may need that secured debt to pass the means test to get a chapter 7. No car note....well, you haven't stated your income, but without the car payment, it may show you with enough disposible income to pay a chapter 13 plan.

I would only use this tactic to get rid of debt that is not dischargable in bk, and then I would wait at least 6 months after doing so to file.