Well, we are starting the process of possibly filing a Chapter 7 bankruptcy. We have nearly 100K in debt, stemming from some bad business decisions and a lot from nearly a year without income.
I met with a bankruptcy attorney a week ago, and started to feel really good about the possibility of a life without drowning in debt. But, some things have to be taken care of before we can file. I think most of these are assumptions, so if someone can check my assumptions and clear them up, that would be super!
First, we had some recurring monthly charges on a credit card. I've now changed those items to a debit card, but do I have to wait 90 days past the last charge in order to file?
Second, what happens to credit cards that are fully paid off and still showing positive credit lines with 0 balance with you file? Do you keep the positive trade lines?
Third, we owe my parents about $500, which we can easily pay off if we aren't paying all the other credit cards. Would this be seen as "preferential payment", and if so, how long between that final payoff and filing is reasonable? Or, am I able to purchase a money order and send that, and does that raise red flags?
Fourth, do ATM withdrawals raise red flags?
Fifth, we plan to keep the house and the car, as we are current on both. If I continue paying on them, but not on the unsecured debt, is that seen as preferential payment?
Sixth, should I get my own appraisal done for my house, so that I know what to state for a value?
Thanks so much! I've been lurking here for a while, and am happy to join a community that seems to really understand what life is like when you are facing bankruptcy.
KBB
I met with a bankruptcy attorney a week ago, and started to feel really good about the possibility of a life without drowning in debt. But, some things have to be taken care of before we can file. I think most of these are assumptions, so if someone can check my assumptions and clear them up, that would be super!
First, we had some recurring monthly charges on a credit card. I've now changed those items to a debit card, but do I have to wait 90 days past the last charge in order to file?
Second, what happens to credit cards that are fully paid off and still showing positive credit lines with 0 balance with you file? Do you keep the positive trade lines?
Third, we owe my parents about $500, which we can easily pay off if we aren't paying all the other credit cards. Would this be seen as "preferential payment", and if so, how long between that final payoff and filing is reasonable? Or, am I able to purchase a money order and send that, and does that raise red flags?
Fourth, do ATM withdrawals raise red flags?
Fifth, we plan to keep the house and the car, as we are current on both. If I continue paying on them, but not on the unsecured debt, is that seen as preferential payment?
Sixth, should I get my own appraisal done for my house, so that I know what to state for a value?
Thanks so much! I've been lurking here for a while, and am happy to join a community that seems to really understand what life is like when you are facing bankruptcy.
KBB