Recent Debt from balance transfer checks

[inhocknow]

Hello folks. Please help me with this question.
I needed cash so I deposited a large transfer check into my checking account from one of my credit card accounts.
I used all of these funds to pay off monthly bills. I was borrowing from this credit card to meet other payments.
Can the creditor object to this? We are talking about a large sum of money but again, it was only used to pay bills. Thanks for all of your great help.

Oh, by the way, this transaction was done about 2 months ago I believe.

[PaKettle]

The longer you wait before you file the less it will matter. It COULD matter if they creditor objects and can "prove" that you had no real expectation of paying it back. But that is hard to prove. Be sure to bring this up in your consultations with attorneys. How large of a sum of money are we talking about?

Did they send you an invitation that said "do whatever you want with this money - use it to pay off other bills", etc...? The real question is whether or not you had intention of paying it back. Did you make ANY payments on this card?

[inhocknow]

Hello, thanks for the reply. Here is some more info.
I realized I was in big troulble but I was doing everything I can to make ends meet. I used cards for a while to pay others by using transfer checks. Shortly after I used the last check, I told myself that enough is enough. I was unable to take this anymore.
Well anyways, I only used the funds to pay bills, all debts that I am including in bankruptcy as well. The amount was about 19,000.00

The checks for transfer checks that I had for a while. They were blank with no stipulations.
Thanks for your help.

[lrprn]

Well anyways, I only used the funds to pay bills, all debts that I am including in bankruptcy as well. The amount was about 19,000.00.

As Pa explained, with a cash advance this high, you want to wait as long as possible before filing.

Worst case scenario is if the creditor objects and wins, you'll have to pay that $19K back.

Best case scenario is the creditor doesn't object and the $19K is wiped out.

What does your lawyer say about the possibility of snagging a creditor objection for this cash advance so close to filing?

[CATCHMEIFYOUCAN]

Its 50/50 with the cash advances. Looking on my credit report I got a $10,000 credit line in APRIL and wiped out that amount by the end of the month - I had taken 3 $2000 cash advance checks in a casino in a matter of a couple of hours. I filed BK in July (2006 that is). I didn't hear a peep from the creditor. AND, I had only made ONE minimum payment (and not even the full minimum amount at that) before I filed. Most of my $65,000 debt came out of gambling through use of the credit cards (cash advances, etc.), though at one time I had all the credit cards paid off but I kept getting increases and increases and racking it all back up.

Best of Luck, Catchmeifyoucan

[ad_25]

Our lawyer didn't seem concerned which kind of bothered me. He said 60 days should be fine. We recently all together took out about 8k in check advances. All of them were do whatever you want with them....so we paid bills and have been living off them for a while. I am not sure if we'll get objections or not. We haven't filed yet. We are on Dec1st.

[danaf]

if it were me, I'd wait it out until at least past the new 70 day rule if not longer. and i'd question why any lawyer would think 60 days is not a problem. in my mind that is unethical on a lawyers part esp since they know the 70/90 day rule. if he were my lawyer i'd think he was after my money and didn't give a crap about my best interest.

there are good lawyers and not so good lawyers.

i'm sure others will chime in.

(i'm just a member here, not an expert)

[PaKettle]

Hello folks. Please help me with this question.
I needed cash so I deposited a large transfer check into my checking account from one of my credit card accounts.
I used all of these funds to pay off monthly bills. I was borrowing from this credit card to meet other payments.
Can the creditor object to this? We are talking about a large sum of money but again, it was only used to pay bills. Thanks for all of your great help.

Oh, by the way, this transaction was done about 2 months ago I believe.

I'd try to wait the 90 days if you could, that would decrease your chances of objections.

[PaKettle]

Our lawyer didn't seem concerned which kind of bothered me. He said 60 days should be fine. We recently all together took out about 8k in check advances. All of them were do whatever you want with them....so we paid bills and have been living off them for a while. I am not sure if we'll get objections or not. We haven't filed yet. We are on Dec1st.

If you are filing on Dec. 1st, then 60 days back from that would be October 1st. 90 days back from that would be Sept. 1st. If you took out the check advances before Sept. 1 you should be okay then, especially if you made at least one payment; or so I've been told by attorneys.

If the $8k you took out is divided among 2 or 3 cards I would think that is also better than having taken it all on one card.

One thing one attorney told me is that "using the money to live off of" was not a good thing to tell the Trustee or creditors if asked. He said that indicated that you were having trouble making payments and so knew you might not be able to pay it back. That isn't logical to me, you still could believe you were going to pay it back, but that's what he told me. So take that with a grain of salt. If asked I will say that I just spent it, not sure on what, or gambled it, that seems like a better excuse.

[ad_25]

Yeah, funny enough, I've heard it's better if you gambled away every penny and didn't pay, it was better than using it to feed and clothe your children....hmmmm not even sure what to say about that other than, yeah, if they ask me I just might say I gambled it in Vegas....