When to file?

[Mynameis]

So, am I getting this right. Should I wait 90 days from the date of my last credit card charge to file for bankruptcy or is it okay to contact a lawyer and atleast get the process started before then?
I actually made an uh-oh and made a charge on one of my cards last night...

[jal1129]

You can go ahead and consult with an attorney (or 2-3) at anytime and they will advise you on if you should wait to file. But if you are going to file bk you MUST stop living on cc and learn to live on cash only.

[Mynameis]

You can go ahead and consult with an attorney (or 2-3) at anytime and they will advise you on if you should wait to file. But if you are going to file bk you MUST stop living on cc and learn to live on cash only.

Okay. I think I will cut them all up.
I don't know what got into me last night. Most of the credit cards are current but b/c the balances are so high I'm basically just paying finance charges every month. It's pointless, theres always 3 or 4 that we can't afford to pay anything to.

These credit card companys have already got their money back pretty much, its the interest and fees that accumulate to the point of burying you in debt.
So really...they are the ones stealing from us...not the other way around like that wikepedia post said!

[loonzilla]

Charging within the 90 day period doesn't stop the bankruptcy process, it just gives the creditors more incentive to object. From what i've learned from the boards, if it wasn't for a luxery item (such as groceries, medical) and over the allowable abuse amount, then it probably won't be objected to.

[Mynameis]

Oh okay. Well that card I used is not a huge worry. I haven't used my cc's w/ HUGE balances, most are up to 32% interest!!!

Now how does it work if one creditor objects, even a smaller one with not a lot of late payments made and pretty good history? Does this throw off the whole BK or no?

Also, what about spending cash on things? Do they need receipts or anything? And what if we have sold assets that were bought (with either credit or cash) over the last 8 months and then used the money for living and such w/ no receipts?

And...speaking of assets...do they come look through your house for stuff or just ask you?
I just want to be prepared for anything they throw at us, ya know.

Thanks!

[lrprn]

Now how does it work if one creditor objects, even a smaller one with not a lot of late payments made and pretty good history? Does this throw off the whole BK or no?

Your lawyer handles each objection depending on what the reason for the objection is. Until the objection is resolved or dismissed, a Ch 7 bk case remains open and a Ch 13 case remains unconfirmed.

Also, what about spending cash on things? Do they need receipts or anything?

Depends on how much cash and what the cash was spent on. Personally we kept all receipts once we knew for sure we knew we would be filing, but no one ever asked for them.

And what if we have sold assets that were bought (with either credit or cash) over the last 8 months and then used the money for living and such w/ no receipts?

Again depends on what assets were sold, how much cash was generated, what you spent the cash on, and how close the assets were sold to your filing date.

And...speaking of assets...do they come look through your house for stuff or just ask you?

99.9% of the time, they just ask you. Only if the trustee suspects that you are hiding very valuable assets would the sheriff come a'knockin' with a warrant from the court to search your home. I would take this one off your worry list