Please, throw me a line.

[runforcover]

Does an apartment lease have to be reported in ch7? If so, does it have to be reaffirmed?

My soon to be defaulting cc is with the same bank as my checking account that has overdraft protection. Also,
my cc payment is auto drawn from my checking. Should I close the checking account to keep the bank from
paying itself out of overdraft funds?
Should I get an account summary prior to closing it? How far back?
Will the bank be able to do retrieve a summary even if the account is closed?

Should I open a new checking account at another bank so I can cash my checks.
Can I keep money in there safely
Do I need to report the new checking account? As it will be open 90+ days before I file ch7.

My car is no where near blue book value. So I suppose that even if I want to keep it, the judge probably will not
allow it. I am a courier. I use my car for work.
Should I purchase another car that is in good shape before I fall into default with my cc?
Should I stop payments on my current car?
Should I call gmac and tell them to come and get it.
Should I take the current car off my insurance when I get the other one?
Do I need to report car insurance?
Is there a "look back" in car insurance?
Would any of the "car" changes raise any flags?
I am guessing that this all has to take place 90+ days before I file, right?
Would it be helpful to get written estimates on the massive repairs needed on my current car?

[reeltrouble]

I'll answer at least the 1st one...

I'm sure it depends on your state, but I am in FL, and what our atty told me is that the leaseholder will be notified you filed, but you dont actually have to re-affirm, as long as you are current and plan to stay there.

I cant answer all the details on the rest, but YES on opening a new account. You 100% want to have a checking account at a bank you do not owe anything to. Otherwise, they can (and will) take as much of your deposits as they can up until filing, and from what I've heard, sometimes even afterwards, and it takes an act of Congress to get it back. I'd suggest trying a local credit union, thats where I moved my accounts to. Besides, if you establish a good relationship with a CU, they will be much more willing to lend to you down the road (house, car, etc) than one of the "big banks"

[StartingOver08]

Welcome to the Forum!

Does an apartment lease have to be reported in ch7? If so, does it have to be reaffirmed? Yes, the lease is reported under 'executory contracts' and there is some case law that it is automatically reaffirmed unless otherwise indicated in your petition. If you have sec deposits and other deposits (advance rent/last month) up with the Landlord, that must be indicated on the petition too. Your attorney can help you with this question and how it is handled in your district.

My soon to be defaulting cc is with the same bank as my checking account that has overdraft protection. Also,
my cc payment is auto drawn from my checking. Should I close the checking account to keep the bank from
paying itself out of overdraft funds? Yes, close your accounts with this bank. Move your accounts to a new neutral bank with no attached debt (cc's or LOC's).
Should I get an account summary prior to closing it? How far back? I would download each and every bank statment to your hard drive for the past 2 yrs. Don't print a copy of the statements until you need to provide them. Some districts require 6 mths, some more. Some do not require bank statements. If you do not download a copy and you need one, then it probably will cost you money and time to get copies from the bank. Its best to have the info and not need it than the other way around.
Will the bank be able to do retrieve a summary even if the account is closed?Yes, but it will cost you on a per page basis. Check the banks fee sheet so you are aware. Some of the banks are not that cooperative too.

Should I open a new checking account at another bank so I can cash my checks. Yes.
Can I keep money in there safelyDepends upon the bank. Stay away from Wells Fargo and BOA. Better to be at a local bank or a CU. Check the board here to see some of the story's.
Do I need to report the new checking account? As it will be open 90+ days before I file ch7.Yes. You will need to report both the old and the new accounts.

My car is no where near blue book value. So I suppose that even if I want to keep it, the judge probably will not
allow it. I am a courier. I use my car for work.
Should I purchase another car that is in good shape before I fall into default with my cc?This question can't be answered without knowing a lot more information. Do you have equity in the car? Are you current on the payments? If you are upside down, what is the estimated value and the amount owed?
Should I stop payments on my current car? This depends upon what you plan to do with the car: reaffirm, redeem or surrender. You need to make a decision on what you are going to give up in the BK and what you are going to keep. Part of this involves figuring out what your new post BK living budget will be before you file.
Should I call gmac and tell them to come and get it.
Should I take the current car off my insurance when I get the other one?
Do I need to report car insurance?
Is there a "look back" in car insurance?
Would any of the "car" changes raise any flags?
I am guessing that this all has to take place 90+ days before I file, right?
Would it be helpful to get written estimates on the massive repairs needed on my current car?

If your car needs massive repairs, then get a quote on the repairs. Or you can get an independent car appraisal which will value the car in its current condition.

In which state are you located?

Have you interviewed any attorney's yet? It is a good idea to speak with several BK attorney's about your specific situation so you can best plan for your BK.

Welcome to the forum!

[hamburgervol]

I would think you would want to keep insurance on the car as long as you have possession of it.

[runforcover]

Thanx for your answers

I live in Nashville. In regards to my car, It is a 2006 Chevy HHR. It has 140,000 miles, I am upside down 4k, I owe 16k. It needs bearings, struts and shocks , tie rods, tires, windshield and a good car wash. The engine is strong but the engine light keeps coming on. Occasionally, the auto trans. slams thru the gears. hard. So I stop and shut off the engine, wait a minute and start her up. Then the trans.works well. Gmac has never been able to correct the engine light or the trans.. All the other issues happened in a dominoe effect and it all happened within a couple of months. It was one of the silver bullets, if you catch my meaning.
It is getting tough out there in job land. I use my car for work. I am a courier. I can't just change jobs.
There is something that still concerning me. I read that any large monetary activity 3 months prior to filing ch7 will cause serious issues with the trustee. So, I understand that. It don't make sense. It presumes that everyone is a potential dirtbag and well, we are not.
Here is my concern. If it is so about the judge not willing to let me keep such a travesty of a car. I still need a car, a good one. Will it be looked upon as a bad thing to get one 3 months before I file and at the same time either just stop making payments or tell gmac to repo the HHR? All I am trying to do is slam on the brakes before I hit the wall.
I am current with the HHR. In fact, In 20 years I have never missed a payment on anything.
My second silver bullet came as 1% interest checks from my bank. I used them to try and fix things. What I should have known was that the bank set those loans ahead of my higher interest loan. A loan I can't touch till I pay off all the low % loans. Ok, so maybe some folks are dirtbags.

[StartingOver08]

The 1% checks - did you use them as cash advances? When was the last time you did a cash advance or a balance transfer? Is this the large cash transaction you are talking about now?

It sounds like you need to get a newer working vehicle before you file. It is easier to get one before you file then after, but if you are not able to finance a vehicle now, wait until you are discharged. Based on your description of your current car, I would surrender it in the BK.

[TEW]

I live in Nashville. In regards to my car, It is a 2006 Chevy HHR. It has 140,000 miles, I am upside down 4k, I owe 16k. It needs bearings, struts and shocks , tie rods, tires, windshield and a good car wash. The engine is strong but the engine light keeps coming on. Occasionally, the auto trans. slams thru the gears. hard. So I stop and shut off the engine, wait a minute and start her up. Then the trans.works well. Gmac has never been able to correct the engine light or the trans.. All the other issues happened in a dominoe effect and it all happened within a couple of months. It was one of the silver bullets, if you catch my meaning.
It is getting tough out there in job land. I use my car for work. I am a courier. I can't just change jobs.
There is something that still concerning me. I read that any large monetary activity 3 months prior to filing ch7 will cause serious issues with the trustee. Not really if you need a car and can get a loan go for it. make sure the loan is profected before you fileSo, I understand that. It don't make sense. It presumes that everyone is a potential dirtbag and well, we are not.
Here is my concern. If it is so about the judge not willing to let me keep such a travesty of a car. I still need a car, a good one. Will it be looked upon as a bad thing to get one 3 months before I file and at the same time either just stop making payments or tell gmac to repo the HHR? All I am trying to do is slam on the brakes before I hit the wall.
I am current with the HHR. In fact, In 20 years I have never missed a payment on anything.
My second silver bullet came as 1% interest checks from my bank. I used them to try and fix things. What I should have known was that the bank set those loans ahead of my higher interest loan. A loan I can't touch till I pay off all the low % loans. Ok, so maybe some folks are dirtbags.

BK is about a fresh start things are not as bleak as they appear.

[runforcover]

the 1% checks

The 1% checks came twice...once during the gas crisis, where I was paying $50 every two days for gas and once about a month ago. Some of it was used to help with general expenses and some was used to bring a higher rate cc down. It all helped at first. Then the HHR turned into a unexpected issue and the money I sent to my cc had no effect on my payment. That is when I found out. Even when I spoke with the bank, they would not let me put money on the high interest loan nor would they lower that interest rate. They stated that it is a new day and they would not do anything. The fellow I spoke with basically said I was an idiot for not knowing. Which I replied that I have a guitar center cc that lets me put money wherever I want on the various purchase deals I have and that, had been my experience, up till now.
So the 1% checks wound up serving the bank with interest rate profits and binding me to a very high risk situation.
This is becoming all a bit numbing. Like when you enter an intersection and out of nowhere a car slams into you. I am not sure if I could have played the hand differently.
But it does seem like that more than a few institutions are hitting the reset button. I feel really bad about the ch7 if that is what I do. But maybe now is the time for me to hit a reset button. Turn off my phone and wait for the all clear signal.
Maybe I will look for a car this week.

[StartingOver08]

Make sure you have a min of 90 days at least from the last cash advance before you file.

Once you get this planned you will feel better.

[runforcover]

Somewhat confused

I have read that folks are stopping payments on their cc. I just read a thread from HHR that says if I want to protect myself from creditor objections, I should make 3 payments and stop using the card at least 90 days before filing. I understand the 90 day thing. But which is it? Should I pay cc or not. I need to save for an attorney.

Also, what of gifts I purchased on cc? They were few a far in between and not expensive?

I sometimes think it better to just default on cc. Wait 4 months, then finally answer the phone. Settle for half with promises in writing to keep it off my credit score and that when the deal is done, the deal is done.

[StartingOver08]

Well, settlement is a viable option too.

Some of us could not settle because of the size of the debt and the overall financial situation. If you can settle, do so. Remember to keep in mind the amount of taxes that will be due on your forgiven debt. You will have a 1099 for the amount forgiven provided by the creditor to the IRS.

Make sure to get any arrangement from the creditor in writing - verbal agreements are not enforceable.

[runforcover]

Maybe a plan?

I was told that when I have a plan I would feel better. Well, maybe I do have a plan and feel better..
I will state my plan. If anyone sees a flaw, I would really like to know about it.
My car has had 3+ thousand in repairs and needs 3 thousand more. I owe 16k. It is partially the blame for my situation. I used a convenience check from my cc to try to fix my debt. Hey, if the gov. can do it. Anyway, that was a couple of weeks ago. It did not work...Here is my plan.
1. Make one more payment on my cc and car, turn off water heater and buy potted meat.
2. Get a record of my previous years checking account activity. After I do that, close my checking account and change my phone number.
3. Finance a used car under 10k
4. Default on cc and car.
5. Clean out car and wait for the repo man.
6. Save money to hire legal assistance.
7. 60 days in I will start calling attorneys. I think I meet the means test for Tennessee which is $37,702. I made 31k last year. So I think I have a no assets case.
8. Take my on-line finance classes. https://www.startfreshtoday.com/cons...ounseling.aspx
9. 90+ days out from my last payment and 120 days out from my last cc activity and using this checklist http://www.rothschildbklaw.com/CM/Custom/checklist.pdf I file.
10. Make sure I get the 1099s from my creditors so I can file the proper taxes the next year.

Am I missing anything?

Would it be better to wait to file after my creditors sell off the accounts?
Would they have any say at the 341 meeting then?
If not, what could the collection agencies say?

I can't be garnished because I am a sub contractor. I work as a private courier. Basically, the way I pay taxes is through gasoline. I buy a tank every two days. By the time I deduct 37 cents a mile, I zero out my tax obligations.
I am my own employer. I would have to garnish myself.
Yea, I am associated with a company but they are not technically an employer. I work with them, not for them. They just get a piece of my action.

[doingpoorly]

10. Make sure I get the 1099s from my creditors so I can file the proper taxes the next year.


Why would you need to do number 10?

[BkinTX]

Your attorney may have a specific credit counseling course s/he wants you to use.

[eddiep]

re closing account
1. open new account
2. move money to new account
3. stop autopayments
4. get statements
5. close old account

What the heck is potted meat?!!! and why are you shutting off water heater?