does the trustee question what you used your credit card for?

[thegiver]

since my divorce 2 and ahalf yrs ago i have used my cc cards more then i like to say , though i have kept all my bills current doing so has depleted all my funds ...what worries me is i used my cards to help my son alot..he was in a bad accident and could not work ..would this look bad on my part? will they question me on what i used the money for ..most of it i really have no idea. I am 71 and on a fixed income..my debts without the cc debt exceed my income and have decided to file chapter 7 just on my cc card debt. I would appreciate any input anyone has on this ...thanks

[edwards2]

The trustees are looking for BK fraud. If purchases(non-essential) are made prior to filing BK the trustee will want to know the specifics. If they suspect BK fraud they will dismiss the case but this is for people who are obviously charging up to the max knowing they will be filing. That doesnt sound like your case at all. Simply explain the situation to your attorney and let him advise you. We had charges on our cards for a new dryer and dishwasher. We ended up in a hearing with the U.S. Trustee and she asked us if we had made charges on our cards in the past 12 months. Of course we had but not for boats, expensive dinners, etc., ours too, in part, were for medical bills and supplies among other things. Again, they are looking for filers trying to beat the system...you certainly dont appear to be one of those people. Good luck...

[EdytaHome]

If you had questionable credit card transactions within the last 90 days, the credit card companies (creditors) would show up at your 341 meeting and contest your discharge not the trustee.

[hhou812hh]

I got more convenience checks yesterday in the mail as I get these almost every day inviting me to use them for any purpose. So since they invite us all to join the party they shouldn't get mad at what we purchase. Just as long as they aren't big luxury items within months before filing they won't dispute it.

[HHM]

The trustee isn't so much interested in the purchases, again, unless its for items that the trustee can turnaround and sell. The various creditors may have a problem, and if they have a case that your pruchases were fraudulent (in BK terms), they may object to the discharge of the debt and you will still have to pay them back not withstanding the bankruptcy.

[thegiver]

thank you so much for your replys...I have wired my son quite a lot of money by wire on the phone when he needed it over several months time { in dif increments 1 or 200 $ at a time sometimes more or less since he lives in another state} but ive always made the pmts on time up till now ....this troubles me a lot to think they might consider it fraudulent as i would never do that...if anyone has had this situation could you please let me know how it turned out ......thanks again

[davidb81]

when was the last time you have used these cards? and have you filed yet?

[thegiver]

I wired him 125.00 3 dif times in june....no i havnt filed yet but have sent my expence sheet to a paralegal to make out the forms...he will send them back to me when he completes them....for me to file..just so i get them in by the "deadline"
I have the wire reciets, i never had the cash to send when he needed so would wire it on the credit card ..never thinking it would come to this..but since ive been reading on this site about wire transfers ...it really worries me...would this be the same in their eyes ..also have had to send the wire to dif friends of his for him since he lost his lic. and id..needed id to pick it up ! do you think im in trouble over this?

[carla107]

using cards

Can't you wait a while before you file? I used my cards alot before I went for my consultation in Nov. and then I waited to file until May I did not plan it that way I just needed to save the money for an attorney. I did not use them after the consultation with my attorney and realized that I was going to file.
Then again, I'm not in the clear yet. I have my meeting next week. I'll let you know how it goes.

[Dawn1970]

In my personal opinion I would expect you to be okay, Giver. Just tell the truth- your son was in a bad accident and you felt compelled to help him out, as many parents would. I wouldn't expect that they will dig deep enough to find out who your wired money to. They may ask you about it but I would just offer up the truth. I would think they'd be satisfied with that. I know it is easy to get paranoid about it. Good luck.

[SinkingFast]

You need to WAIT to file.

You can't make the payments on your CC's. I understand that. But you need to wait or you're gonna be paying money out of your own pocket to the Creditors.

There's a 70/90 day rule. 70 days for Cash Advances. 90 days for purchases. Your wire transfers are Cash Advances as far as the CC's are concerned. So you need to wait out the 70 days since your last transfer before you even think of filing.

If waiting means you cannot make your payments, then that's what you gotta do. Everyone has to do what's right for them. Your Credit will go in the tank with the lates piling up, but the Creditors won't even begin calling you about your payments until you're in excess of 60 days late. Then all you have to do is avoid the phone.

Wait as long as you absolutely can before you file. The longer time passes between your last CC use and filing, the better.

[Bobby'sGirl]

This poster filed last year and got discharge in Jan.

I happened to notice the date on original post and went to threads posted under that name to see what may have happened. Seems to have worked out OK.

http://bankruptcyforum.com/showthread.php?t=5737