Should I make one more payment before filing?

[HHM]

But any cash advance above 600.00 in less than 90 days can raise a red flag. And no it wont delay discharge but it can increase the chance of having to pay that particular debt back. And the objection can delay the the closing. And it can also cause a headache while going through the objection process which no one wants ,you want it as smooth as possible. The best solution to this problem is waiting 90 days from the last transaction.

For purposes of "accuracy" here...the cash advance rule is $750+ within 70 days of filing. (Sec. 523(a)(2)(C)(II)). What you are quoting is the use of credit clause for purchase of luxury items, i.e. $500+ within 90 days of filing. Also, balance transfers are considered "cash advances" for purposes of the BK code. And the TRUSTEE DOES NOT CARE. This is merely an issue between the debtor and the individual creditor.

The 70/90 day rule is what is known as the presumption period. If you have transactions that meet the definitions stated in the code, those transactions are presumed fraudulent and the burden is on the debtor to prove otherwise. Outside of the 70/90 day rule, the burden is on the creditor to prove fraud. Thus, as I said, the amounts (assuming they really are less than $1,000) are too small for a creditor to engage in that litigation. Thus, simply wait at least 71 days from the date you made those balance transfer to file BK, and you should be fine.

[BurgerKingVII]

Take it for what its worth, but I've never met a BK attorney or seen a post from here from a member saying they have gotten advice from an attorney to make "one last payment" once they have decided to file bK.

My BK attorney -- who's considered one of the best BK lawyers in this state -- actually advised me to do that. The one potential issue that we think might arise in my BK7 is a relatively recent cash advance. At the time of my first meeting with her, I'd made one payment, and she suggested that I make one more, which I did.

It was clear, though, that was an exception to her usual advice. She did tell me to stop paying everyone else, which I've done.

[CindyLou]

Then if that is the specific advice of your attorney then I would follow that advice over any advice on this forum. We are not attorney's!! I he has a valid reason and you agree then do it. It still seems crazy to me, but you are paying your attorney to give you advice! I did not notice in your post that your attorney had strongly advised you to do this. I thought you were doing this on your own to look better or feel better. I think that is a first for me, but if he knows his district then I would do what he says!!

[Minnymouth]

Basically your attorney is suggesting that you make another payment while at the same time getting you "past" that 70/90 days period that makes your transactions look fraudulant that HHM was talking about.

By taking out the cash advances, making one payment, then filing bankruptcy it looks DELIBERATE on your part taking out a cash advance or two, knowing you were going to file bankruptcy, and couldn't repay any of it. By attempting to make more payments you are showing "good faith" in repayment.

Whether you pay it or not it's still "wasted money" but by paying it and getting past the 70/90 day period just might keep you from getting your case dismissed. This is what your attorney is looking at....

[BurgerKingVII]

Then if that is the specific advice of your attorney then I would follow that advice over any advice on this forum. We are not attorney's!! I he has a valid reason and you agree then do it. It still seems crazy to me, but you are paying your attorney to give you advice! I did not notice in your post that your attorney had strongly advised you to do this. I thought you were doing this on your own to look better or feel better. I think that is a first for me, but if he knows his district then I would do what he says!!

Just to clarify, I think you've got me confused with the original poster (PaKettle), who indicated that he hasn't asked his attorney about this issue yet.

[CindyLou]

Ok, then my bad. I got confused. My original advice stands to pakettle. Do not pay your cards if you plan to file. Paying while you wait is not different than not paying while you wait except you get a few more anoying call than you other wise would. I just don't ever like to tell people to go against the advice of their attorney and I was thinking that your attorney was pakettle's attorney. Is everyone confused now? Sorry Ok, so now I say don't pay. Like HHM always says. "Don't throw good money after bad." Hope you don't mind me quoting you.

[BurgerKingVII]

By taking out the cash advances, making one payment, then filing bankruptcy it looks DELIBERATE on your part taking out a cash advance or two, knowing you were going to file bankruptcy, and couldn't repay any of it. By attempting to make more payments you are showing "good faith" in repayment.

That's pretty much it. I haven't researched the issue extensively, but there's a case in this circuit where the Court of Appeals found that making monthly payments on newly-acquired CC debt is inconsistent with intent not to repay.

Whether you pay it or not it's still "wasted money" but by paying it and getting past the 70/90 day period just might keep you from getting your case dismissed. This is what your attorney is looking at....

Dismissed? I haven't really researched this issue either, but I've never heard of a BK7 getting dismissed due to CC debt incurred shortly before bankruptcy. What usually happens, if anything, is a complaint objecting to discharge of that particular debt per Section 523.

[PaKettle]

Ok, then my bad. I got confused. My original advice stands to pakettle. Do not pay your cards if you plan to file. Paying while you wait is not different than not paying while you wait except you get a few more anoying call than you other wise would. I just don't ever like to tell people to go against the advice of their attorney and I was thinking that your attorney was pakettle's attorney. Is everyone confused now? Sorry Ok, so now I say don't pay. Like HHM always says. "Don't throw good money after bad." Hope you don't mind me quoting you.

Not my attorney, but another attorney I spoke with before choosing mine (I still haven't officially retained him due to lack of $), was the one who recommended I make at least one payment on the accounts against which I took cash advances (balance transfers) and had not made any payments.

My chosen attorney did say, when I asked him, that "it might not be a bad idea" to make at least some small payment towards those accounts, that it could possibly help me case. And this guy is considered a good bk attorney. I HOPE he is!

[Boscoe]

Mine recommended at least 2 payments, and probably 3 to significantly reduce the possibility of any credit card co objecting. After 6 months, it is doubtful anyone woud object.

[PaKettle]

The two or three accounts I paid after I quit paying the others were ones that I had made transfers or purchases on and had not made one payment, so even though I will wait 3 months before filing, I wanted to reduce the chances of them crying "Fraud!" And my attorney and another I talked to agreed that it wouldnt hurt and might help so I "threw away" a couple hundred dollars towards it. Hopefully it will help things go smoothly at my meeting.

I have not filed yet, am still waiting to gather the dough needed.