90/70 - questionable charges

[ace13]

Hoping those with experience can share the same with me... I am new to this forum but have been reading for weeks. I have not yet filed chap 7 yet but have completed my paperwork for my attorney. I am concerned because I have two separate loans with my cu which were acquired over 90 days ago but less than six months. Neither for luxury items. Made some payments on the 9000 loan -two pymt at 200each. No payments on 2000 line of credit becuz they were deferred til November. I didn't even apply for the line of credit -it's a long story.

The 9000 loan was for a new furnace and I have receipts.

Can those of u with charges inside and outside the 90/70 share your outcomes. I'm starting to freak out about objections. Thanks!!!

[ace13]

Does anyone have any thoughts??? Help pls...

[DeadManCrawling]

Credit unions are notorious on this forum. Have you read all the recent posts about cross-collateralization?

Do you have other accounts there, like checking or savings, or any investment accounts? These could cause problems.

CU's seem, in general, more likely to challenge purchases than other creditors.

[2manybills]

I would think that the furnace would be considering for your home and necessary, but I may be wrong. Just try to put as much time between the b/t's to the time you file. The more time the better.

[ace13]

thanks deadmancrawling...had savings with cu but balance is five bucks...they can have it!! I'm concerned cuz i'm outside 90 but less than 6 mo. I am worried bout cu objecting but I had no choice on the furnace

[covinian]

ace123 I'm curious about your 9000k loan. You said it's more than 3 months but less than 6 months ago and that you made 2 payments. How long ago was your last payment? See that is/was my question too. I charged $1k on my credit card in June (so 4 months ago), made June and July min payments and stopped paying in August. My atty via an email question said that maybe pay them a small amount for the next 2 months and then stop, just to show an effort, but not to pay more than $600 three months before filing. I plan on filing in December sometime so that would be 6 months from the charge. He did also say that if the creditor disputed the charge then we could come up with some type of negotiation to pay the $1k back over 12 months at no interest (or something like that).

[ace13]

My last pymt was august...two months punts made...200each pymt. I don't have a date we r filing yet...I tried to keep paying everything but this single mom can't any more. I'm waiting to hear from arty. I thought of sending a small pymt to cu...what do u think?

[covinian]

from what i've read and been told now, it would be a good idea. even if it's just $25. It shows an effort. I hate the thought of "throwing money away" since the debt will be bk'd, but I think it's better to be safe than sorry. That's what I'm going to do anyway....for what it's worth =)

[ace13]

Thanks for the info all...I asked my atty about sending a pymt and he advised not to so I don't know what to do. He said it's just throwing moneyaway but of course not to him cuz if they object it's money in his pocket.

Curious if others have further input that have "been there done that". Like I said the money was for a furnace...not a spending spree. I hope consideration is given to that should there be any objections

thanks for listening

[jribe]

well; even thought it's not a luxury purchase it could still be objected to..

To alleviate some of that - i agree with others that said to send in small payments. Send $10 a month for the next 2-3 months. Is that affordable for you?

I did that myself as my husband had a larger charge for work supplies (about 5k) and at first we could keep up with the payments- then they almost double the interest rates. I think i made 2 regular payments on it; and then sent them small payments for about 3 months. It showed an effort- and if it's asked about - we have a good reason for what we did..

Good luck

[ace13]

The cu has been calling daily along with my other creditors...imagine that! Do u think I should tell them I'm filing for chapter 7 in the near future or just ignore their calls? I feel terrible about all of this. I have never been late since I acuired credit more than 18 years ago!!! This is all new to me. To top it off my ex husband just filed for chapter 13 and I got notice due to the child support obligation

my atty seems to think we may have to include ex as a creditor as the divorce agreement required ex to pay certain marital debts. BUT those debts are in ex name solely. He had to refi them as part of divorce agreement and did. They are closed and satisfied on my credit report. Does anyone have opinion on this?? My atty still reviewing my file but thought it wouldn't hurt to ask you all. Thanks

[backtoschool]

A 9k purchase made less than a year before filing with a loan from a CU could trigger an AP. CU's often even show up to 341's and in this case the cost of the AP would be less than the transfer. (It costs about 5k to fight an AP in court). I think the CU will object to the dischargeability of that debt. The longer you wait to file the better your case is that the furnace was a necessity and you didn't know you were insolvent at the time you bought it.

[covinian]

backtoschool - I have a question for you...in your response you said "a purchase made less than a year before filing" ... why would they look at a year back? I thought it was 90 days?? I honestly don't know what I charged 9 months ago (I'll have to look at my statements). How far back to the CC companies look? Thanks!

[ace13]

Thanks backtoschool...do u think I should continue making small punts until I file. August was my last pymt to the cu. I really can't afford the pymt but maybe 10-20 a mo til filing???

[backtoschool]

backtoschool - I have a question for you...in your response you said "a purchase made less than a year before filing" ... why would they look at a year back? I thought it was 90 days?? I honestly don't know what I charged 9 months ago (I'll have to look at my statements). How far back to the CC companies look? Thanks!

90 days is the legal definition, but a creditor can file an AP for any reason or object to the dischargeablity of their debt if they think they can win.

It costs on average 5k to fight an AP in court. CU's are notoriously cranky when it comes to bk. At my 341 there were 3 CU's that showed up for various creditors. I don't want to be alarmist by any means, but the general rule of thumb is to put as much time between you and a large cash advance or loan as possible. I think small payments on the loan will avoid the AP in the OP's case.