Is this "wrong" ?

[Duncan]

My situation is that I know for a fact, 100% that I will have to file BK at some point in the future. What I don't know is exactly when that will be. I have stopped using my CC's. I am in the process of running out my last few month's payments to get beyond the 90 day last charges point. Some of my cards that had their last transaction as a LARGE BT I am trying to have at least 6 months of payments beyond that date....

Anyway, When I get to the point where I've ceased payments on all CC's, how is it viewed if I were to simply wait until forced (ie sued) to file? Would a trustee ask me why if I was obviously BK, I wouldn't have filed BK once I stopped paying? Would they want an explanation of the time delay. If possible, I'd like to have a few months time to save a few pennies here and there - would that be considered wrong? My POV is that it's simply a strategic move to best position myself for what I know to be coming.

Also, 2nd question - Say I have some large BT's in early 2008 that I'm semi-concerned that a CC will file an adversary proceeding over....If I've paid 6 months min payments since (or more), and then there's no payments and obv no other activity for another 6 months, would the fact that that large BT occured 12 months or more in the past give me a better chance of NOT being challenged?

[StartingOver08]

Yes you have a better chance of not getting challenged if you have lots of time between your balance transfers and the BK filing. You indicated that they are large transfers, can you tell us a little about your situation?

[Duncan]

I sure can!

I started this thread http://www.bkforum.com/showthread.php?t=33058

Here's a copy,

Some of the threads I've read recently mention "adversarial proceedings" and it's created extra worry in my brain...

I was wondering if anyone who has experienced "adversarial proceedings" could post their cliffnotes.

My situation is as follows:

I am planning on filing Ch13 later this year, I'm currently finishing making minimum monthly payments to get beyond the "90 day last transaction" period. I plan on trying to go at least a few months beyond without making ANY payments before having to file, depending on how aggressive my debt is pursued, the vast bulk of which (100k) is unsecured, most of which was originally racked up thru BT's of various sizes... The last few years were simply the BT shuffle, meaning one BT would be submitted to payoff a 0% card that I would be losing the interest rate on, etc... Most of the BT's were simply deposited into my checking account, NOT payments made frome one creditor to the next. I didn't run into trouble until the last few months of 2008, as the CC companies started eliminating their 0% offers, tightened up their approval process, etc

Am I going to have to show where the money went? Some of the accounts aren't even open anymore and I wouldn't even know where to begin looking. I thought that if my last BT's were well in the past, early 2008 were the last ones, and I was making my payments since then, I would be OK.

I've read here that bank records and CC statements as far back as a year are sometimes requested and examined...If it's been about a year since the last big BT and I made at least a few monthly payments after that, and I went a few months beyond that (not paying) - then we're talking 18 months beyond when I do file....

Also, the current distribution of my 100k CC debt has about 50k to one lender (3 cards), with the rest distributed in much smaller amounts through other CC. I believe that the phonecalls won't bother me too much, but how quickly after I stop paying will the CC with the 50k owed really come after me? In terms of suing me. In reading the threads here, it seems some people have gone quite some time without paying. How have other people who owed 50K or more to one lender fared when they've stopped paying??

I guess I'm looking for reassurance thru your "been there, done that" stories that my situation will either (a) not draw any special focus, or (b) will not require me to illustrate dollar by dollar what I did with the 100k in CC debt I've managed to accumulate.

Thanks for sharing, and for taking the time to read this. I've learned alot here from reading past threads and everyone seems to be so supportive of each other through this rough process.

[StartingOver08]

I do not know Ch 13's - as I filed and was discharged (last week yea!) a CH 7.

Having said that, it seems to me you are on the right track by having stopped your charging and balance transfers - and making some payments to show intent.

I don't think the Trustee will ask you about why you waited so long - your Trustee will ask the normal questions looking for assets. The Trustee doesn't really care about your schedule for BK except in how it results in $$ for the Trustee and the creditors. You probably will have to provide bank statements of at least a year and credit card statements of at least 2 years, 4 yrs tax returns etc. On the bigger cases the Trustee's want to review your financial history for a longer period just to see if you have socked away $$ anywhere in any type of asset. (That was how it was for me, but I was a 7 and not a 13)

Because you are filing a CH 13, your plan becomes extremely important. JustBroke and many of the others have experience in coming up with a valid plan that benefits you.

[Keebler]

My situation is that I know for a fact, 100% that I will have to file BK at some point in the future. What I don't know is exactly when that will be. I have stopped using my CC's. I am in the process of running out my last few month's payments to get beyond the 90 day last charges point. Some of my cards that had their last transaction as a LARGE BT I am trying to have at least 6 months of payments beyond that date....

Anyway, When I get to the point where I've ceased payments on all CC's, how is it viewed if I were to simply wait until forced (ie sued) to file? Would a trustee ask me why if I was obviously BK, I wouldn't have filed BK once I stopped paying? Would they want an explanation of the time delay. If possible, I'd like to have a few months time to save a few pennies here and there - would that be considered wrong? My POV is that it's simply a strategic move to best position myself for what I know to be coming.

Also, 2nd question - Say I have some large BT's in early 2008 that I'm semi-concerned that a CC will file an adversary proceeding over....If I've paid 6 months min payments since (or more), and then there's no payments and obv no other activity for another 6 months, would the fact that that large BT occured 12 months or more in the past give me a better chance of NOT being challenged?

I basically did exactly as you are thinking and for similar reasons and it worked out perfectly for us. Keep in mind that my district seems to be particularly lazy and virtually nobody gets thrown out unless you don't show up or don't take the stupid classes.

[treehugger1]

I have been stunned how quickly time seems to pass without any significant action. It's hard to know why this is true in my case. Almost all of my credit cards and unsecured acounts were many years old (some I had for over 2 decades.) I was a very good customer. I have NO assets. I'm not married. I rent a place that is furnished (I have no personal property that is not protected by my state exemptions.) As a result, even though I have wages I think the CA's go for the folks with known assets first. Wages and garnishment laws can be slippery slopes for creditors and CA's.

I also think some states make it more dificult for creditors/CAs to get default judgments. For instance in Oregon, you can file a denial against a small claim for about $45.00. This immediately puts you into the mediation system. If the plaintiff does not wish to mediate, then another court date is set up in the future. The travel and time can get spendy for the plaintiff. It costs about $190 to answer a general civil summons here. And, in general your answer sets the stage for mandatory arbitration, if the disputed amount is under $50k. The point is that even when yuo think you are out of time, you can always find a different wrinkle.

You can put considerable time between you and last use of a CC depending upon how ripe you might look to a CA/OC or the ease that you might be sued depending upon whether or not you live in a big metropolitan area or out in the "sticks" of America. But, if they want you bad enough eventually someone will provide you with a summons no matter where you reside.