Help

[debtfreeplease]

Hi everyone, I am scheduled to file Ch7 on Tuesday 10/28/08. I cannot get ahold of my lawyer and I am worried about the amount of money I can have in my checking account. I am in NY, and I would probably only have about $300 in the account. In NY I think there is a $2500 cash exemption but I am using that for my tax return that I will get next year. So should I drain my checking account before tuesday?

I am also a little worried about one CC (WAMU) that I have put $5500 on from May through middle of August. The card had a zero balance when I started using it in May. My lawyer said it should be fine since I didn't make any single large luxury purchases, just a lot of smaller purchases. Do you guys think this would be considered abuse? The worst thing in the world would be to get dismissed!

[AngelinaCatHub]

Hi everyone, I am scheduled to file Ch7 on Tuesday 10/28/08. I cannot get ahold of my lawyer and I am worried about the amount of money I can have in my checking account. I am in NY, and I would probably only have about $300 in the account. In NY I think there is a $2500 cash exemption but I am using that for my tax return that I will get next year. So should I drain my checking account before tuesday?

I am also a little worried about one CC (WAMU) that I have put $5500 on from May through middle of August. The card had a zero balance when I started using it in May. My lawyer said it should be fine since I didn't make any single large luxury purchases, just a lot of smaller purchases. Do you guys think this would be considered abuse? The worst thing in the world would be to get dismissed!

[debtfreeplease]

Thanks 'Hub, I used it for everything! Gas, groceries, going out to lunch almost everyday with coworkers, clothing, and just a bunch of other stuff. I didnt buy a flat screen tv or a laptop or anything even remotely close to that.

[hopingforsanity]

I live in NY also. I would not worry about that checking account, use the $ to pay bills. I would also stop using any credit card for anything. Be nice if you had like 70-90 days between using a card and filing, or is it signing the petition I forget? I am new to this. The trustee will look for big cash withdrawls from your checking accts, esp if they exceed what income you made. I learned that today at my 341 meeting while I waited over 2 hours for my turn. Someone had withdrew $1,900 ever other day from their checking acct and a day before signing the petition. The trustee was not pleased.

[BK2008]

You want as much time distance from your charges and BK filing date as possible.

But still should not have a problem. CC charges are small. They're looking for the down payment on the yacht (big ticket items). Your $300 checking account is nothing. Use it to pay your regular bills.

[debtfreeplease]

Is it weird that my lawyer said it will be fine? I know I am freaking out but I just don't want to take any chances.

[TEW]

debtfree
it depends on what you used your cards for. living expenses food, transportation, shelter. now that Rolex may not be allowed j/k
If you are like me and you are lucky enough to be getting a paycheck I am willing to bet it's gone before you even see it. And another thing that seems too happen is things go wrong at the worst possible time like the other posters said try to put some distance between the time you've used the cards and the time you file.
also keep in mine the creditor has to prove you never intended to pay them back

[WoodSprite]

Is it weird that my lawyer said it will be fine? I know I am freaking out but I just don't want to take any chances.

I try not to post anything that will cause anyone any needless worry, but frankly I would not file until you have at least pinned your lawyer down very specifically on this issue.

Yes, it's true as TEW points out, that the trustee will not generally balk at any reasonable expenses of under $600 during the 6-month lookback, but that would be withdrawals from your bank accounts. Credit card use is completely different: the issue there is going to be whether the cc use was fraudulent. One of the tests of fraudulent use would be whether you used the card once you intended to declare bankruptcy? Sure it's difficult to prove intent, but that's the reason most attorneys recommend a minimum of 6 months between your last cc use/advance and your filing date. I wouldn't think it would be unreasonable for the trustee to ask when you retained your attorney, and to compare that date with the last cc use.

I don't know...you say in another post that you used the card right up into September. If your attorney has specifically told you it's not going to be a problem, I guess he knows the trustees well enough to know what they'll go after. Maybe you're so far under the median (as I was) that they're not even going to look twice. I'd want to be absolutely sure, though. Call your lawyer, and don't let him or her file until you get a very clear answer about this. You'll know you've gotten a very clear answer when this is not one of the questions keeping you up nights.

I hope you're also thinking beyond the next week or two enough to figure out how you're going to manage going forward without that extra $1300 a month you've been using the card for.

I'm sorry to sound so negative, but I'd love to hear that your fresh start in a few months is really a new beginning for you, and not just a chance to dig yourself into the same hole. Good luck!

[AlreadyFiled]

Is it weird that my lawyer said it will be fine? I know I am freaking out but I just don't want to take any chances.

i have the same thing happening, my lawyer said it is fine yesterday in email too, he just recommended that I stop using it until im discharged and if for some reason, they allow me to keep the card then 'lucky me' is what he said.

Should be no problem, just stop using it right now...