I'm not sure what to do, or exactly what some of this stuff means, so bear with me! I just started reading up on this a few weeks ago.
I have a checking and savings account with US Bank. They offered me a "Reserve Line of Credit" of about $800, which is currently maxed out.
They also offered me a "Checking Account Advance" line of $500, which is basically a payday loan where you borrow up to $500 and pay back the borrowed amount PLUS $10 for every $100 as soon as you do a direct deposit of $100 or more. You guessed it, I've been borrowing $500 and paying back $550 TWICE a month for quite some time. I just can't seem to get caught up on it and stay caught up. There's always something that comes up and I need to borrow the money again.
So my first question is, would the $1300-$1400 I owe them be counted in a Chapter 7? If so, since I have my paycheck direct deposited there, I'm assuming I need to move that to another bank asap before filing, right?
My next question involves a 2 year old car on which we are upside down by about $8 grand. IF we should decide to keep the car, what is this 722 thing all about? Is it only offered through US Bank? And if so, I don't suppose they would work with us if we just shafted them from my credit lines, right?
So, IF we decide to keep the car, and IF this 722 thing is a good way to go, should I try to pay off what I owe US Bank before we even file?
My personal vote would be to walk away from the stupid car--the payments plus insurance, gas, and registration are probably costing us up to $700 a month. I'm just not sure if my spouse will be willing to let it go since our other car is on its last leg.
Any thoughts?
I have a checking and savings account with US Bank. They offered me a "Reserve Line of Credit" of about $800, which is currently maxed out.
They also offered me a "Checking Account Advance" line of $500, which is basically a payday loan where you borrow up to $500 and pay back the borrowed amount PLUS $10 for every $100 as soon as you do a direct deposit of $100 or more. You guessed it, I've been borrowing $500 and paying back $550 TWICE a month for quite some time. I just can't seem to get caught up on it and stay caught up. There's always something that comes up and I need to borrow the money again.
So my first question is, would the $1300-$1400 I owe them be counted in a Chapter 7? If so, since I have my paycheck direct deposited there, I'm assuming I need to move that to another bank asap before filing, right?
My next question involves a 2 year old car on which we are upside down by about $8 grand. IF we should decide to keep the car, what is this 722 thing all about? Is it only offered through US Bank? And if so, I don't suppose they would work with us if we just shafted them from my credit lines, right?
So, IF we decide to keep the car, and IF this 722 thing is a good way to go, should I try to pay off what I owe US Bank before we even file?
My personal vote would be to walk away from the stupid car--the payments plus insurance, gas, and registration are probably costing us up to $700 a month. I'm just not sure if my spouse will be willing to let it go since our other car is on its last leg.
Any thoughts?
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