I am filing BK 7 in about 2 weeks...

[storesstores]

My lawyer is preparing the documents and I should be filing within 2 weeks. I am, going BK 7 on about 20 different creditors.

One in particular scares me.

Its a debt of about $6200 and its from an OVERDRAFT line of credit account. The most recent charge on that account was from 08/29/2007.

Can I choose to NOT include this account in my filing?

Can I ask my father to pay it off for me?

Obviously the overdraft line of credit is linked to one of my checking accounts...The balance in my checking account right now is about $40.

I don't want this one account oto trigger an investigation by the trustees. I had some charges on their that might not be liked much by the trustee.

I'd rather have them not even need to look into this account if I can avoid it.

What are my best bets?

[familyof7]

if some one could pay i off for you that would be okay. If it is a zero balance you wouldnt need to report it. But if it is not paid off before you file you must list it you said it was on 08-29-07 ?

[JollyGG]

My lawyer is preparing the documents and I should be filing within 2 weeks. I am, going BK 7 on about 20 different creditors.

One in particular scares me.

Obviously the overdraft line of credit is linked to one of my checking accounts...The balance in my checking account right now is about $40.

What are my best bets?

Open another checking account at a different bank

I don't want this one account oto trigger an investigation by the trustees. I had some charges on their that might not be liked much by the trustee.

I'd rather have them not even need to look into this account if I can avoid it.

The trustee is unlikely to look over your statements line by line. They really don't care how you got into debt, they just want to know if there are any assets to pay your creditors with or if you have income to fund a chapter13

Can I choose to NOT include this account in my filing?

Can I ask my father to pay it off for me?

You must include all debts when you file you may not pick and choose. Additionally, you are filing bankruptcy to get a fresh start. Don't take on debts you don't have to.

Its a debt of about $6200 and its from an OVERDRAFT line of credit account. The most recent charge on that account was from 08/29/2007.

You'll have to correct the date here. You wrote down a date in the future. If your last large charge was less than 70 days ago (overdraft lines of credit are usually considered cash advance) then you may want to wait to file.

[storesstores]

Open another checking account at a different bank


The trustee is unlikely to look over your statements line by line. They really don't care how you got into debt, they just want to know if there are any assets to pay your creditors with or if you have income to fund a chapter13


You must include all debts when you file you may not pick and choose. Additionally, you are filing bankruptcy to get a fresh start. Don't take on debts you don't have to.


You'll have to correct the date here. You wrote down a date in the future. If your last large charge was less than 70 days ago (overdraft lines of credit are usually considered cash advance) then you may want to wait to file.

I meant to say 07/29/2007...Sorry...

[lrprn]

One in particular scares me.
Its a debt of about $6200 and its from an OVERDRAFT line of credit account. The most recent charge on that account was from 08/29/2007.

We filed Ch 13 in June 06. The last activity we had on our checking account's overdraft LOC account was 30 days before we filed by the bank itself covering our monthly account charge. The last time we deliberately used it was more than 90 days before we filed. We included this account when we filed because it's unsecured. Not a peep from our former bank other than to file a claim for it. (We had opened a new checking account at a different local back months before we filed.)

Can I choose to NOT include this account in my filing?

No. You must include all debt when you file.

Can I ask my father to pay it off for me?

At that amount and since you are well within the 90 days before filing period, the trustee is very likely to see it as a preferred payment and force the bank to give the money back to divide between all your creditors. That's between your bank and the trustee though - it doesn't impact you.

I don't want this one account oto trigger an investigation by the trustees. I had some charges on their that might not be liked much by the trustee.

Are the checks that caused the overdraft charges for luxury items? Something legal or illegal?

Since the charges that forced the overdrafts are so recent, depending on what the charges are for, your bank could file an objection to discharging this debt. If the charges that forced the overdrafts are for something illegal, then all bets are off. Whether your trustee likes them or not will be the least of your worries.

What does your lawyer say about this overdraft account and your very recent use of the account before filing? He/she's your best source of real legal advice in this situation.

[storesstores]

What if my mother paid it off for me today and I file for BK 7 in about 2 more weeks?

I will have a ZERO balance on this account at that point.

Will the $6000 payment still need to be listed on my schedules?

Will the account need to be listed on any of my schedules even though it would havea zero balance?

[lrprn]

Will the account need to be listed on any of my schedules even though it would havea zero balance?

If the amount you owe is zero, then the account does not need to be listed when you file.

Stores, you have a lawyer. What does he/she think of this idea about paying your bank over $6,000 within weeks of filing? You REALLY need to talk to your lawyer before you do this. REALLY, you do!

[SinkingFast]

Personally,........... I wouldn't ask family to bail you out for $6K+ to a Creditor you can Discharge in BK.

What if you have some sort of emergency medical expense for yourself or a dependent at a later date and need help then??!! You would have tapped your "Help" resources to pay a Dischargeable debt and then no one would have the cash to help out later.

[cathywhite4495]

I agree about talking to your lawyer. I'm wondering if you would have to list the account even if it had a zero balance because it's a checking account? I'm not sure about that but I know there was a spot where I had to list any bank accounts that I closed in the past year. Again, I'm not sure but it sounds like it's tricky enough to check into. Besides, if you're paying the big bucks to an attorney, you might as well get your money's worth and get all the advice you can get!

[Lindsay]

I think you have to disclose all payments to creditors made in the prior 90 days. If you asked your mother to pay it off, I think you'd have to wait to file for a few months. But if the debt is dischargeable, why not just include it in the BK? $6000 is alot of money. It would probably be much better to borrow the money from your mother after the BK and help to get back on your feet. We had recent charges on 2 of our 9 credit cards so I probably will wait until Oct to file to avoid any problems. None of the charges were luxury, just grocery, gas, home repair, ect. I heard that if you make charges within the prior 90 days before filing that they can object and make you pay it instead of discharging it.

[JRScott]

The 6000 dollars even if made by someone else would be looked at as a gift by the Trustee. Since it is also in excess of 600 dollars paid to a single creditor in 90 days you'd have to list it on the financial statement portion. The Trustee can and most likely will go and take the 6000 dollars from the bank and distribute it to all your creditors. At this point if you didn't list the bank you still owe them 6000 dollars and now no longer have the 6000 dollars to pay them.

I would not get the money from your mother or your dad to pay the 6000 dollars. Go open a new account at a different bank. Include the first bank nsfs and overdrafts in the bankruptcy.

You should really talk to your lawyer about this though. I'm sure he's going to be against this idea.

[HHM]

Let's clarify one issue. You said the "last use" was July 29, 2007. How much was that particular instance. I am getting the sense you did not incur the entire $6,200 debt in on sitting.

In any event, you are fretting too much. Worse case scenario you have to pay that debt back (probably only some of it). But the debt will in NO WAY affect your overall bankruptcy. The BK Trustee does not care how you got into debt and does not care about individual creditors. The US trustee does not care about individual creditors (per se), the US Trustee is looking for "patterns" of abuse and out-right fraud.

My suggestion would be...let the debt ride in the BK. If the creditor objections, negotiate some type of deal, and only then approach your family to help you pay it off (assuming you still need their help).