More Chapter 7 Questions

[roger_221]

First of all, thanks to everyone for your input. The butterflies in the stomach aren't quite as bad knowing there are others facing the same thing.

1. Is a transfer from on CC to another considered a purchase or a cash advance? I did one the other day for a lower interest rate thinking I would not have to file but my situation is that I will need to file. So, should I wait 90 days past that date? What is the likelihood a creditor will file an objection? What happens if they do?

2. I'm worried if I wait that my bank will start taking money out of my checking account to pay for past due CC's under the same bank name. How long would it take them to do this?

3. I have a high income but also high, reasonable expenses. My atty said I could file a Ch 7 (but issue #1 and #2 above worry me if I wait) but it may be objected to because of my income. He also said I could file a Ch 13. My total assets right now are about $8700 that are non-exempt. So, I could pay that off over 3-5 years. However, I could pay a few more bills to lower that amount because I believe it is based in what you have when you file. However, I'm not looking forward to more 5 years of this.

My atty has given me a little info but I want as much info as I can get. What would you do - a 7 or 13?

[lrprn]

1. Is a transfer from on CC to another considered a purchase or a cash advance? I did one the other day for a lower interest rate thinking I would not have to file but my situation is that I will need to file. So, should I wait 90 days past that date? What is the likelihood a creditor will file an objection? What happens if they do?

A transfer is a charge. Depending on how much you transferred, even waiting 90 days may not be enough. No one can predict whether a creditor will object. What waiting 90 days does is shift proving you filed not intending to defraud from you to your trustee. If a creditor objects, then a lot depends on whether they have a legal leg to stand on and can prove you intended to defraud by charging knowing you were going to file bankruptcy to wipe it out.

2. I'm worried if I wait that my bank will start taking money out of my checking account to pay for past due CC's under the same bank name. How long would it take them to do this?

Don't wait - go open a new checking account at another bank. Do it today! Cross-collaterization (the right to take money owed from another account held by the creditor) is common in credit card agreements. If they take the money from your account, getting it back is impossible.

3. I have a high income but also high, reasonable expenses. My atty said I could file a Ch 7 (but issue #1 and #2 above worry me if I wait) but it may be objected to because of my income. He also said I could file a Ch 13. My total assets right now are about $8700 that are non-exempt. So, I could pay that off over 3-5 years. However, I could pay a few more bills to lower that amount because I believe it is based in what you have when you file. However, I'm not looking forward to more 5 years of this.

I'm not understanding why you think you need to file. Can you share a little more about your situation?

What would you do - a 7 or 13?

It's how you come out on the required Means Test that decides which chapter you can file. Has your lawyer run the Means Test yet?

[roger_221]

Yes, I qualify based on the means test.

[Logan]

I transfered a balance of $7500 from one card to another and filed 63 days later. From my research and from my attorney 60 days was a big number. 90 could be better. I also kept the statements so that I could show the transfer because it is possible that they can go after the transfered amount from the creditor that was credited the balance.

Honestly, I could never get a consistent answer from anyone and my attorney said the trustee won't care because it would just mean more work for him.
I'll know more soon.

[CATCHMEIFYOUCAN]

I transferred $10,000 from one cc to another at the very end of MARCH 06 and wiped out that limit in mid APRIL 06. I filed BK13 end of JULY 06. The credit union I got the cc from specifically stated that the transfer was considered a cash advance. End result: DISCHARGED as of January 07

Good Luck, CMIYC

[JollyGG]

I did a balance transfer of $3000 about a month before filing. The credit card that I took the balance transfer from threatened to object but never did. The trustee went after the amount off the balance transfer and got it back from the card I transfered to so my case is now an asset case. However, none of that really effects me. I'm discharged now and just letting the trustee do her thing.

[JRScott]

Before you file....take your money out of that checking account.....go put it in another bank that you do not have a CC or other debt with (failure to do this means that when you file they can seize what's in your checking account.

I would try to wait at least 60 to 90 days on the transfer if you can.

As for number three I'm misunderstanding, how much debt do you have?

If you have more than 100 dollars left after doing the expenses to income they can force you into a Chapter 13....but I'm not sure on 3 what you are asking.