Why we are planning a Chap 7 some questions please-thanks

[BankruptPinoy]

Hi everyone. Happy Sunday.

May I please ask some questions about a future Chapter 7?

First of all, my husband got sick while visiting in the Philippines last November, and the event and our lack of emergency funds and planning led us to realize we need to change our ways of living.

I had to send via our credit card a total of $8360 to my father in law to pay the hospital bill for my husband. The charge is not listed as a cash advance, so that's good as far as the interest. On the credit card statement, it reads "Western Union Call Cash 1-800-***-**** " $8360.

I've been searching the posts, and a general piece of advice seems to be to visit 3-4 attorneys for a free consultation.

Well, that leads to a question. An attorney that is close to our apartment is also a trustee for our district here in Georgia.

Should we visit an attorney who is also a trustee?

Would you recommend hiring a attorney who is also a trustee?

(We've been thinking of pro-se, as we are a no-asset case, and seems to be easy, but after talking with Minny, we are realizing that there is more to filing even an "easy" Chapter 7)

So, as to the charge for Western Union, we plan on waiting until at least July 2008 which will be over 6 months since the $8360 charge.

We would like to get this bankruptcy stuff over with, but also, we have read of the advice to wait as long as possible. So, do you guys think a July 2008 filing would be ok especially in regard to the Western Union? Will it look like some kind of fraud? That's why we are afraid to visit the attorney who is a trustee, because it seems like the new bankruptcy law presumes fraud.

Also, we are making payments to a company, CareCredit (GE Money), of $120 a month for lasik eye surgery. The financing is through a company the doctor's office uses.

Basically, we have about $25,000 in credit card debts. No real assets, as our car is a 1999 Honda Accord valued at less than $3500. No jewelry, only some books really.

Really, that Western Union charge is the only thing worrying us at this time. The other charges are small, either medical, or living expenses.

Can someone please give us your thoughts? Thank you in advance for your time.

[arkienurse]

As far as having an attorney who is also a trustee, yes! Yes!. They will know the laws extremely well. They will also know what will fly and bomb in your area when it comes to exemptions and such.

I really can't address the other issues, being a 13 and not a 7, but I would definitely meet with several lawyers, including the trustee one.


Good luck

[yoyoma51]

Ditto arkienurse.

We did this and have not regretted paying a little more for this guy who has been a trustee since 1982 and was the past-president of the national trustee association.

Here is another post with info about this:

http://www.bkforum.com/showthread.php?t=20213

[phoenyx]

I think seeing an attorney that is also a Trustee would be a great idea. Your attorney-client privilege will keep anything you say to him from getting to whichever Trustee handles your case, and he shouldn't be able to be assigned to your case (I would think) due to conflict of interest.

As for the Western Union charge... Your attorney will provide the best advice here. It definatley could be a bump in the road, your attorney will be able to say how large of a bump.

Make sure you keep (or if you don't have, create) proper documentation that the Western Union charge went to medical fees and wasn't kept as cash.

For your credit card company to object to this charge, it would either have to be classified as a cash advance within the 70 days before your bankruptcy, or they would have to prove that you made those charges knowing that you wouldn't be paying them back. If a creditor can prove that you had the intent of later filing bankruptcy, and not paying back such a large charge, they have a chance at a successful objection. Proving intent, however, is fairly difficult usually.

[BankruptPinoy]

Thanks so very much arkienurse for taking the time for me. Thank you yoyoma51 for the link and your thoughts as well.
And thanks phoenyx for your response and your thoughts about the Western Union also.

I really do appreciate everyone and the kindness.

Before I was thinking of pro se, but after reading more and more, it just seems like a stressful event and I would rather pay $2,000 for an attorney and be rid of our debts.

Thanks again!

[Minnymouth]

One thing..... an attorney will know the loopholes, the laws, the ways to move your funds around on your petition, and can answer any questions that your Trustee may come up with.

Filing pro se is "fantastic", if you learn/know the laws, do not stress out easily, and can be ready for a "fight" if need be.

For most pro se is not the way...... its too complicated and too stressfull.

During your bankruptcy, if things are NOT DONE CORRECTLY AND TIMELY your case will be dismissed. The Court expects YOU TO KNOW what you need to do..... there is no "guidance" by Court when you file pro se.........

Something to think about.....