I told CC I was doing BK but had recent charge....

[Kansas1960]

I don't know if I messed up but I told most my CC the last few days I was doing chapter 7 and gave them my attorneys name. I just realized that 90 days has not passed since my last charge. Is this going to be a problem that I told them I was planning a chapter 7 since my last charge was mid April?

[Rick9972]

My attorney told me that charges are not a problem as long as they are small and are for common things like gas, food, etc. No diamond rings, fur coats, $100 each meals, cash advance etc.

[canusaybroke]

My attorney told me that charges are not a problem as long as they are small and are for common things like gas, food, etc. No diamond rings, fur coats, $100 each meals, cash advance etc.

Ditto......we charged up till last month....and lawyer says no prob cause it is for gas, food etc.....no 56 inch plasmas.....

[Amy26]

I think I'm going to have an issue with 2 of my credit cards... I just decided that bankruptcy was probably my best option a few days ago and a month or so ago I moved some credit card money around to get better interest rates... so I did balance transfers to my discover cards... I assume this will be a problem?

[Kansas1960]

What I am really wanting to know is this....By telling them of my intentions to file chapter 7 and my last charge was about 55 days ago does that give them information to use against me as to what my intentions were? Can they say since you informed us of you intentions 55 days since the last charge it does not matter that you actually waited over 90 days to file. Anyone know anything about this? My attorney is fresh out of law school and in training at the law firm I selected and he does not know any questions I ask him so he takes a very long time to get back to me since he has to ask the person training him. I swear I know more about BK than this guy. I think I am his first case. I guess he took my case over after my second meeting with the "real" attorney.

[justbroke]

All you say is... prove it. Proving fraud is difficult and you were honest. The charges were many days (almost 60 days) from when you told them. Nothing wrong with that. And, if the amounts are not significant (over about $600 in aggregate), don't even worry about it.

The specific law on this deals with "presumption" of non-dischargeability (that 90-day thing), and that's when you file... not when you decided to stop using credit cards. Anything else must be proven. If you had made some payments on that card too... they won't be able to say anything.

Having wrote that... if you charged $1,000 and then never made one payment and then filed Bankruptcy... you may be questioned and challenged. Other than that... don't worry about it. Make sure your "junior lawyer" has his work reviewed by a Senior Partner.

[liz417]

I think I'm going to have an issue with 2 of my credit cards... I just decided that bankruptcy was probably my best option a few days ago and a month or so ago I moved some credit card money around to get better interest rates... so I did balance transfers to my discover cards... I assume this will be a problem?

I would hold off as long as you can to file. You should have a least 6 months of no activity on your cards before you file.

[Amy26]

I cannot wait, if I wait then I will have to file 13. I have to file now and as many people mentioned you don't have to have 6 months of inactivity on the cards.

[liz417]

I cannot wait, if I wait then I will have to file 13. I have to file now and as many people mentioned you don't have to have 6 months of inactivity on the cards.

Then if you can't wait, you can't wait...file now if you need to. Have you made any monthly min. on these cards with the BTs? The worst that can happen is that the creditor can object and you and your attorney can take it from there.

Good Luck!

On Ch 7 sticky posted by HHM:Why might a creditor object?

As stated earlier, the exceptions to discharge are listed in Section 523(a) of the BK code. Specifically, your typical unsecured creditor would object using Section 523(a)(2), but that section contains several different types of non-dischcargeable debt.

1. $500 owing to a single creditor for the purchase of "luxury" goods within 90 days prior to filing BK.
2. $750 owing to a single creditor for a cash advance (i.e. balance transfers are cash advances) obtained within 70 days prior to filing BK.
The above two rules are known as the per-se rules. The creditor need not prove intent (i.e. fraud), only that the transactions meet the criteria stated. If you have been reading this forum at all, these rules are known and the infamous 70/90 day rules.

3. For money obtained under false pretenses, false representation, or actual fraud. Basically, what that means is that you (1) made the charges/cash advances knowing you were going to file BK (2) made the charges/cash advances while insolvent and/or could not have had a reasonable expectation that you could pay back the debt.

[DeadManCrawling]

Also, remember the person you spoke with was a low level minion, not exactly in the brain-trust category if they were calling you or answering your call.

My bet is they barely know how to run the computer system and wouldn't know a Chapter 7 from the local Chapter of Veterans Of Foreign Wars.

No need to worry, they probably drifted off to a stupor somewhere between the time you said "hello" and they asked your name.

I doubt this will mean anything.

[Amy26]

Then if you can't wait, you can't wait...file now if you need to. Have you made any monthly min. on these cards with the BTs? The worst that can happen is that the creditor can object and you and your attorney can take it from there.

Good Luck!

On Ch 7 sticky posted by HHM:Why might a creditor object?

As stated earlier, the exceptions to discharge are listed in Section 523(a) of the BK code. Specifically, your typical unsecured creditor would object using Section 523(a)(2), but that section contains several different types of non-dischcargeable debt.

1. $500 owing to a single creditor for the purchase of "luxury" goods within 90 days prior to filing BK.
2. $750 owing to a single creditor for a cash advance (i.e. balance transfers are cash advances) obtained within 70 days prior to filing BK.
The above two rules are known as the per-se rules. The creditor need not prove intent (i.e. fraud), only that the transactions meet the criteria stated. If you have been reading this forum at all, these rules are known and the infamous 70/90 day rules.

3. For money obtained under false pretenses, false representation, or actual fraud. Basically, what that means is that you (1) made the charges/cash advances knowing you were going to file BK (2) made the charges/cash advances while insolvent and/or could not have had a reasonable expectation that you could pay back the debt.

Gotchya thanks... I kinda hijacked this thread! LOL so I'll stop now. I have made payments on these two balance transfers. They weren't even balance transfers that I took out to myself I just moved it from a higher rate card to an intro rate on these. The transfer was done on 3/9 so if I don't file until 6/9, then that's three months. I've already made 2 payments on one of them and then the other I have made one payment 5/1 and then one is actually going through on 6/1 because I couldn't cancel it.

[Confused33]

I bought a freaking $5600 motorcycle on a credit card 20 days prior to filing CH7.

It got discharged.

DON'T WORRY!!

[liz417]

Gotchya thanks... I kinda hijacked this thread! LOL so I'll stop now. I have made payments on these two balance transfers. They weren't even balance transfers that I took out to myself I just moved it from a higher rate card to an intro rate on these. The transfer was done on 3/9 so if I don't file until 6/9, then that's three months. I've already made 2 payments on one of them and then the other I have made one payment 5/1 and then one is actually going through on 6/1 because I couldn't cancel it.

Then you should be fine, everyone "moves" money around trying to keep their head above water before they finally come to the conclusion that they need to file BK. At least you've made a couple of payments, that's good, that shows that you had the "intention" of trying to pay back the cc at the time of the BT. Now it would be up to the creditors to "prove" that you didn't intend to pay (fraud) at the time...and that can be very hard.

Hang in there.

[liz417]

I bought a freaking $5600 motorcycle on a credit card 20 days prior to filing CH7.

It got discharged.

DON'T WORRY!!

Wow! Really? LOL!!

[Stilltheone]

We charged an entire Disney vacation 60 days befoe filing, charged $600 worth of tires 2 weeks before filing (AFTER seeing the lawyer), took out actual loans less than 90 days proior to filing for furniture, around $3K.

You should be fine!