I was thinking about calling my CCs and telling them I was considering BK and request a 0% rate and lower payment. I would like to do this to put more distance between use and filing. I think I am overly worried something would come up and would feel better getting another 6 months in and then quit paying and waiting another 6 months. Is this plan unrealistic? Thanks in advance.
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Has anyone had luck getting CC to drop rate to 0% to avoid BK?
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continued.....
....currently I am using my cards and then paying the minimum only buying non luxery goods and paying bills. Is it a bad plan to use all my cards to about the minimum and then pay the minimum. I have been doing this the last 5 or 6 months to buy time but this plan won't last much longer since they have been lowering my credit limit.
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If you are insolvent - just stop paying and save money to hire an attorney. If you have had charges within 90 days of filing - that will be an issue as the Trustee assumes you knew you were not going to repay the charge as you knew you were insolvent. So, you must stop charging at least 90 days prior to filing.
The payments can be made after you have charged, but then you are just throwing good money after bad. Most people pay at least a couple of months after charging to show 'good faith' (no abuse). But the charging needs to stop at least a minimum of 90 days prior to filing.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..
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Originally posted by StartingOver08 View PostIf you have had charges within 90 days of filing - that will be an issue as the Trustee assumes you knew you were not going to repay...
...you must stop charging at least 90 days prior to filing.
...the charging needs to stop at least a minimum of 90 days prior to filing.
I'm wondering, what -- exactly -- are the repercussions with the trustee without a 90-day no-charging period?
And do you mean the local trustee or the UST?
Thanks.Last edited by BornAgain; 03-10-2009, 10:52 AM.
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Presumption of abuse = conversion of Ch 7 case to a Ch 13. Or dismissal of BK.
I am still looking for a better definition for you. Apparently the 'presumption of abuse' does not apply if you are under the median income as determined by the means test in a consumer filing.
If you are over the median income the presumption of abuse could apply - that is where the BK planning comes into focus. Most agree that getting a dismissal is the worst of all outcomes. The conversion from a 7 to a 13 is not delightful either, but preferable to a dismissal.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way..
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Wow. That's serious stuff for having some charges within a 90 day window. Thanks for looking up the law reference for me -- and everyone else who might come across this thread and benefit.
Okay, so charges within a 90-day look-back allows the trustee (UST, I assume) to presume abuse for any above-median filier.
When we get a link to a reference for that I'm going to nominate this thread for a sticky. Wow -- I just haven't seen that written anywhere. Scary -- I almost filed with food & gas charges inside of 90 days.
Again, thanks! :-)
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Just stop using the cards...use the cash to pay for what you were charging....start saving for an attorney. The judgements will not come as fast as you think. It is not like they are going to sue you tomorrow for being 30 days late. There is a process that the CC's go through to try to resolve. Just be prepared for some nasty sounding letters and some rude phone calls. Make sure your answering machine works and you can put your ringer on low or off, then hunker down.
Good luck...Filed - 12/24/08 (Merry Christmas Credit Cards!)
341 - 2/5/09
Confirmation - 3/13/09....Happy Dance!!!
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Small charges of necessities like food and gas during that 90 day period will not LIKELY cause any harm. But major luxury purchases will raise huge red flags.
Most likely if a creditor disputes any charges you made within that 90 day timeframe, the worst likely scenario is that you have to pay back THOSE charges. Charges made prior to that timeframe would get dismissed in the bankruptcy as normal.
Obviously, let me stress again, I'm only talking about necessities you couldn't manage any other way. It's still better to be safe than sorry and that means STOP charging within that 90 day timeframe unless you are in dire circumstances and have no other choice. You don't want to risk anything if you can help it. If you can't help it, and it's just a small charge or two, don't sweat it.Filed Ch. 7 (no asset): 12/30/2008
341 Meeting: 01/26/2009
Last Date for Objections: 03/27/2009
Discharged & Closed: 03/30/2009
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Most likely if a creditor disputes any charges...
BUT the fact that StartingOver08 points out, and what may come to haunt many people, is that the trustee will take issue and can presume abuse if there are any charges at all inside of 90 days (for an over-the-median filier). That's scary stuff and I think it needs to be publicised more; although I'm just a newbie here I have done a bunch of reading and research and somehow I managed to miss that huge, huge issue.
Again, thanks all.Last edited by BornAgain; 03-10-2009, 12:11 PM.
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Originally posted by BornAgain View PostThe trick is, one never knows how long it'll be before suits get filed.
They have to serve you notice of the filing. If a process server is knocking on your door you know the suit is coming. If you get mail from the court you may already have been sued. You still have time. The court date is often 30 days or more into the future. You can request a delay if needed. You can challenge the validty of the debt and postpone the action long enough to file BK.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -Rick
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I am going to try to answer your original question.
I have had 2 cc companies put my account into hardship with 0%. Doing so closed the account and set up autopayments. They basically take your balance and divide it by 12 or 36 months to determine what your min payment will be. Well this worked for us for about 6 months.....but actually looking back it really didn't work because we were putting money into a sinking ship.
Now, we DHs decrease of income, increase of health ins., etc we are not even able to make the min payments.
I guess it will look good, I hope, to the Trustee that we tried all we could before filing.
I have to say that once you start to think BK might be the only way out....you are usually already in that situation.
Good luck.
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Originally posted by Kansas1960 View PostI was thinking about calling my CCs and telling them I was considering BK and request a 0% rate and lower payment. I would like to do this to put more distance between use and filing. I think I am overly worried something would come up and would feel better getting another 6 months in and then quit paying and waiting another 6 months. Is this plan unrealistic? Thanks in advance.
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