Hi, I am new

[812scoregone]

Always great reading posts and find people in similar situations. There has to be a forum for everything in this world. The INTERNET is amazing, feedback from everyone.

Here is my dilemma


I had a great score, took 20 + years to build it. Then I started gambling some and more, next thing I know I was in $20k in credit cards. I wanted to see if I could max all my cards out. I am going to lose my home, my domestic partner and I have split for now. I have income from Pay pal. I cant afford the mortgage by myself. After talking to my lawyer he said they check 6 months of bank statements, credit card activity. I know I can last 6 months rent free with the time limits they have to finally get you out of the house. If I sit for 6 months and file chapter 7 it sounds like its to easy right? Just asking for you do goodies please don't judge me, I am just a small town white boy who has lived by the rules and been screwed.

Does the bankruptcy court or whoever have the ability to see money from on-line sales, pay-pal? No money is going to a bank account, just paypal debit card. Do they go back farther than 6 months? I would try pay 3 months of cards back before I stopped, couldn't afford more.

[chloe0724]

The income lookback for a chapter 7 is 6 months. As far as the credit cards go, it depends on what the purchases were. They can go back farther than 6 months and challange things if they want to. Did you use your cards for cash advances? If so, these are looked at closely. Try to make payments on the cards as long as you can to distance yourself from those charges or advances greater than $500. The credit card companies can claim fraud if you did a cash advance or made a large purchase and then stop paying and file BK shortly after.

[812scoregone]

The income lookback for a chapter 7 is 6 months. As far as the credit cards go, it depends on what the purchases were. They can go back farther than 6 months and challange things if they want to. Did you use your cards for cash advances? If so, these are looked at closely. Try to make payments on the cards as long as you can to distance yourself from those charges or advances greater than $500. The credit card companies can claim fraud if you did a cash advance or made a large purchase and then stop paying and file BK shortly after.

Some big cash advances. How far can they go back?

[StartingOver08]

Some big cash advances. How far can they go back?

Well, on mine they looked back two years on my bank statements and 3 yrs credit card statements, 4 yrs tax returns.

[jessegirl]

Some big cash advances. How far can they go back?

Mine went back 2 years CC statements, 2 years bank statements. Yes, they did ask for the ebay transactions because paypal is considered income. They wanted the paypal statements also. Never, hide anything, believe me if you try to hide they will find it. Not saying you would, just trying to let you know being you are saying, the money never goes to the bank account. Please do not try to conseal anything, because they WILL find it. Knowbody here will tell you that you should not report paypal income.

[812scoregone]

Wow, I have been mis lead, my lawyer said 6 months is all they go back. He did say to report income, any income. Do they ask you what you are selling? Do they dig dip into that? What am selling possibley crosses copyright laws.

If you dont file chapter 7, what can they do if you have no job, home? Like I said I am going to lose my house.

Is each state different?

[OhioFiler]

Wow, I have been mis lead, my lawyer said 6 months is all they go back. He did say to report income, any income. Do they ask you what you are selling? Do they dig dip into that? What am selling possibley crosses copyright laws.

If you dont file chapter 7, what can they do if you have no job, home? Like I said I am going to lose my house.

Is each state different?

Relax. The bankruptcy trustee isn't going to try to determine if you've violated copyright laws. Jessiegirl's problems are significant but her case is the exception not the rule.

[jessegirl]

Wow, I have been mis lead, my lawyer said 6 months is all they go back. He did say to report income, any income. Do they ask you what you are selling? Do they dig dip into that? What am selling possibley crosses copyright laws.

If you dont file chapter 7, what can they do if you have no job, home? Like I said I am going to lose my house.

Is each state different?

Was that your business on ebay or paypal? Cause they will ask you about it. If you were making money off of selling the same type of stuff that is a business. Yes, the trustee would be interested in it. I can't tell you if he would care that it violates a copy right law, but if you are selling the same items on ebay and making money its a business. I was selling used clothing etc. so it wasn't an issue, but I did have to show the statements.

The only time they are going to ask you for more then the 6 months of stuff is if the UST gets involved. Sometimes they do and sometimes they don't. Know one on here can tell you if the UST is going to get involved or not.

[812scoregone]

What is the UST, I charged a good $45k in what would be 12 months previous to filing, another $6k on another card, 6k on another card. All within 8 months of filing for the last 2 amounts. I can pay min payments if I need to to show intent to pay, but I am more worried about Paypal, I sell cards with a free DVD. The dvd is copyright material. I need to find how in detail they will get, if I just say I am selling cards will that be enough.

[jessegirl]

What is the UST, I charged a good $45k in what would be 12 months previous to filing, another $6k on another card, 6k on another card. All within 8 months of filing for the last 2 amounts. I can pay min payments if I need to to show intent to pay, but I am more worried about Paypal, I sell cards with a free DVD. The dvd is copyright material. I need to find how in detail they will get, if I just say I am selling cards will that be enough.

The UST is - An officer of the Department of Justice appointed by the Attorney General to perform administrative tasks in the bankruptcy proceeding.

When you say you sell cards, whatdo you mean? Greeting cards? So you are just selling the cards right? You may never get even asked about this, but if you do you should be prepared. The UST only steps in if they see abuse or fraud. You may never even get to know the UST.... :-).

Did you ask your attorney about this?

[812scoregone]

would $60k in charges in a year to 6 month period before filing, but clean the last 6 months be fruad? sports cards, my lawyr said they want to know what you sell cause they want to take some inventory to pay the creditors.

[OhioFiler]

would $60k in charges in a year to 6 month period before filing, but clean the last 6 months be fruad? sports cards, my lawyr said they want to know what you sell cause they want to take some inventory to pay the creditors.

Your cards have value and you have to list them as an asset.

The $60K charge in the last year may become an issue. What did you spend the $60K on? I suggest you go over all this with your attorney.

[StartingOver08]

If you have a business, and it sounds like you do, they are probably going to look back a year. Your attorney is right about the inventory, unless you have liquidated everything prior to filing and have proof of the funds received and the payouts to creditors.

look at this link: http://www.moranlaw.net/failing-startup.htm

look here too: http://www.moranlaw.net/struggling.htm

[812scoregone]

Your cards have value and you have to list them as an asset.

The $60K charge in the last year may become an issue. What did you spend the $60K on? I suggest you go over all this with your attorney.

Cash advances, gambling, a car, electronics. I have told him but he says that the 6 month is all they will look at. The cards are wortless, 2 cents at best, people buy the cards to get the DVD, the cards are just a prop.

[812scoregone]

If you have a business, and it sounds like you do, they are probably going to look back a year. Your attorney is right about the inventory, unless you have liquidated everything prior to filing and have proof of the funds received and the payouts to creditors.

look at this link: http://www.moranlaw.net/failing-startup.htm

look here too: http://www.moranlaw.net/struggling.htm

The biz. is actually fine. Thats not the problem, my poor judgment in this last year is, 20+ years of responsibility and I went crazy over a 3 month period. Unbelievable. Sounds like I am better off letting the house go, pay minimum payments on the cards for a few years.