Does an Attorney tell you to wait?

[bk12]

If we recently got our tax return back $4000.00 and we sold our car $8800...bought another car for $4000 and now it needs $3000 in repairs!! We transferred 10 balances to onto 4 cards because a debt settlement company said they would only accept 5 accounts, then we charged kids clothes because Kohl's pushed us to save a stupid $200 bucks if we used the account. I'm afraid we are making a huge mess of this bk "preparation" and I just want to get it over with. Now I think the accounts are going to be all messed up and look like we were trying to ....I don't know what. We are just stupid and that's how we got in this situation to begin with. If we retain a lawyer now can he just advise us to stop using the cards until these transfers expire the 60/90 rule or can we proceed with the Bk and just explain why we did all this? We are 3 months delinquent, we moved out of our house already, we are all settled into a rental property. I am so freaked out and I think I'm just making it all worse. We wanted to file 3 months ago but a lawyer said she wanted to wait because of a large paycheck that my husband got for backpay. While we were waiting we made a mess of everything else. Is there any way to fix this so we can file?

[StartingOver08]

Time is the way to fix the mistakes.

First of all, when did you transfer your balances to the four cards?

When did you last charge anything on any of your cards?

Where are you located? Do you know what your exemptions are for BK?

Time is your friend when you have made an error, like balance transfers, cash advances and additional charges. Now is the time to stop using the cards altogether. The problem with filing too fast is that the courts do not accept explanations so much as 'follow the rules'. What the court can do is say that that debt is non-dischargable, which is a terrible solution. That is why you want to wait out the time from the last usage, so the credit cards have no objection to discharging that recent debt or the recent balance transfers.

As to waiting for the large income spike to drop off, that is a wise idea. You do not want to be forced into a Ch 13, if in fact you can normally qualify for a Ch 7. Post a few more details so we can help you.

[AngelinaCatHub]

Your lawyer some months ago was right and had your best interest in mind. Now is the time to learn self control as you will need it for your eventual “New Start”. I would cut up all your cards now, and wait it out 90 days or more. If you wish to try it again, you probably will get the same advice and heed it.

Don’t demean yourself as stupid as we all have made our own mistakes for various reasons. By the fact that you realize yours, and have made a wise business decision on bk, proves you are not stupid. Now you must learn self control and back up your life style with real determination as you will need it to overcome some of the normal stress going along with bk. ‘Hub

[bk12]

All the attorney first told us is that "we definitely qualify for ch 7 because our income is below the median" there was no mention of being pushed into ch 13. I asked her if we should go ahead and move, find a rental before our credit looked like crap and she said yes...so we did that. She told us our car exceeded the allowable value so we sold it for what we could get. That was $8800. We took out a 2nd mortgage to pay off the car a few years ago. We used some of the money from selling our car to but another car as I mentioned before, pay for moving expenses and get the utilities transferred. We attempted to use the rest for exempt items (kids clothes) and then I used the cc instead because it was under $500 if we took the 20% off discount and since it was for exempted items (not luxury purchases) I didn't know what the bk would do. Our other idea was to immediately pay for the purchase with cash, which we could still do, but then does it look like a preferred debt? I am having a really hard time figuring out what is the "honest" thing to do and what is the "bk procedure" thing to do.

[bk12]

We are in Arizona.

[bk12]

The purchase at Kohls was a couple weeks ago for just under $500.
The balance transfers were about 2 months ago each for under $500 but one was about $1000.
We haven't used the cards for anything else since January.
We haven't made any payments to the cards since January or our mortgage either.

[AngelinaCatHub]

You sound fairly safe on the cards and since you saved $200 on the card, prudent. Now I would pay ONLY for the amount you spent to get your discount, then pay a little on the other cards also, then cut them off. Time is still your friend. The longer you can hold off, due to the large 8800 sale, even if you purchased essentials, it is a substantial amount. Keep it 90 days away from you IF YOU CAN. Otherwise take your chances and as busy as they will soon become, it may be a slide through and you will be over with it all. ‘Hub

[bk12]

We sold the car nearly 90 days ago. We deposited a money order for the payment into our chase checking account and then took all the cash out from that account but it's not closed. It has a balance of $100. We have another checking account now because we also have chase cc's.

I don't know how many months of bank statements are required?
We have been keeping all of our receipts for everything but we have been paying cash. I don't know if this is right or wrong but it's what we are doing. We are planning to pay cash for the attorney too.

[Mi Bankruptcy]

You basically waiting to try to let your case go through without a hitch. If it is necessary you can always repay what you spent. That is an option if you need to file now. However, you would be surprised at how quick your 90 days can go by.

[StartingOver08]

Make sure to download at least a year of bank statements. Should be easy to do, usually you can get 6 yrs of bank statements on line. Just save to your hard drive. Once you file, you will not be able to access your accounts on line.

Also same thing for the cc's - download the statements, save to your hard drive. Save two years. If you only need 6 months, then just print up the six mths. You need to do it before the cc's limit your online access.

[bk12]

Thank you, I know it seems like 90 days really isn't that long. But what about the house and the forclosure? And I guess it's just all the worrying about "what if we really don't qualify and we get pushed to a 13" and other types of worries. 90 days to worry about that is hard. And since we have moved out and reduced our expenses, I just want to start trying to save money and we can't do that either. Like this $3000 in unexpected car repairs? What if...what if...what if...and how are we supposed to keep our bank balance at $150.00 for 90 days if we aren't paying any debts?

Are prepaid gas cards exempted purchases? and what about grocery store gift cards?

[StartingOver08]

You don't keep your balance at $150 for 90 days. You keep it at $150 for the DAY of FILING only.

[AngelinaCatHub]

You basically waiting to try to let your case go through without a hitch. If it is necessary you can always repay what you spent. That is an option if you need to file now. However, you would be surprised at how quick your 90 days can go by.

They usually ask for 6 months of all checking accounts and balances. Mi Bankruptcy, is chiming in here as a 90 day vote also. Please let it go as close as you can. You can get all your paperwork done now, and plan your "New Start" and make it fun (if that could be so) and organized. You seem to have it pretty will in hand now except for anticipation of having it over and done. That's sure understandable. 'Hub