Possible fraud?

[michael.foutz]

About 3 years ago me and my wife started going threw some hard times. We had some credit cards that had no balance on them we had used them before and paid them off. Times were hard and we made some purchases that we thought we would pay off when times got better. Well we never made payments on those purchases, and things have gotten worse and we want to file chapter 7 but after researching this were afraid that our actions may of be considered fraud since we never made a payment.

The amount of debt we racked up and never paid was about $1k per card and one was a jewelry purchase( I know jewelry isn't really a necessity item). So all in all it adds up to about $5000 worth of debt from these purchases.

We have not made any purchases with credit in about 3 years. Other then some hospital bills were unable to pay.

Our income is below $15,000 a year for a family of 3.

We have no assets other then a car thats paid for thats only worth $3k.

What I would like to know is whats our chances of those purchases where we used credit cards and never paid, being fraud?

[jdmc1973]

It can only be considered fraud if it's a recent purchase, as in the past 6 months. I wouldn't worry about it.

[JRScott]

If you've not charged anything on them in 3 years, then the balances would not be seen as fraud if you filed today, even if you never made any payments.

[JollyGG]

Since these debts are over three years old you really have nothing to worry about. Additionally, since these debts are spread out as much as they are you really have nothing to worry about.

[coma]

One thing, though. $15000 is not a lot of money for a family of three. Is there any way to increase income? That may be an issue in the future...bankruptcy doesn't cure the low income part of the problem. I'm not trying to sound harsh, but that's the trth. Our income went from good to low for a family of 4, and after our 341, I got a better job, which has helped tremendously.

[PaKettle]

You should be okay since the charges are so old.
However, you should try to figure out how to make more money so you don't end up in hot water even after a Ch. 7!

[michael.foutz]

Thanks for the input. The income problem is because I have been battling multiple illnesses for the last 3 years. My wife has been the one working while I take her place at home and take care of our son who is now 2 years old.

Believe it or not we can survive on $15,000 for now. We havent made any credit charges in about 3 years. We eat a lot of beens and rice, we spend about $200 a month on food. We don't have cable but we do have cable internet thats about $18 a month. We also turn the thermostat down to 60 in the winter and about 78 in the summer our power bill averages around $60 a month. We live in a apartment thats older but in a decent part of town that only costs us $485 month. Our car is paid for and we only spend about $60 a month on gas(we don't go out much). We shop at second hand clothing stores.

It's not the best life, but we don't think of our selfs being poor and most people that meet us would not think were poor. Fortunately my health has gotten much better and I can get a fulltime job, and my wife is about to get a $2k a year raise. Were only in our 20's right now, so our income is going to be low until we get some experience and more education.

The only reason for bankruptcy is that in 2 years after bankruptcy we could buy a small home and start building equity instead of making our landlord rich. Thanks for the advice, and I think were going to start looking for a lawyer to start bankruptcy process.

[Catia]

michael,
just wanted to give some 'heads up' on the low income side due to illness---
I GET it!!!--
I go through this too.
Yes, the income is low for a family of 3, but as long as you are getting what you and your family needs, and are safe/warm/fed/loved--you will get through. I know there are ways to do it, because i've lived it myself, and am living it right now.
If the BK makes it easier, that is another blessing in disguise.
Sometimes times are hard. Poverty level is no treat, but please don't judge your self worth based on a dollar amount. You are caring for your kids--no $$ amount can be placed on good parenting!!! Ask any housewife!!!
Get your clean start, and some of this stress that you have now will be gone, and that will help your health--stress is the worst on those of us who are ill, it compounds everything.
Keep your head up--cuz this too shall pass!