Cash Advances Prior to Filing

[jblaska]

What happens if the cc comany objects to the cash advance? Say I take out $4,000 in cash advance then 3 months later file...They object, what happens then? Do I pay it ALL back, portion of it, or what?

[SinkingFast]

Hi JB!

I moved your post here into it's own thread. Rather than boot an old discussion on the subject, I thought it would be good to start a new thread.

Most likely, the Creditor will not Object right off the bat. Generally, Creditors contact your attny first. Creditors will threaten to Object if you don't pay. Then it's between the Creditor and your attny to hash it out.

If you, via your attny, do not come to an agreement that's satisfactory to the Creditor, generally that's when a Creditor will Object.

Keep in mind,.............. If the Cash Advances are over 70 days old, 90 days for charges, the burden of proof that you knew you could not repay when you took the cash or charged falls squarely on the Creditor.

[HHM]

However, taking a cash advance without any intent of paying it back, is, of course, text book fraud.

Given the amount involved, you can probably expect the creditor to object if you do not reaffirm the debt, if you file anytime within 6 months of getting the cash advance. If you file outside 6 months, the likelihood of an objection decreases.

However, you can usually reach a settlement if you reaffirm, i.e. payback anywhere from 50-75% of what is owed, and make payments. The main thing you need to avoid is filing BK within 70 days of taking the cash advance.

[jblaska]

thank you so much for that advice. That is what I wanted to do; take the advance because I do need the money to help pay day to day expenses but I will not in any way try to defraud anyone. Do creditors even take into consideration that my score has been over 700 for almost 5 when they look at my bk?

The reaffirmation is what I would ideally LOVE to do with at least one CC. It is an almost absolute must that I keep one open just for the sake of my business.

[HHM]

On a side note...if you are considering filing BK, you really need to get your spending under control. You cannot go into a BK and not be able to pay your living expenses with your existing income. Otherwise, your BK becomes pointless. I am sure you have a good reason for needing the money, but you got to get things under control, BEFORE filing your BK.

[SinkingFast]

I am sure you have a good reason for needing the money, but you got to get things under control, BEFORE filing your BK.

We heard the same thing from attnys as we were Consulting around.

We quit making payments while we still had a little money left because we had bills coming we knew we had to pay. Auto insurance premiums, annual life insurance premiums, and such. So our bank balance kept dropping like a rock beyond the money coming in from paychecks.

We mentioned this to a couple of attnys and they said, "If that's really the case, and you cannot live within your means, then filing BK is not gonna fix your problems. You have to learn to live within your means."

The bills we had to pay are things that need to be budgeted for on a monthly basis. We needed to learn to set that money aside to have for when the bills do come.

[jblaska]

Yeah, I had a big talk with the missus and let her know that we need to keep it under control. We have since gone out and started buying food in bulk so we dont need to make the little trips here and there to get things.

After reading the wonderful advice on here, I really dont think I am going to take a cash advance. It would of been nice to have the money but as of right now, I am not behind on anything.

I can just see the end of the road and in a few months I will be broke from paying all these cc bills. Most of it is from my store, but a lot is from years ago. After I file, I dont think I will ever touch more than one or two cc ever again!

[HHM]

If BK is a foregone conclusion, stop making payments on your unsecured debt. You can go quite a few months before collection activity becomes intolerable. By doing so, it will give you a sense of what you can really afford without having to service your debt.