How would you "plan" a bankruptcy?

[ready2puke]

One thing I don't think was mentioned yet and this is why I have to wait

If you had any balance transfers (lovingly known to us as BT's) you will have to make a couple payments at least before you stop paying your cc's. Otherwise it will look like you did it on purpose even tho you didn't.

You'll also have to wait at least 3 month from the last BT..sometimes longer as in my case...It was one year (geez louise I really didnt think I would make it ) from my last BT.. I have very large BT's due to a high credit score and the CC were making me offers I couldn't refuse. I would transfer bal to 0% interest for a year then do it again..Thinking I could dig outta this mess. It never works that way...
Good luck keep reading and keep us informed how your doing
Sharing is Caring

[banca rotta]

I have to disagree with Hub a bit. I'm new to the forum too and didn't understand the "BK planning." It has nothing to do with "fraud" but simply financial planning. But here's what I've figured out so far.

BK Planning 101
1. Understand the difference between Chapter 7 and 13.
BIG DIFFERENCE!

2. Understand the Means test (This is the difference between Chapter 7 or 13).
If you're under the median income then you can file Chapter 7 (usually people's first choice). If you're over the median income then you need to throughly understand the means test and in a sense "plan" to past it. Since "CMI" (Current Monthly Income) is the average of the prior 6 months before filing you need to understand how that one-time bonus could affect your means test. One month could make the difference of passing or failing. Income is only one example of the means test and planning.

3. Understand what exemptions you get, it varies from state to state. Some of you might actually lose property or have to pay the trustee.

4. Understand what preferential payments are and the consequences of transferring property to family members. Don't try to hide assets, that's what the trustee is looking for.

5. Figure out how BK is going to affect you....like is your current bank going to freeze your accounts because you owe them money (maybe time to change banks) or should you buy a new car before filing etc...

6. Understand presumption of abuse. Some districts are stricter than others. Some are willing to negotiate anything.

7. Meet with a lawyer, even if you choose not to use them you can get insight on how your district treats things. Ask for referrals here (that's what I did). If you keep reading you will learn that every district (or court) treats certain things differently, like Paypal Accounts.

8. Can you survive without credit. Meaning can you live on cash, your current income. If the answer is no then BK isn't going to help you.

9. Understand the process (filing, 341 meeting, 60 days to discharge, etc). The more informed you are the easier and less stressful its going to be.

Good Means test calculator...(mines prettier)

http://www.legalconsumer.com/bankruptcy/nolo/

Also....

http://www.nolo.com/article.cfm/objectId/8400442E-EEE8-4479-A8D109AFB7E2E9CA/catID/283B9600-ECC3-49ED-9D9A20A3E13F42E0/213/161/128/ART/

Again this is not fraud but simply planning. You know that saying, "No one plans to fail but ...."

Funny story....After paying all my credit cards last month over $800....I had an epiphany. I realized I was paying my credit cards so I could use them, "floating money." I realized this terrible cycle would never end and it was time to BK. If I would of known what I knew now, I would of saved that $800, instead of using my credit cards again. Hope this all makes sense.

You forgot to mention an important one, When you take out the $9000 cash advance or by the big screen TV or the cruise, for god sake don't file 91 days later actually thinking you are safe being outside the presumption period!!!!!

But seriously like our creditor bank friends we all make bad financial descisions and if you did any of the above and realize you made a bad choice try to pay it back as best as possible and put plenty of time in between the purchase and the filing.


Hey if everyone asked like the OP we can put the US Trustee out of business. LOL