I have not filed ch7 yet, maybe plan to in mid-feb. About 2 months ago I bought a computer and used 0% program through Apple, which is really a CC with Barclay. I have paid the minimum payment for 2 months but I do plan to stop paying my unsecured debt to save for a legal defense. This is my computer and I am an IT Professional. Would a home computer be considered tools of the trade for an IT professional? (work issues me a laptop for work, but I do a fair amount of professional development, and off-work stuff on my home machine). Also do you think I need to pay more on this card, or that is going to be a bad thing that I charged this computer. Total on card is $3500 or so (computer and monitor)
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Does your state allow a tools of the trade exemption and if so, how much?
Personally, I'd stop paying all debt you wish to discharge. Worse case, Barclay files an AP {unlikely} and you either reaffirm this debt or, negotiate a settlement. -
Assuming that you have a tools of trade exemption, that only covers things that you own. The computer is still secured by your debt to Barclay. I would probably wait a few more months before filing and make the payments on the computer. At this point, they will have less grounds for an AP, but they still may try to get you to reaffirm, negotiate, or settle.
I filed BK in 2001 and I had a computer through Best Buy, which I think was HSBC. They threatened to come and get it, but never did. There is a big difference here though. My computer was a $400 e-machines that I had for more than a year, not a $3500 Apple that was just picked off the tree.Comment
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I doubt it will fly as a tool of the trade.
Does Barclay hold a security interest on the computer?Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -RickComment
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Its unsecured debt from what I understand, literally a credit card they mailed me.Originally posted by OhioFiler View Post
I am surprised a computer would not be considered tools of the trade for an IT Professional, anything I make happen is at a keyboard.Comment
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If you were self-employed it would be a tool of the trade. Your employer provides you a laptop for use off site.Originally posted by signal View Post
You can stop paying if you like and hope Barclay doesn't pursue the issue. I'd make a couple more payments if it were mine.Well, I did. Every one of 'em. Mostly I remember the last one. The wild finish. A guy standing on a station platform in the rain with a comical look in his face because his insides have been kicked out. -RickComment
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It is considered tool of trade if you are self employed is what I understand. I am a freelance writer and this is what I was told for my situation. However, if what you make happen is at another keyboard.....then it's not going to fly. But if it is not considered secured then you should not have a problem....it is best though to put as much time as possible between the purchase and the filing if you want to avoid an AP from the issuer claiming you knew at the time of purchase that you were planning to file BK.Comment
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You have the issue of high cost of this computer/monitor (you must have purchased top of the line with all the bells and whistles for that amount of money) and the timing of the purchase indicating to us that when you purchased it, you had the intention of filing Chapter 7 and including the card on which this compute/monitor was purchased which shows fraudulent intent.
When you investigate filing, you will have to list/explain all charges made within a certain period of time over a certain amount (usually $1,000, give or take and usually for a period of six months although it could go back to one year or more if fraud is suspected). Remember, creditors and trustees are not stupid and have seen it all. Be prepared to do some explaining._________________________________________
Filed 5 Year Chapter 13: April 2002
Early Buy-Out: April 2006
Discharge: August 2006
"A credit card is a snake in your pocket"Comment
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$3500 does seem high for a computer, but not when it's an overpriced Apple.Stopped Payings CC's: 8/14/2009 | Retained Attorney: 9/23/2009 | Filed CH 7: 12/7/2009 | 341 Meeting: 1/21/2010 - Complete | Discharged: 4/9/2010
"One person pretends to be rich, yet has nothing; another pretends to be poor, yet has great wealth."Comment
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I would pay for several more months before filing. 2 months min payment on a $3500 purchase could trigger an AP. 90 days before filing is the legal definition for "insolvent" for bk and it would difficult for you to prove that you didn't know you were insolvent when you charged the computer. I also think that $3500 could be considered a "luxury" computer when there are cheaper altnatives (I am just playing devil's advocate here, I am a mac person too.Originally posted by signal View Post
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You can't take a picture of this. It's already gone. ~~Nate, Six Feet UnderComment
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Time between purchase and filing is important. Almost more important then making any good faith payments. If you're filing 6 months from purchase-and it looks like you might be, this purchase will most likely not come up at all.Originally posted by signal View Post
If the the machine is secured, or repo-able, depends on if they issued you a Visa/MC that can be used at will, or used only at that vendor. If it's the later, it's most likely considered secured collateral. Regardless, in the end it will probably make no difference.No Asset 7 closed 11/09Comment
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Looks like you now have a $3500 asset the trustee may be interested in...Comment
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wait at least 2 more months, i'd wait 4 more. else it could be considered a luxury item bought while insolvent. don't risk it.
i don't think the computer is a $3500 asset at this point. nobody would pay that amount for a used machine.filed ch7 May 09
341 june 09
discharged, closed Aug 09
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My plan on that computer was to sell things to pay for it. I sold my old computer (also an apple) and a few peices of electronics. I knew i did not have the "money" to buy the computer which is why I was selling things to pay for it. I have almost all those things sold now.Comment
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if you have sold those things, then use the money to make a few more payments on this computer. then, after a few months, you can file.filed ch7 May 09
341 june 09
discharged, closed Aug 09Comment
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