Home Depot/Citi Financial

[AreSoonParted]

HomeDepot CC

My previous post did not state one obvious thing, as with any CC debt it depending on what you buy, and when you buy it you can still be held liable if it can be considered a bk fraud. But this is not the same as a secured debt.

OK my conscience is clear..

Good Luck,

[SinkingFast]

ASP,.............

There are many of us that realized within days or a month of fairly sizeable purchase that things weren't going to turn around and we needed to consider other options.

We bought our son's books for college late December/early January. By February, we were counting pennies and Consulting attnys. We'd kept hoping our house would sell and EVERYTHING would turn around.

HA!! Talk about living in Lah Lah Land in your mind!!

[jbr12]

What is the general rule as far as last sizeable purchases before filing for bk. For exampe, my fiance and I just got iPods on my Best Buy Card 3 weeks ago... Last week I lost my job and have very little luck finding anything that would even come close to paying the bills. I am considering ch 7 bk now. Do I need to basically wait 8 weeks or so from those iPod purchases to keep things from being fishy?

[SinkingFast]

What is the general rule as far as last sizeable purchases before filing for bk. For exampe, my fiance and I just got iPods on my Best Buy Card 3 weeks ago... Last week I lost my job and have very little luck finding anything that would even come close to paying the bills. I am considering ch 7 bk now. Do I need to basically wait 8 weeks or so from those iPod purchases to keep things from being fishy?

There's a 70/90 day rule in the New Law.

70 days on Cash Advances and Convenience Checks use totalling $750 or more.

90 days on CC use where the purchase of "luxury goods or services" exceeds $500.

If you're within the 70/90 day period when you file, the burden of proof falls on you. If you file beyond the 70/90 day period, the burden of proof shifts to the Creditor.

[jbr12]

So if the purchase is less than $500, the 90 day rule does not apply?

Here's a section I took from that link you gave me

(C) for purposes of subparagraph (A) of this paragraph, consumer debts owed to a single creditor and aggregating more than $1,000 for “luxury goods or services” incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; “luxury goods or services” do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;

Am I reading the wrong section? I ddin't see any mention of 90 days in there, only this section above.. is the 70/90 just a general good rule to follow to be safe?

[SinkingFast]

So if the purchase is less than $500, the 90 day rule does not apply?

Here's a section I took from that link you gave me



Am I reading the wrong section? I ddin't see any mention of 90 days in there, only this section above.. is the 70/90 just a general good rule to follow to be safe?

Bad link there. I was at a different website and it directed to Section 523. That's the Old Law wording of Sec 523.

New Law:

# 5. Scope of Discharge

Debts owed to a single creditor totaling more than $500 for luxury goods incurred within 90 days of filing are presumed nondischargeable; cash advances of $750 within 70 days are similarly treated.

http://abiworld.net/bankbill/changes.html

I didn't have time to find it at Thomas or Cornell for you.

That's when the burden of proof shifts. The more distance, timewise, you put between your CC uses and your actual filing the better.

[jbr12]

Thanks, I appreciate the help!

[spongenotbob]

Many Store Cards have a Purchase Money Security Interest. It's either stated in the fine print of the application, or listed in the Terms of Service agreement. Many times, buyers accept the Terms of Service when the buyer makes the first purchase and charges something on the card.

I really question the validity of their 'security interest' since I am sure they never perfected the lien -> therefore is there a lien?

Just killin' time...

Good luck keeping the railings and the house-shaped paint =) =)

[aa06a47]

What is the general rule as far as last sizeable purchases before filing for bk. For exampe, my fiance and I just got iPods on my Best Buy Card 3 weeks ago... Last week I lost my job and have very little luck finding anything that would even come close to paying the bills. I am considering ch 7 bk now. Do I need to basically wait 8 weeks or so from those iPod purchases to keep things from being fishy?

I'm not a judge or an attorney, but your circumstances are a bit different. You lost your job and cannot pay your bills. At the time of the purchase, you were gainfully employeed, it would probably be ruled as dischargable debt. With that said, the cost to defend it would probably be more than the ipods cost. I would wait at least 90 days to file. Keep your house or rent / car /utilities / ect paid. The credit cards will start pestering you via telephone calls, but you'll make it 90 days before they try some court actions. Hang in there and try and find another job! Good luck to you.