top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Credit card as overdraft protection???

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    Credit card as overdraft protection???

    Before everyone piles on and tells me this was stupid to do, let me say I know that already. That's why I'm here asking BK questions. My question is this:

    We have a BOFA checking account and credit card account. Years ago I was told that I could use our card as overdraft protection so checks wouldn't bounce. I know you can use your savings account as well, but at the time I was using an internet based company for a savings account to get a better interest rate. During the last year we've had to write checks to pay bills knowing the only way they were going to be paid was the overdraft protection which automatically transefers money from our credit card to our checking account. I always have planned on paying them back and never thought I'd be here about to file BK.

    Will those transfers be looked at exactly the same way any other cash advances would? I never got any money in my hand, it just went directly into our checking account to cover checks we wrote (and all of these checks were for bills). Would these be looked at any less negatively or all cash advances the same?

    Thanks.

    #2
    A little more info...

    The amounts were $2400 each month for the last two months. I can't check back before that without ordering the statements thru the mail, but they weren't nearly that much.

    Comment


      #3
      Just my 2 cents:

      When I got a $10,000 credit card in march or april and the transferred the full $10,000 to pay off my other credit card, the credit company stated it would consider the transfer a cash advance! So I'm thinking yeah, anytime the creditor gives you money - whether its a transfer or "back up draft," its and advance, why don't you call them up and ask?

      Best Wishes, Catchmeifyoucan
      July 2006: Filed Ch13 :blink:
      Oct 2006: Converted to Ch7 :clapping:
      Jan 2007: DISCHARGED :clapping:
      Nov 2007: CLOSED :yahoo::yahoo::yahoo:

      Comment


        #4
        Originally posted by HelpMeFast! View Post
        We have a BOFA checking account and credit card account. Years ago I was told that I could use our card as overdraft protection so checks wouldn't bounce. ... Will those transfers be looked at exactly the same way any other cash advances would?
        I'm thinking that these exchanges may well be looked at like a cash advance. However, this is a good question for an experienced bankruptcy lawyer in your area. Have you talked with one yet?
        I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

        06/01/06 - Filed Ch 13
        06/28/06 - 341 Meeting
        07/18/06 - Confirmation Hearing - not confirmed, 3 objections
        10/05/06 - Hearing to resolve 2 trustee objections
        01/24/07 - Judge dismisses mortgage company objection
        09/27/07 - Confirmed at last!
        06/10/11 - Trustee confirms all payments made
        08/10/11 - DISCHARGED !

        10/02/11 - CASE CLOSED
        Countdown: 60 months paid, 0 months to go

        Comment


          #5
          Yeah it would be best to wait 3 months before filing. Otherwise the creditor may object and obtain a right to collect the money back from you.

          Comment


            #6
            We had the same set-up through Wells Fargo. We mismannaged it the exact same way you did. So don't beat yourself up too bad. And yes they do consider it the same as cash advances.
            Filed: 10/26/2006
            Discharged: 03/05/2007
            Closed: 5/19/2008 - Asset case due to balance transfer and income tax refund

            Comment

            bottom Ad Widget

            Collapse
            Working...
            X