Did I mess up??

[2live]

I have an appt to see an attorney on 12-29 about filing ch 7. Besides 12 retail credit cards, I had a signature loan with my credit union that also has my car note and house note. Well yesterday I paid off the signature loan to the tune of 2047.00 hoping that cross collateralization wouldn't be a problem.

Did I mess up by paying the sig loan off? I mean is that considered preferential payment?? If so what will that mean for my case??

[keepmine]

You'll need to wait 90 days to file.

http://doney.net/bkcode/11usc0547.htm

(4) made--

(A) on or within 90 days before the date of the filing of the petition; or

(B) between ninety days and one year before the date of the filing of the petition, if such creditor at the time of such transfer was an insider; and


and

8) if, in a case filed by an individual debtor whose debts are primarily consumer debts, the aggregate value of all property that constitutes or is affected by such transfer is less than $600

So, since it's over $600, wait over 90 days.

[2live]

Thanks Keepmine, but does it matter if it was paid from my daughters account (also has her money in same credit union)??

[HHM]

Your "daughters" account. Aside from the moral implications of that...

You should still wait the 90 days. Since you have control over your daughters account and paid off one of YOUR creditors, yes, you need to wait.

[2live]

Uhhhhh, NO I don't have control over her account (where did you get that from?). She lives with me and was wanting to do what she could to prevent problems with the other CU accounts in my name so she paid off this note. She has her own money, has her own car also with this CU.

When I see the attorney on the 29th I'll bring this up. I have no problems waiting the 90 days, just wondering what the great minds here had to share.