how do I pay??

[okiemom2008]

We are filing beginning of February. In December we bought a computer at best buy (we brought our old one in to be fixed and they said it was not fixable) so we bought one of the cheapest ones we could find for 575.00(with tax)

We put it on out best buy card that had a 0 balance. So now it has a 575 balance. I want to pay 275 out of one paycheck and 300 out of the other so it does not look like alot. I am going to pay 275 today out of my checking account...should I pay it online with my bank account or pull the money out and send in a money order to best buy?

Also-on assets what would I put for this computer to be valued at?

Thanks!

[lrprn]

We put it on out best buy card that had a 0 balance. So now it has a 575 balance. I want to pay 275 out of one paycheck and 300 out of the other so it does not look like alot. I am going to pay 275 today out of my checking account...should I pay it online with my bank account or pull the money out and send in a money order to best buy?

It's admirable that you want to pay off this debt before filing. However, if you have a lawyer, ask him/her first about whether to pay this debt or not right before filing.

If your lawyer says it's ok to pay this debt, then even if this Best Buy loan is considered unsecured, you'll be under the $600 preferential payment limit within 90 days of filing. That wouldn't be a problem for you - the trustee would go after Best Buy to return the payments - but it could delay your discharge and closing.

Also-on assets what would I put for this computer to be valued at?

Computers are considered a part of your household goods. Most people own household goods worth a total between $2-4,000. You are estimating worth at garage sale/Craiglist prices, not what you paid originally and not what you may have insured items for. Exceptions are expensive jewelry, art, furs, etc. Those are usually valued separately at their assessed current value when you file.

[okiemom2008]

It's admirable that you want to pay off this debt before filing. However, if you have a lawyer, ask him/her first about whether to pay this debt or not right before filing.

If your lawyer says it's ok to pay this debt, then even if this Best Buy loan is considered unsecured, you'll be under the $600 preferential payment limit within 90 days of filing. That wouldn't be a problem for you - the trustee would go after Best Buy to return the payments - but it could delay your discharge and closing.

Computers are considered a part of your household goods. Most people own household goods worth a total between $2-4,000. You are estimating worth at garage sale/Craiglist prices, not what you paid originally and not what you may have insured items for. Exceptions are expensive jewelry, art, furs, etc. Those are usually valued separately at their assessed current value when you file.

Since we had already retained him when we bought it and we knew we were filing...wouldn;t that be fraud if we did not pay it?

Thanks for the help!

[okiemom2008]

does anyone else agree that we should not pay it? I called my attorney and he still has not called me back. I want to either pay it or not pay it and pay our other bills with the money.

I just do not want out case to get dismiseed for something as silly as this.

thanks

[katie]

Good question okiemom. Not to hijack your thread, but what does the $600 preferential payment mean exactly. The two attorneys we spoke with both asked if we had paid more than $600 at a time to any creditor, which we had. Our minimum payments on three cards were $550, I always tried to pay a little bit extra no matter how small the amount extra I had. At that point, we had no intention of filing, never even crossed our minds. So for the past several months, three of the four major cards had monthly payments of $600 each paid. Then the other two cards are store cards, one we paid off (only $300) and the other we just pay like $50 each month. The other major credit card I paid a couple hundred to each month as the balance is no where near what we owe on the other big ones. Does this sound like a problem?

[okiemom2008]

Good question okiemom. Not to hijack your thread, but what does the $600 preferential payment mean exactly. The two attorneys we spoke with both asked if we had paid more than $600 at a time to any creditor, which we had. Our minimum payments on three cards were $550, I always tried to pay a little bit extra no matter how small the amount extra I had. At that point, we had no intention of filing, never even crossed our minds. So for the past several months, three of the four major cards had monthly payments of $600 each paid. Then the other two cards are store cards, one we paid off (only $300) and the other we just pay like $50 each month. The other major credit card I paid a couple hundred to each month as the balance is no where near what we owe on the other big ones. Does this sound like a problem?

My lawyer just asked if I had paid 600 total to any creditors 3 months before filing. So if I had made a 250 payment in November 150 in December and 300 in January I would have to write it down. Luckily I quit paying everything in November!

[soleprop]

does anyone else agree that we should not pay it? I called my attorney and he still has not called me back. I want to either pay it or not pay it and pay our other bills with the money.

I just do not want out case to get dismiseed for something as silly as this.

thanks

it is my opinion that you should continue to make payments (that fit within your budget) towards any assets you intend to keep post bankruptcy. i do not think you should change your payment plans for this item, the debt will need to be included in your bk, but you can reaffirm with the creditor and continue making your payments. you could pay it off prior to filing but really you should be using your paychecks to buy food and pay up your utilities, or saving as much of your paychecks as you can in cash (not in the bank) to help you through the bk process.

just opinions...

Good question okiemom. Not to hijack your thread, but what does the $600 preferential payment mean exactly. The two attorneys we spoke with both asked if we had paid more than $600 at a time to any creditor, which we had. Our minimum payments on three cards were $550, I always tried to pay a little bit extra no matter how small the amount extra I had. At that point, we had no intention of filing, never even crossed our minds. So for the past several months, three of the four major cards had monthly payments of $600 each paid. Then the other two cards are store cards, one we paid off (only $300) and the other we just pay like $50 each month. The other major credit card I paid a couple hundred to each month as the balance is no where near what we owe on the other big ones. Does this sound like a problem?

yup, it does sound like a problem -- or at least it will look like preferential payments to a trustee. you'll need to postpone filing bk for at least 90 days after the last large payment you made.

[CatsInTrouble]

my computer died the hard drive crashed=---overheated. Am now using hubbys. I use my computer for my work, compeltely, totally and only. Now have to make due with hubbys.

[okiemom2008]

[QUOTE=soleprop;233603] you could pay it off prior to filing but really you should be using your paychecks to buy food and pay up your utilities, or saving as much of your paychecks as you can in cash (not in the bank) to help you through the bk process.

[QUOTE]

I did not think you could save cash. I thought you had to show proof of where money you take out of the account goes?

[soleprop]

not in my experience; i requested paper checks from my employer and i only deposited what was required to pay my bills; the rest i kept in cash. the day you FILE you have to disclose the amount of cash you have, but not afterwards.

i did keep receipts for all cash transactions, as well.

[AlreadyFiled]

Best buy...

I also had a camera and tv on a best buy card...best buy was the BEST to negotiate with. They agreed to lower what I owed by $600 and took off the interest and made it 0% interest for me and agreed to lower payments starting 60 days after my discharge. They were nothing but a breeze to work with during bankruptcy and they are letting me keep my tv and camera.

It worked out really good with them for me.

[AlreadyFiled]

does anyone else agree that we should not pay it? I called my attorney and he still has not called me back. I want to either pay it or not pay it and pay our other bills with the money.

I just do not want out case to get dismiseed for something as silly as this.

thanks

my lawyer said not to pay but to make minimum payments...it worked out really well by his advice. if i had paid it off, they could come after what i had purchased from them. i was able to keep it by making monthly payments, filing bk and reaffirming with them.... then there was no trouble. it worked out well.