New FAQ on Creditor Objections!

[edwinhil]

First of all, any settlement has to show that you have assets. If your doing a chap 7, you don't have assets. Any attorney worth anything will advise his clients not to reaffirm on anything, that means anything. Once you reaffirm or reach some other agreement, then you show you have some extra cash. Now you bring into question rather or not you qualify for a chap 7, and may get thrown into a chap 13. I know a couple people that ran up 30k and more on their credit cards before filing chap 7. If there is a challenge, the excuse of robbing peter to pay paul is a good one. Another good one is "lost it at the casino". Those are uncollectable. If on the other hand someone who just went on a shopping spree, then it is possible they may have to turn over what they bought, but that's as far as it will go, and then only if the trustee sees fit to do it and the items can be sold easily to raise cash. It all gets thrown back on the credit issuer since they should have stopped or froze the account before it got that far out of hand. They too have responsibilities, and trustees hold them to their rules very tight. One fella I know took a 10k advance to pay on a line of credit 30 days before filing chap 7. The trustee grabbed back the 10k and distributed it evenly to all creditors. Total cost of doing this was over 6k, lawyers, trustee, and courts. Leaving only 4k to go to all creditors. If you lost it gambling or partying, there is nothing to go after. Doesn't look very good, but honestly not much that can be done.

[edwinhil]

oh, I forgot. The suggestion that jb4lcm gave about waiting 90 days is excellent!! That way there is absolutely no question and if someone does object you can throw it right back to them, "why didn't the creditor stopped the credit before it got bad?"

[spearmint]

testing

[KevFinnerty]

Thanks for this thread and the FAQs.

I didn't know any of this & was scared to death when I first read about the charge card usage etc but maybe it is not as bad as I think after reading this thread.

I did a balance transfer to stay afloat when my income dried up about 4 months ago and I cannot pay the mininum on that card anymore. I have another card that I continue to use though, because otherwise I would not be able to buy food/medicine. I am worried about this but not as much as when I first saw the FAQ about this stuff.

[edwinhil]

Once you file all of your credit will be frozen almost immediately. It all goes over the internet now and happens very quick. As long as your using the card to keep afloat I don't think you have to worry. That is really the normal thing, every bankruptcy has that same problem. You have to get a way to take care of the necessities after you file though cause that card will in all probability be canceled within 48 hours.

[KevFinnerty]

You have to get a way to take care of the necessities after you file though cause that card will in all probability be canceled within 48 hours.

Thanks, that is important, something that makes 100% sense, but I didn't think of it. I need find a way to stockpile some cash to live on I guess, take a job at minimum wage, anything....

[edwinhil]

That's exactly what I had to do too. It's tough and you really have to discipline yourself. Watch every penny, and consider a trip out to Mcdonald's or burger king a luxury. Cut out the cable tv, turn off lights, try to not run the air as much. Your not in this alone, there are literally millions in the same boat. Hopefully things will start getting better soon.

[KevFinnerty]

Thanks. Stopping the cable TV is something I forgot - that's $60 a month right there. I need to do that.

Believe me, I haven't been eating royally, I've been really skimping on eating (no appetite anyway), lost 15 pounds in last 2 months and I was already pretty skinny....soon I will be down under 130 lbs, pants won't stay up without belt anymore. Guess this is known as a pre-bankruptcy diet.

[highonthehog]

3/24/2011

Ok, now this thread has got me wondering/worrying, To Wit: my trade is construction and have been out of work since June 2010. Since mid 2007, held multiple CC debts totalling aprox $22K and was making well over the min payments in an effort to pay them off. By mid 2008 the CC companies doubled the interest on all my cards while they screamed for their bailouts. At that time, realizing I was one of the lucky few to still be gainfully employed, I stopped paying over min CC payments and began stashing cash back for the inevitable end of project and final layoff.

Since I'd known of so many other guys, some of whom had been out of work for a year or more, going down the BK road, I figured by saving 1 years worth of living expenses I could weather the storm. Aside from using the C-Cards a bit more than I should, Plan A worked pretty well for a while... but I really didn't have an effective plan B other than just waiting and hoping for some of the big projects to finally break. My Plan C was at the time considered un-thinkable--- if I don't get any work, if money runs out--- just file for BK like everybody else.

So here I am almost a year later with savings down to the last $1500 and all my cards maxed out to over $30K. This looks like the end of the line for the CC cards and BK road for me. Have not missed any payments at all since my layoff in June '10 and have NOT filed for BK yet. Unempolyment currently pays the rent and utils with a few bucks left over for food.

So what's my worry? Looking for a way to make some cash on the side I bought a pick up truck for $2400 around July last year on C-card. And to augment that--- in Dec last year I bought 2 trailers for aprox $1000, also on the C-card. They haven't produced the cash I thought they would and in fact, they've cost me money.

Question: what is the likelyhood that either of these purchases will raise objections by the C-card companies to discharge these debts? Other than that, charges compiled on the C-Cards over tha last year are the usual run of the mill stuff, no lavish vacations, no jewelry, etc., nothing that could not be justified for my work or potential ability to make money. But after reading this thread it's given me sleepless nights bigtime. I have NOT talked to BK atty or stopped paying C-C's YET, although I can hardly pay them another month unless I begin selling some other assets.

Apologies this post being is so long. Any comments would be greatly apprecited.

[arthoralbert]

Over one and a half million Americans file for bankruptcy each year and so do thousands of businesses. Debt Reduction is the best alternative to filing and avoiding bankruptcy.

[AlexShohet]

Hi I could use some help. My current BK atty does not know the answer. My former business partner fraudulently stole the assets to my company. I had to file personal bk chapter 7 in November of 2010. My former partner's atty helped objected to our bk and filed a 727. We had our trial in Jan of 2014. His 727 was denied. My problem is this. I would like to refi my home mortgage. They want 4 years since the BK was "discharged". Since we won on the 727 in Jan of 2014 that was the date of the discharge. Since the 727 was filed in my humble opinion to increase my legal fees and delay my BK, may I ask the court to move the discharge date back to what it would have been? Thank you for any help or support.