will this be considered fraud in chptr 7

[guest]

Hi all,

glad i found this site....

This sounds a bit complicated but thx for hearing me out. we have a joint investment account worth about 20 k. Last month my wife opened a new bank a/c ( 8 K ) with money withdrwan from our joint investment a/c....This money was first deposited in our joint bank account. Then from this joint bank a/c she opened a individual bank a/c in a different bank for 8k to fund a invest a/c for herself ( with 7k ). so now i have abt 12k in our joint investment account.

Over the last 2 weeks my minimum payments on my credit cards ( abt 50k debt ) have incresed (due to chase ...well thats another story..) I have been laid of from the past 7 months and am finding it extremly difficult to pay the new minimums. After exhausting all my savings i now have to drwa money from my the joint investment a/c to cover our living expenses. Given the uncertainity in finding a job i have decided to file chapter 7 as a individual.

The only assests we have are a car worth 2k and the monies as above.

My state is not a commonwealth state so i am assuming my wifes accounts will be exempt from my bankruptcy filing.

But if i file as a individual will my wife opening a new bank a/c and a new investment a/c last month (with funding from our joint a/c ) be considered a fraud with intent to cheat.

If so can i overcome this situvation by waiting for some time before filing. I have money to survive till just about 3 to 4 months ( 12k)

Any and all advice is very much appreciated.

[Bandit]

it probably wont be seen as fraud but unless your states exemptions cover the cash, they just might take some of it from you.

I would be concerned about filing in just 3 months with those transactions because you will need to explain them under oath when they ask. It sounds like the 12K will be gone anyway and you just want your wife to be able to have something just in case. Maybe you can find a better way to protect the cash? Were there any big cash advances that you made recently?

Right now you still have options with some time. I would seek more than one attorneys advice by telephone, study the law so that you know your own case in every aspect so you make all the right choices along the way.

[guest]

Thanks for the reply. The last cash advance was for 15k in feb 2008. I had a balance trafer in May of this yearr from a high intrest to a low intrest card.

Yes i am thinking about going thru this process with the help of a attorney.

[Bandit]

You are past any problems for the 15K, I think, but depending on the amount of the recent transfer, they might look at that. I understand why you did the transfer, but Don't do any more big transfers. The older the debt the better. I would look for a way to protect some of your cash assets immediately since I dont know your state or the exemptions, using the suggestions of some attorneys. Maybe retirement account is better. At some point you will stop paying on your debts anyway, so think about this because it will be discharged and no sense in going down to your last dollar b4 filing if you dont have to.

[guest]

Hi all

Can anyone based on experience please comment on :

1. whether expenses and assests of both the spouses are to be disclosed with the individual a.c and joint a/c nank details of each spouse although only one will be filing chapetr 7 as a individual .

2. If so approximately how many prior months bank statements will need to be disclosed......i am confused if 3 or 6 months or there is no hard and fast rule...?

thankyou

[AngelinaCatHub]

I think you meant you are not in a community property state. However, if your wife works (what wife doesn't if you ask them) and contributes you must include. The house in also in her name?

I good suggestion is this, purchase the C7 book from Nolo press, nolo.com for about 17 Bucks download in pdf format. It prints about 200 pages with forms if you want a hard copy. It is full of info. Also, read all the "stickies" on the front of the C7 forum. They can answer many questions for you and you do not have to wait for a redundant answer. Welcome to the forum. 'Hub

[CCCrazy]

I have to chime in here since you brought up the Nolo Chpt. 7 book - it may be a great help to Pro Se filers but that book did nothing but scare the frickin' poop out of me with it's preaching about not getting discharged for too much shopping and blah blah blah. I did nothing but shop to the tune of 165K credit card debt and it was all discharged. If you're hiring a good attorney don't even bother with this book. It will do nothing but scare you.