How many months should one wait AFTER large cash advances or purchases before filing?

[storesstores]

How many months should one wait AFTER large cash advances or purchases before filing BK?

I have heard 6 months and I also heard 12 months...

A few months ago I had to fund my business with Credit card monies (needed cash flow asap)

I am in WAY over my head now.

I want to keep the business (S Corporation) but the credit card monies that the business owes to it are sinking me fast.

Any thoughts or advice?

[SinkingFast]

Our last 3-4 months of charges/cash advances were living expenses. Purchase of groceries, gas, scripts, etc. Use a convenience check to pay a bill or another CC payment. Nothing really big. Our last larger CC purchase was over a year prior to filing.

After we quit using CC's and went total cash, it was 10 months before we filed BK. So 6 months at the very least. A year or more is better.

But there's also been 1 Member post here who filed under New Law where one of their CC's came back on them for the full balance owed on the acct. Last charge was 5 months prior to filing.

A lot depends on how aggressive the Creditor is. How much you owe. Did the balances trickle up over a period of time or explode all at once. Lots of factors come into play.

In your case, I'd suggest you dig out every receipt and CC statement you can find. If you've been trashing or shredding your CC statements, start saving them. Be sure to hang onto them. Unsecured debt in excess of $100K tends to be a red flag trigger for the UST's office. You may be asked to show all CC statements for the previous 6 months to a year.

[Spartan]

I could be wrong, but....

If you file, the S corporation, if it has assets or profitable, will be seized......

Have you talked to an attorney yet? Yours is a rather complicated case. I would make sure I get an attorney who is experienced in both business and consumer bankrutcy.

Don't try to go it alone. It is not worth the risk. With a business involved and huge debt, I would say the chance of something becoming more than you can handle is extremely high. Better to start out right, than to try to fix it later on when things blow up.

[CATCHMEIFYOUCAN]

WHO KNOWS ! Depending on how you look at this I guess I only waited 2 months since my original filing Ch13 in JULY and had the 341 meeting in AUG than when I converted to Ch7 you figure another 6 months went by with another 341 meeting (did the clock start over?)
When I look back on all this my thoughts are "the creditors were tricked," into thinking I was going to be in a "Wage Earner Plan," (as thats what shows on the credit reports) when I filed for Ch13 for quiet some time - so I was put on their "back burner," I guess they have bigger fish to fry. My lawyer told me THERE ARE NO OBJECTIONS in Ch13 because you are paying them back SOMETHING if not 100% of your debt. They can file an objection but usually it gets thrown out.

Now everyones case is different. I'm just going to say I FEEL VERY LUCKY!

APRIL: $6000 cash advance (went Gambling in Atlantic City)

MAY: $500 cash advance (went Gambling somewhere)
2 months between my advances and filing

1st month btw cash advances and filing:
JUNE: Contemplating Debt Mgmt program or File BK

2nd month btw cash advances and filing
JULY: filed for Ch13

3rd month:
AUG: Ch13 341 meeting

4th month:
SEPT: Objection to confirmation ONLY by the Trustee not one creditor Objection

5th month:
OCT: Meeting with the BK Judge to confirm a plan, DENIED had 15 days to submit another plan. Ended up quitting ONE job and was able to convert to Ch7 and owe nothing

6th month:
NOV: Ch7 341 meeting

7th month:
DEC: 60 days Waiting and waiting and hoping no Objections (hmmm, with the hustle and bustle of Christmas and New Years maybe my case is the least on their minds!)

8th month:
JAN 8th, 2007 Last Day for any Creditors to Object
Jan 26th: DISCHARGED but case remains open due to UNKNOWN Assets. Guess they think I'm getting a Tax Refund??? NOT !

BEST OF LUCK, CATCHMEIFYOUCAN