trustee needs balance transfer statement

[minifry]

HI,
Just got back from 341 hearing today, trustee asked me if we had any recent balance transfers, I told her yes we transferred 6500.00 on July 11th 2009 (I was trying to make a higher interest payment more managable until I realized I would have to file anyway) and filed chapter 7 on Aug 25th 2009. she wants to see the CC statement showing this. My question is "Is this going to be trouble for me?"
Also I purchased a $500 computer in May from a major electronics store and they came to the hearing trying to get me to pay them 400 dollars on a payment plan. I told them no, so she took my information and home and work number, do you think they will start calling me about the computer??

thanks

[keepmine]

That BT is likely gonna bite you. Why in the world did you file bk a month form a large Bt? Look for the cc company to file an adverserial proceeding as well.
The electronics store can do nothing until your bk is disposed off. You are protected by the automatic stay.
Once discharged, they'll likely just abandon any claim. Nobody wants a used $500 computer.
What does your lawyer say?

[backtoschool]

HI,
Just got back from 341 hearing today, trustee asked me if we had any recent balance transfers, I told her yes we transferred 6500.00 on July 11th 2009 (I was trying to make a higher interest payment more managable until I realized I would have to file anyway) and filed chapter 7 on Aug 25th 2009. she wants to see the CC statement showing this. My question is "Is this going to be trouble for me?"
Also I purchased a $500 computer in May from a major electronics store and they came to the hearing trying to get me to pay them 400 dollars on a payment plan. I told them no, so she took my information and home and work number, do you think they will start calling me about the computer??

thanks

The balance transfer will be a problem. There is a rule of no cash advances more than $750 70 days before filing. It will be assumed that you knew you were insolvent when you did the balance transfer. So you will most likely be dismissed with a presumption of abuse.

The $500 computer may just squeak by, but it will be considered a "luxury" item. Any luxury items over $500 bought within 90 days of filing are also considered by definition abuse.

[justplaintired]

Do you have an attorney? I would recommend you speak with them about this. 3 months since you purchased the computer, it maybe they will ask for it back or agree to take payments. Balance transfer in that amount so soon to filing date isn't good. Especially that large of one. Provide the trustee with everything they asked for. That is a must. Then ask your attorney, they should have asked you about large purchases and balances transfers.

[minifry]

I had forgot to tell my attorney(well, his assistant) about the computer, but I definitely mentioned the balance transfer and even showed him the CC statement and asked if it would be ok to file so soon. He said it wouldn't be a problem, now i'm not so sure. Will they make me repay the the total balance on the card (11,000 dollars) or the BT amount(6500.00). I will have to make an app't Monday and discuss this with him.

[Chowder]

HI,
Just got back from 341 hearing today, trustee asked me if we had any recent balance transfers, I told her yes we transferred 6500.00 on July 11th 2009 (I was trying to make a higher interest payment more managable until I realized I would have to file anyway) and filed chapter 7 on Aug 25th 2009. she wants to see the CC statement showing this. My question is "Is this going to be trouble for me?"
Also I purchased a $500 computer in May from a major electronics store and they came to the hearing trying to get me to pay them 400 dollars on a payment plan. I told them no, so she took my information and home and work number, do you think they will start calling me about the computer??

thanks

I imagine the computer is considered a Purchase Money security. Meaning the computer can be repo'd. Doubt they will though, it can't be worth much in resale.

If the balance transfer check was written to another CC company, not your checking account. Then that would be more of a preferential payment. If so, it's not much of a concern.

[minifry]

yes the BT was from one CC to another to zero out one card (I wanted to have one combined bill, and a better interest rate.)I didn't get any extra cash out of the transfer.

[Chowder]

Then the trustee might nullify the payment. A problem for the payment recipient, not so much for you.

[2manybills]

This will have nothing to do with the UST filing a motion for presumption of abuse. This is more about the creditor filing an AP in which case that 6500 debt (only that one) may deemed not dischargeable. The key here is this, did the BT going directly to another creditor or did it go to your bank account and if so, can you prove that it was paid to another creditor.

[backtoschool]

This will have nothing to do with the UST filing a motion for presumption of abuse. This is more about the creditor filing an AP in which case that 6500 debt (only that one) may deemed not dischargeable. The key here is this, did the BT going directly to another creditor or did it go to your bank account and if so, can you prove that it was paid to another creditor.

You are absolutely correct. I wrote presumption of abuse, but was thinking in my head fraud in regards to an AP on the balance transfer and the purchase of the computer. Sometimes my fingers do not keep up with my head when I am typing.

[2manybills]

You are absolutely correct. I wrote presumption of abuse, but was thinking in my head fraud in regards to an AP on the balance transfer and the purchase of the computer. Sometimes my fingers do not keep up with my head when I am typing.

I know. You just don't want to unnecessarily freak people out.

[backtoschool]

I know. You just don't want to unnecessarily freak people out.

I totally agree.

[music12]

i agree with chowder. since the bt went to another creditor, then the two creditors can fight each other as to who should be the one to lose the money (the new card could ask the trustee to void the transfer or part of it) but you are in the clear. jmo.

[ready2puke]

I wouldn't worry too much about it either...the trustee will make the other cc pay for it..Not sure why a couple of folks on here are talking fraud or presumption of abuse.. Its considered preferrenial payment...Give the freakin' computer back if they bug you...but don't lose any sleep over this.. I know easier said than done..
take care...