Has anyone here ever got an objection from CC's on balance transfers?

[rpaws]

This topic brings up a very important point for many of us.

The questions are how long should you keep paying on a recent balance transfer

and

How long should you wait after a transfer before you file.

They are 2 different questions that must not be confused with each other.


The posts thus far are useful but still leave the answer unclear.


I have just stopped paying on all cards, but 2 of them, 4K and 6K, are pure balance transfers about 3 months old.

I am waiting another 6 months to file but should I stop or keep paying on the 2 accounts with the recent transfers? I won't be paying any more on the other CCs

One may be a few days late at this point.


I think many people are confused on this point. Any personal experiences or clarifications would be greatly appreciated.

[rpaws]

A clarification in my case: I really cannot afford to pay even those 2 cards. Extremely low income at this point and basically judgement-proof. Basically a "charity case" at this point.

But I really need that 10K to be taken care of during my BK to come. I am not kidding when I say that even paying these 2 cards will come out of my family's most basic necessities for survival, or I will have to "beg" someone even for this money.

[TEW]

This topic brings up a very important point for many of us.

The questions are how long should you keep paying on a recent balance transfer

and

How long should you wait after a transfer before you file.

They are 2 different questions that must not be confused with each other.


The posts thus far are useful but still leave the answer unclear.


I have just stopped paying on all cards, but 2 of them, 4K and 6K, are pure balance transfers about 3 months old.

I am waiting another 6 months to file but should I stop or keep paying on the 2 accounts with the recent transfers? I won't be paying any more on the other CCs

One may be a few days late at this point.


I think many people are confused on this point. Any personal experiences or clarifications would be greatly appreciated.

[Medora]

Hi Ready2Puke, I am too, LOL. I didn't realize all those clever balance transfers I did this year to get lower rates (into my bank acct. and right back out) would be considered "cash advances", and I wasn't worried, because I never thougth I would file BK! The transfers almost all went to pay off other cards--like you, I've gone back and forth between B or A cards for YEARS. Last month was my most recent transfer. I have made all payments timely, and can continue to do so for 5 more months. But then the home foreclosure issue (with the unsecured 2nd) will have to be dealt with.
I am positiviely TERRIFIED of objections because of the HUGE balance transfers--I stopped making charges this week.
Does anyone know if the creditors look to see that they were actually transfers, and if that makes a diff on dischargeability??
Thanks for the advice... I can't wait to get my "fresh start."

[TEW]

Hi Ready2Puke, I am too, LOL. I didn't realize all those clever balance transfers I did this year to get lower rates (into my bank acct. and right back out) would be considered "cash advances", and I wasn't worried, because I never thougth I would file BK! The transfers almost all went to pay off other cards--like you, I've gone back and forth between B or A cards for YEARS. Last month was my most recent transfer. I have made all payments timely, and can continue to do so for 5 more months. But then the home foreclosure issue (with the unsecured 2nd) will have to be dealt with.
I am positiviely TERRIFIED of objections because of the HUGE balance transfers--I stopped making charges this week.
Does anyone know if the creditors look to see that they were actually transfers, and if that makes a diff on dischargeability??
Thanks for the advice... I can't wait to get my "fresh start."

Ok the creditor would have to prove you intended to commit fraud. Did you it does seem so. You were trying to pay debt with more debt. My lawyer said 90 days for a balance transfer.

[Medora]

I'm confused--balance transfers are not fraud, using debt to pay off debt? I've never been late on any payments. Debt has gone up, then down, then up again due to business difficulties, but we've had good income with intent to pay off cards up until recently. At one point we were going to take the equity in our house to pay them all off (that was the point of the home purchase), and well, you all know how that one turned out. :-( With income going UP each year, we thougth we would get a handle on this...but the sour economy has hurt out business big-time, and we are finally facing the music.
What is fraudelent about that???

[albacore44]

I have been doing B/T the better part of 2 years. the most recent one's are smaller amounts mainly from a couple of cards with no or low balances to other cards just to make the min. monthly payment on them. i also paid off several with a 40k loan from my 401K 6 months ago before i took a hard look at the situation. boy that was stupid. i still have enough cash on a couple of cards to go for another 2 months, then i plan to stop paying. plan to file in 6 or more months depending if someone tries to sue. that shoul put the larger of the B/t's well behind me as they were early this year. It's way too complicated. my wife and i have seperate CC's with the same banks. i would use my BT to pay hers, then she would use hers to pay mine........Times up.

[Overmylimit]

I think just about everybody is robbing Peter to pay Paul, so I am sure the Trustees see this all the time. So if you use credit to pay debt is it fraud? Maybe; but there are a lot of people doing it because they just don't have a choice.

[ready2puke]

Can you stop charging on your cc's...now? Are yours as high as mine? Not sure if it matters how high they are just wondering. Make as many pymts as you can (I was only able to make 2 & 3). Im waiting for 7-8 months tho...just to be safe I would stop charging and wait as long as you can. Make a few pymts like everyone has said..then save your money honey...

[Medora]

Thanks, pukey... the cc's are about $121K right now, no kidding. Home is upsidedown by $200K (yeah, I live in Cali...) I can't believe this nightmare has gotten so bad so quickly. I am so mortified. We have been making good income, but really didn't realize how close to the edge we were... We've learned our lessons well, but just want to get through to the other side. I don't want to wait TOO long to file, because we're HOPING my husband's business will start to improve, and we don't want to go over our "means." But it does take 3-6 months for his commissions to come through so I think we'll be okay.
Thanks for all the advice/support on this forum!

[albacore44]

Can you stop charging on your cc's...now? Are yours as high as mine? Not sure if it matters how high they are just wondering. Make as many pymts as you can (I was only able to make 2 & 3). Im waiting for 7-8 months tho...just to be safe I would stop charging and wait as long as you can. Make a few pymts like everyone has said..then save your money honey...

I plan to stop soon, then right after 1st of the year take about 10K from my 401K , and i'll still have 100K left, then i'll sit on it for an emergency stash. yes i'll have to pay taxes on it but it will be 2009 income and reported on my 2010 tax filing.wjth the reduced income i now have it should balance out.

[ready2puke]

Medora your crackin me up...pukey...I love it I have a nickname for my screenname.lol
Thanks for the chuckle I needed it.. I have one paying client all week. Damn I hate this economy

[lrprn]

I plan to stop soon, then right after 1st of the year take about 10K from my 401K , and i'll still have 100K left, then i'll sit on it for an emergency stash. yes i'll have to pay taxes on it but it will be 2009 income and reported on my 2010 tax filing.wjth the reduced income i now have it should balance out.

Please, please think this through thoroughly before taking ANYTHING from your 401K before you file. The $10K you take out will be added to your income for the Means Test because you've converted a protected asset that doesn't count as income (your retirement) into a non-protected one that does count (cash) within six months of filing. Also you may not be able to protect $10K in cash if you file - it depends on your state's cash exemptions. Some states have no cash exemptions at all.

If you are filing with a lawyer, please ask him/her about this plan of yours. Once you remove the money from your 401K, you're stuck. You could find yourself in a really bad position and throw your filing into a big mess to boot.

[texanboy76]

Paypal question

How does paypal look to a Trustee? I used paypal transactions to get cash instead of using a balance transfer or cash advance with the card. My problem is this:

I have about 9K to Amex Platinum due Nov. 26 and another 7k due to Amex Gold on Nov 26th. Don't have the cash to pay them however I did a paypal transaction for 7K on the Amex Platinum. Is it best to just cut off using ALL cards? I have other cards that I'm making payments on but just don't have the 16K to pay AMEX Plat and Gold.


thoughts???? My lawyer isn't getting back to me until Friday and I'm really concerned....

[ready2puke]

Hi Tex...the only time I use Paypal is when Im buying something on Ebay and its a tiny amount and gets taken out of my checking account. But if its coming off of a credit card? Then if thats true then you're still using your credit card just thru a back door which isnt much of a grey area, its still using your card. So you really have to stop it, stop using your cards. The longer you use them the longer you wait and the more likely an objection. AX is brutal...dont want to scare you...wait yes I do...so stop it!!!