Am I screwed? What say you?

[frodo123]

Hey there.

I'd love some advice here. I've got a bunch of unsecured business debt that I personally guaranteed ($130k or so) which I am unable to pay back. My question is when should I stop making payments on these debts? I've heard in the forums that if I stop making payments right after doing a purchase or cash advance, that the creditor may be able to challenge the discharge of the debt. My last cc purchase and cash advance was last month.

I don't plan to file for at least 6 months...

Thanks

[southernbelle]

I don't think you're screwed. I would make at least 3 or 4 min. payments if it doesn't cause a hardship before you decide to file. That way it shows you at least made an attempt to repay the debt that way it will be less likely for the creditor to challenge it. There are still no guarantees that they won't challenge, but at least you can show you did not purposely try to defraud them and did make some payments.

Also, the amount of time you put between the charge and when you file helps your case as well. Good luck.

[Dollar Bill]

how much of a purchase or cash advance are we talking? That matters!

[AngelinaCatHub]

Frodo123, we feel your pain, but HHM did advise to keep it all in the same thread. We will all read it anyway. I have made this same mistake, but it won’t fix anything any sooner. I am now in the six month club not the 60 day club for my misfortunes. The best bet you would have is really get to a lawyer. We here are all “victims” of sorts, of our own mistakes or unfortunate circumstances. We had once “big bucks” too and we are now C7, and I could make you all cry with my problems, but so many here could do the same. We (in my opinion) are a “Brotherhood” (excuse me ladies, it is proper) and will help if we can. I think your questions are way above us. Please take me as a friend as I do see your frustrations. ‘Hub

[liz417]

Hi,

You need to seek an attorney (or several) for a free consultation. We stopped paying the cc once we retained an attorney (in order to pay him). I also had cash advances, etc., on my cc's and the attorney asked how much/when was the last time we cash advanced? She said that we should wait a good 6 months before we file (ch 13) and there shouldn't be any objections...chapter 7, that's another whole mess, she said that it's harder to file ch 7 with cash advances within 6 months and the cc will most likely challenge the bk.