Finally decided on what i'm going to do :)

[CCA1984]

Hello to everyone

first Happy thanksgiving to you and your family. And a big thank you to this site and all the members for the advice.

I have finally decided that I am going to file CH7. I had a consultation last month and decided it was the right choice for me and my fiance. I am going to be filing myself not her so were ok there. I planned on filing originally in february- march, but I have post dated it until may-june. The reason why is in october i made a couple purchases with my card ( i.e gas,food,utilities etc.) and have always paid my cards on time. I am going to pay back the amount that i spent ( i want to make sure i'm not looked at as someone trying to pull anything shady). I know its a while away but I had to let everyone know on here who have helped. I was also going to file my taxes early in february and use my refund to pay off some debt. I was curious if there would be anything you guys would recommend? again thanks to everyone, i know its still far away but this process has been a little nerve racking. Happy thanksgiving to all

[CCA1984]

any recommendations ?

[keepmine]

Why would you use a tax refund to payoff debt that would be discharged in a bk?

[Meatstick]

Give it time, there is less than 1 hour between your original post and your follow-up. I have posted a few questions here and neither one ever got a response.

With those small charges you made in October I wouldn't worry at all about filing in Feb/Mar timeframe. As long as you havent made any major purchases or taken any cash advances you would be past 90 days since last charges. I also was always on time with my CC payments but after consulting a lawyer he told me to stop paying immediately all we were doing was feeding the monster. You mentioned filing your income tax return. My lawyer advised us to wait to file Ch7 until after we filed and got back our 2009 return. He said we can use it on exempt items and things like paying rent and utilities ahead, dental work and auto repairs. We will have a rather large amount $6k-$9k so I don't think we will be able t spend all of it. Whatever is left over will go to the BK courts I suppose and then maybe a portion of our 2010 return when filed.

If your filing Ch7 I wouldn't use your tax return to pay any of that debt. Use it to your advantage instead of paying on debts that will likely be wiped.

Good luck;

Meatstick

[LimpDisc]

any recommendations ?

I'd ask the same question that's already posted about using your tax refund for paying debt. Exempt the tax refund if possible. Just doesn't make sense to give your creditors that money.

[CCA1984]

Why would you use a tax refund to payoff debt that would be discharged in a bk?

Thanks keepmine for the reposonse. I wanted to use my refund to pay off the debt that i charged and make sure that i was in good standing ( even though im going to be filing) but wasn't sure if i let it go and use my refund for rent,car repairs etc. .... sorry for any confusion

[CCA1984]

Give it time, there is less than 1 hour between your original post and your follow-up. I have posted a few questions here and neither one ever got a response.

With those small charges you made in October I wouldn't worry at all about filing in Feb/Mar timeframe. As long as you havent made any major purchases or taken any cash advances you would be past 90 days since last charges. I also was always on time with my CC payments but after consulting a lawyer he told me to stop paying immediately all we were doing was feeding the monster. You mentioned filing your income tax return. My lawyer advised us to wait to file Ch7 until after we filed and got back our 2009 return. He said we can use it on exempt items and things like paying rent and utilities ahead, dental work and auto repairs. We will have a rather large amount $6k-$9k so I don't think we will be able t spend all of it. Whatever is left over will go to the BK courts I suppose and then maybe a portion of our 2010 return when filed.

If your filing Ch7 I wouldn't use your tax return to pay any of that debt. Use it to your advantage instead of paying on debts that will likely be wiped.

Good luck;

Meatstick

Hey Meat, thank you for the response I appreciate it big time. The little purchases were around 1k for the month of october including a $700 purchase for ruining a customers handbag ( literally destroyed it). I plan on paying it back thats why i wanted to wait to file, I didn't want to be looked at as someone trying to pull fraud or anything shady. With that given do you think I would be ok ? thanks again

[CCA1984]

I'd ask the same question that's already posted about using your tax refund for paying debt. Exempt the tax refund if possible. Just doesn't make sense to give your creditors that money.

LP thanks for the response, from what i've been reading online is that I should exempt it to make sure I am going to be ok. I am going to claim the equity in my house and protect it. Just want to make sure I can protect my house and car ( no late payments on either) . thanks again guys and gals and happy holidays

[Meatstick]

Hey Meat, thank you for the response I appreciate it big time. The little purchases were around 1k for the month of october including a $700 purchase for ruining a customers handbag ( literally destroyed it). I plan on paying it back thats why i wanted to wait to file, I didn't want to be looked at as someone trying to pull fraud or anything shady. With that given do you think I would be ok ? thanks again

The $700 charge may be brought up but its so hard to say for sure. I am sure your attorney will be able to advise that one.



Meatstick

[frogger]

Good standing won't be hanging around when you file. Do what you need to do. This is a business decision, not a feel good one.

Good luck.

[LimpDisc]

If you pay off that creditor with your tax refund for $1000 and file shortly after the trustee go after that money.

I had a $1000 cash advance in August and will let it age the 90 days. Also made 2 months minimum payments on that CC. Told my attorney about it and he didn't think it would be a problem.

[HakunaMatata]

Like you, I was concerned about recent CC charges I had made for basics (gas, food, phone, etc). I met with three consult attorneys and two of them suggested waiting 90 days (not six months). The attorney who didn't share this view reviewed my CC statements, claimed my purchases were not classified as "luxury", and said I could file in the immediate future if I desired such. This attorney worked on "both sides of the fence" and was very confident a CC company would not dispute these charges. I, ultimately, selected him to represent me. However, I remained uncomfortable with my recent charges and the austere change in payment behavior. The card causing me concern had formerly been used in lieu of cash (for years) to pay for nearly everything and had been paid in full monthly.

I neglected to follow my attorney's advice and continued to submit payments to this creditor. Fearful of a preferential issue, I paid on other cards as well. My purchases of concern were 60 days aged prior to filing; and, I was current with some creditors and a mere two weeks past due with others.

My lesson: Propelled by fear, lack of knowledge, resistance to professional advice, and a desire to "do the right thing", I threw away money which could have been exempt. Thankfully, this lesson won't have to be relived by me and can be passed along to others.

[DeadManCrawling]

Hakuna makes a very good point.

Paying creditors, in almost every case, is a waste of good money.

I would only pay a creditor on advice from your attorney, and only then after a very detailed and concise explanation why that creditor should be paid.

I could see the need to pay a payment or two on a single card that was subject to large balance transfers or an unwitting luxury purchase. Even then, I think it is better to et the debts age than to pay on them for an extended period. Always needs context, these decisions, and attorney's advice.

Nearly every district has enough exemptions to cover some cash. Why not keep it for yourself?

[jribe]

Ok, so here's my advice: don't worry about those small purchases made in October. Like you, i was intially very concerned with when last purchases were made, the time between that and possible filings. As it turns out, the trustee didn't even ask! Not once. Did not ask for bank statements or anything. If i would have known that, i would have filed in August and been discharged by now. But i had to take my dog to the emergency vet, and it was about $200 on a CC- that was in August.

The only thing is creditor objections. But as many have pointed out before- objections are costly for the creditor, and the burden of proof is on them to prove you did something wrong. Small purchases will not be considered.

Good luck!

Hello to everyone

first Happy thanksgiving to you and your family. And a big thank you to this site and all the members for the advice.

I have finally decided that I am going to file CH7. I had a consultation last month and decided it was the right choice for me and my fiance. I am going to be filing myself not her so were ok there. I planned on filing originally in february- march, but I have post dated it until may-june. The reason why is in october i made a couple purchases with my card ( i.e gas,food,utilities etc.) and have always paid my cards on time. I am going to pay back the amount that i spent ( i want to make sure i'm not looked at as someone trying to pull anything shady). I know its a while away but I had to let everyone know on here who have helped. I was also going to file my taxes early in february and use my refund to pay off some debt. I was curious if there would be anything you guys would recommend? again thanks to everyone, i know its still far away but this process has been a little nerve racking. Happy thanksgiving to all

[kw1025]

Make sure you document every penny of the tax return you spend. I would not pay any creditors from this point on, it may look like preferential payments. If anything, pay your attorney with your tax return. If you are planning on filing, the attorney is your best investment at this point