Financial question...

[schel]

We took out a cash advance by a check on our American Express being we had available credit to pay for bills for the month. Got a letter in the mail that the check was declined and our available credit was lowered and we can not take out any more on the card. So now that we have already spent the money and will be getting a bounced check with our checking, should we try to take out on another card to make sure we don't have insufficient funds in our checking?
Auggghhh!!! Don't know what to do. If we wouldn't have made credit card payments this month we would have an extra 800.00 in the account. What should we do. We are going to retain a lawyer within the next month.
P.S.
Please be kind with your answers. I already have been bawling all evening.
Thanks.
Schel

[Flamingo]

Since you are planning on filing next month, why are you paying your credit card bills? If you stop those payments, you will have money to retain the attorney and extra cash available to purchase things you may need. Now you are stuck with having to cover your checking account and you will have to rob Peter to pay Paul somehow to cover your checking account. Also, you will probably have to explain all those transactions since they will fall within the look back period prior to filing. Figure out a way to cover your checking account and stop making payments on your credit cards. Do not stop your utilities or mortgage payment if you have a mortgage. Have you had an initial consultation with a lawyer yet? If not, I suggest you obtain one to find out exactly where you stand.

[aachudneymiles]

We took out a cash advance by a check on our American Express being we had available credit to pay for bills for the month. Got a letter in the mail that the check was declined and our available credit was lowered and we can not take out any more on the card. So now that we have already spent the money and will be getting a bounced check with our checking, should we try to take out on another card to make sure we don't have insufficient funds in our checking?
Auggghhh!!! Don't know what to do. If we wouldn't have made credit card payments this month we would have an extra 800.00 in the account. What should we do. We are going to retain a lawyer within the next month.
P.S.
Please be kind with your answers. I already have been bawling all evening.
Thanks.
Schel

1st off, if your planning on filing bankruptcy, you would need to stop using your credit cards and doing cash advances. Dont cry or be upset its a part of life we all make mistakes. I would stop paying everyone. Sounds like your robbing Peter to pay Paul. Go talk with a GOOD lawyer and come up with a date to file.
(Which will most likely be a few months after you STOP USING YOUR CARDS.)

Asfar as the checking account gos I wouldnt pay or cover anything, instead I would write them all off in my BK and get a new banking account before I file.

[keepmine]

The hole is deep enough. Time to quit digging.
Stop throwing money down a rat hole by paying debt that will be discharged in bk. If you value the relationship with your bank, workout a repayment arrangement. If not, let it go in the bk but, open another account elsewhere before you hit chexstsytems.
And, stop crying. This is just business-not inject emotion or try and make it personal. Act in your own best interest and move on. You'll be fine. You're not the first person who has tried to hang on a month to long and finally had the house of cards fall in.

[rfassett]

Um - I don't disagree with the others, but from a more immediate perspective, banks usually put a 5 to 7 day hold on deposits via cash advance on credit cards via a check. They apparently have had lots of other experiences like your own. So don't feel that you are the lone ranger here. Now, for all of those checks that you have written that are not going to clear, be proactive and contact those folks and ask them to hold the check if it has not yet been cashed (until you can get this worked out). Or if they have already cashed the check (deposited it in their bank), at least notify them of the possibility that it is going to be returned NSF. And tell them you will be in (or send them) (give them a date) to make the check good. I don't know where you are located, but in some states it is criminal to write bad checks. So be pro-active and make this problem go away. And at the same time, do as the others have said, get an appointment with a good attorney.

[schel]

Thank you.

-We did open a checking/savings account elsewhere. Problem is we are with a credit union and our Truck which we are planning on keeping is with them also. So... We applied to refinance it at the bank we opened an account with and were approved. We sign papers in 3 days.

-Our current truck loan and accounts are at a Credit Union and one of the debts we want to discharge is a line of credit on our checking account, just about maxed out.

-So you all think I should not pay or take out any money on the credit card to make payment on any of it?

- I do have bills due, we get paid on Friday, but what if they take all that money for the past due $2000 and then we again have no money for mortgage?

I did not sleep at all last night. Because of all this. What a mess.

-Should I make arrangements to go to the Credit Union and drain our account after we get paid and then we can pay bills from our new account? Thing is we do not get paid until Friday, most likely the bounced check $2000 will get there before that and they will take what they can get from our account, leaving us nothing for the month to live on.

I know I am a confusing mess, thats why I am here to get help from all of you, because I can't tell my parents or anyone we are doing this at this point. They just would not understand.

Would it help to call the credit union to tell them what is happening and work something out? What though, I have not a clue.

Schel

[keepmine]

I'd go to the CU this morning and put a stop payment on the checks. If they ask why, tell the truth-no money to honor the checks.

You also need to redirect your direct deposit to the new bank.

[schel]

Thanks, did just that this morning.
Schel

[sharksfan]

[deleted]

[sharksfan]

If you plan on walking away from ANY debt held at your credit union, GET OUT NOW. Find a new institution before you file. For items you wish to keep (like a car) set up payment through a bill pay service from your new bank/cu.


CUs + BKs don't mix.

[JRScott]

Almost everyone needs to stop paying the unsecured debt so that they can pay the lawyer. As the others said stop paying on any unsecured debt. Take that money and pay the lawyer.