Question about Cash Adanvance..

[whywhywhy]

[BurgerKingVII]

I'd strongly suggest talking to a BK attorney for an opinion on this before you do anything with the money. One possibility is that he/she will advise you to pay it back to the CC company in the hopes it will reduce the chances of an adversary action to challenge discharge of the debt. The idea is that paying back the remaining $9K shows good faith and a lack of fraudulent intent, and a lower balance reduces the chances that the CC company will go to the trouble of filing an adversary action. Again, though, you should definitely get an opinion (or two, or three) from an experienced BK lawyer(s).

[familyof7]

pay some back pay some living expenses and pay for an attorney

[familyof7]

Or you could give it to charity.... I am in need send it to me lol just kidding

[CityGirl]

Wait 2 months and then file if you keep it, but if you do, don't pay credit cards with it. Use it for living expenses and an attorney.

[danaf]

From what I've learned on this site, good faith doesn't seem to matter. There is a 70/90 day rule. Beyond that, as much time as you can put inbetween taking this cash advance and filing, the better off you will be.

Without knowing your circumstances, or what interest rate you took this cash advance out on - what I might do is withdrawl the entire amount from the bank, use it to pay your montly cc charges for about 3-4 mos, wait 6 mos if possible, and then file.

I have no idea....just a suggestion. But if you wait 6+ mos, then this money won't show on your bank statements if the trustee asks to see them.

Honestly, these cc companies don't loose much by debtors filing bk. They just write it off. So I wouldn't stress so much....just do your research and plan. And don't take out any more cash advances, don't do any balance transfers, and start living on a cash basis.

[familyof7]

From what I've learned on this site, good faith doesn't seem to matter. There is a 70/90 day rule. Beyond that, as much time as you can put inbetween taking this cash advance and filing, the better off you will be.

Without knowing your circumstances, or what interest rate you took this cash advance out on - what I might do is withdrawl the entire amount from the bank, use it to pay your montly cc charges for about 3-4 mos, wait 6 mos if possible, and then file.

I have no idea....just a suggestion. But if you wait 6+ mos, then this money won't show on your bank statements if the trustee asks to see them.

Honestly, these cc companies don't loose much by debtors filing bk. They just write it off. So I wouldn't stress so much....just do your research and plan. And don't take out any more cash advances, don't do any balance transfers, and start living on a cash basis.

I AGREE!!

[whywhywhy]

Thanks for the feedback..

I called an atty to set something up. I have never been more stressed out in my life. My divorce was easier. My truck is about to get repo'd, but I have a beater car so I really don't care. All my previous work experience is in retail banking, which makes this that much harder. I got divorced about a year ago and decided it would be a good time to try a career in real estate too, then my ex-wife filed chpt 7, lots of fun joint stuff, then I got sick with no insurance, and you can probably figure out the rest...I was going to use this money for my rent for the year, so now I am worried on how I will pay that if something happens. I also own a condo, which I have no desire to have, I just can't sell it in today's market because it is only 2 years old, and the person renting it decided to stop paying rent...I have one collector that calls about 7 times a day and calls 3 times each time they call, its rather annoying. My head just wants to explode and I want to crawl into a hole and die.

[SinkingFast]

I'd strongly suggest talking to a BK attorney for an opinion on this before you do anything with the money. One possibility is that he/she will advise you to pay it back to the CC company in the hopes it will reduce the chances of an adversary action to challenge discharge of the debt. The idea is that paying back the remaining $9K shows good faith and a lack of fraudulent intent, and a lower balance reduces the chances that the CC company will go to the trouble of filing an adversary action. Again, though, you should definitely get an opinion (or two, or three) from an experienced BK lawyer(s).

I agree with this suggestion.

The easy thing to do is to pay an attny, your filing fee, get your Cert, and live off the remainder of the money for as long as it lasts. But I've seen people tagged by Creditors for less cause.

One Member had no charges for 5 months. No large cash advances on the CC. Just routine living expenses for a couple of years. LOC was $15K and the CC threatened an Objection against him. That Member wound up Settling with the CC.

A huge Cash Advance like yours throws up all kinds of red flags. Definitely chat with 3-4 experienced BK attnys in your area. Get their take on what you should do.

[whywhywhy]

Sigh. I can't believe I let it get this bad.

[lrprn]

Sigh. I can't believe I let it get this bad.

You are right where most of us here have been at some point, WWW. You're at the worst stage....realizing how deep the financial hole truly is. However, there's a bright side...you are doing something about it! Head is out of the sand and you are making plans. That deserves a huge thumbs-up - way to go! Hang in there - sunnier skies are just ahead once you file. Until then , come on in and sit awhile with us

[whywhywhy]

I love this place already. I'm going to get in trouble reading too much.

Just a side comment... I come from a bank, which I doubt I will ever work for one again - they scare me now. I don't think people realize how big and greedy most of these places are. I read all the stuff about sub-prime mortgages - most of these "fly-by-night" companies that you hear about on the news are backed by a large bank. This credit counseling course that I have to take? I know that some of them on the list I was given are owned/backed by the bank I used to work for. Watch the documentary “Maxed Out” if you want to throw up…

Bottom line, I will never work for one again because they treat people like crap, like they are disposable, and not human beings.

[danaf]

Wow, with an LOC of only 15k - I don't even think I'd file. I owe more than my yearly salary. Why would someone settle with a cc company if they did everything they could to turn things around and if they stopped using all credit? I'm curious what that person's circumstances were and what he was afraid of. Is it that easy for creditors to win in court?

Anyway, Why - come back and let us know what kind of advice your attorney gives you.

[JRScott]

Alright

How much is your total debt?

How long has it been since you paid on the debt?

Regarding the Cash Advance:

You need to put as much time between you and this as is possible. I would strongly recommend at least 6 months. You absolutely need at least 3 months though I think.

Regarding the 9000 dollars:

Well even if you paid this back to the credit card company, the Trustee will go back at this point and take it from them making you an asset case and then redistribute it to all of your creditors.

Things you might consider using it for would be to pay off some of the medical bills, or perhaps use it to look for another place to live as it seems you will lose the condo.

Whatever you do make sure to start keeping receipts for everything. It is best if these receipts show that you used the money for normal living expenses (including medical and vehicle repairs) than anything else.

I would recommend withdrawing most of all of this money. Just in case anyone attempts a judgment before you can file.

Phone calls:

We all hate this part of the process. It is the most annoying.

I would suggest buying an answering machine. Make a clear and concise message that clearly identifies yourself so that they know they reached the right number.

Turn down the volume on the ringer such that you can't hear it. If someone you want to talk to calls and leaves a message you can call them back. The other folks you ignore.

It is also good to get caller ID, and then get the service to block the calls from those that don't ID themselves.

Paying of Bills:

You realize your in deep. Having made the decision that you need to file bankruptcy at this point its pretty much throwing money away paying any non secured credit bills. Stop paying them. Make sure to still pay your mortgage/rent, utilities, food, gasoline, car, etc. Keep receipts for everything in case it comes up later in the proceedings and to prove expenses.

Given the advance was in July the earliest I would file if I was you would be in January of next year. You want to put as much distance from that cash advance as possible. Now this is just my gut feeling.

I would highly recommend going and speaking to 3-4 bankruptcy attorneys in your area. You can ask them questions about what you should do and they may well advice you as I have or may have other ideas. Most offer a free consultation on the first visit.

Good Luck to you. Know that you are not alone

[CindyLou]

You mentioned paying your rent for the year. Hopefully you mean one month at the time. You cannot pre-pay a monthly recurring bill before or during bk. The trustee will look at that as trying to hide the money. you could however do things like go to the dentist, doctor, other health related necessities are hard to question and KEEP KEEP KEEP RECEIPTS.