Correct me if I'm wrong...

[GWBcasualty]

...but I think a lot of people is stressing too much over these four points.

1) It doesn't matter if you have money in your account to pay your minimums. You can decide to stop paying and use the cash on exempt items (or exempt it all together if your State allows it - CA system 2 for example).

2) It doesn't matter how much debt you have as long as it's not over the law limits. If you are under the median or pass the means test, $10k or $200k is the same, it gets discharged. If you have DMI, than you will pay that amount in a Ch. 13 and AGAIN the amount is solely determined by your DMI, not by the total amount you owe.

3) It doesn't matter how/when/why you accumulated the debt. As long as you are not guilty of fraud (you would know it if you were...) the debt will be discharged. Just stop charging 90-180 days before filing.

4) Preferential payments cannot, will not, be held against you. The law states that is NOT wrong for a debtor to pay one debt over another. Preferential payments can create problems to the creditor receiving them.

[AngelinaCatHub]

...but I think a lot of people is stressing too much over these four points.

1) It doesn't matter if you have money in your account to pay your minimums. You can decide to stop paying and use the cash on exempt items (or exempt it all together if your State allows it - CA system 2 for example).

2) It doesn't matter how much debt you have as long as it's not over the law limits. If you are under the median or pass the means test, $10k or $200k is the same, it gets discharged. If you have DMI, than you will pay that amount in a Ch. 13 and AGAIN the amount is solely determined by your DMI, not by the total amount you owe.

3) It doesn't matter how/when/why you accumulated the debt. As long as you are not guilty of fraud (you would know it if you were...) the debt will be discharged. Just stop charging 90-180 days before filing.

4) Preferential payments cannot, will not, be held against you. The law states that is NOT wrong for a debtor to pay one debt over another. Preferential payments can create problems to the creditor receiving them.

Very good post. I disagree in part and agree in part with number four. If your preferential payment was to a friend, or relative (now an insider payment) that would hurt you in the respect of having them damaged. I was guilty of this and petitioned my Trustee to allow me to pay the insider payment back to my estate. He was agreeable and compromised a lower amount and gave me time to do this. It cost me twice, but you are basically right, the creditor would be hurt.

Thank you for the great words. 'Hub

[GWBcasualty]

Very good post. I disagree in part and agree in part with number four. If your preferential payment was to a friend, or relative (now an insider payment) that would hurt you in the respect of having them damaged. I was guilty of this and petitioned my Trustee to allow me to pay the insider payment back to my estate. He was agreeable and compromised a lower amount and gave me time to do this. It cost me twice, but you are basically right, the creditor would be hurt.

Thank you for the great words. 'Hub

Correct!!! I was referring to payment to regular creditors not to insiders, but it could have been misleading as I was not specific.