Paying one cc and not paying another AND income ?

[coolmom04]

Now that we know we want to file BK, whether it be chpt7 or even chpt13 (which I am still trying to learn about and will have more ?s I know), I want to stop paying the CCs b/c I feel like we're throwing the money away. That money needs to go to other stuff we need... like groceries, clothing, both my younger children need car seats. Stuff like that.

DH is freaking out about stopping them. He is afraid we won't get to file either for some reason. Why wouldn't we be able to file 13 if we aren't able to file 7??

Also, I will keep paying on the cc I charged last month and the one I got the cash advance from.. is it okay to pay MORE towards those than the minimum payment? Will that look bad?

Now with regard to income...
Do they take the YTD income total and get a monthly average or will they just look at the current gross income for the pay period? I ask b/c DH received a bonus in June 2009, which we used for much needed stuff and to pay off a credit card, but is obviously reflected in the YTD gross pay (it increases his yearly gross by 9K). There is no guarantee he'll get another bonus next year.

[backtoschool]

Now that we know we want to file BK, whether it be chpt7 or even chpt13 (which I am still trying to learn about and will have more ?s I know), I want to stop paying the CCs b/c I feel like we're throwing the money away. That money needs to go to other stuff we need... like groceries, clothing, both my younger children need car seats. Stuff like that.

DH is freaking out about stopping them. He is afraid we won't get to file either for some reason. Why wouldn't we be able to file 13 if we aren't able to file 7??

Also, I will keep paying on the cc I charged last month and the one I got the cash advance from.. is it okay to pay MORE towards those than the minimum payment? Will that look bad?

Now with regard to income...
Do they take the YTD income total and get a monthly average or will they just look at the current gross income for the pay period? I ask b/c DH received a bonus in June 2009, which we used for much needed stuff and to pay off a credit card, but is obviously reflected in the YTD gross pay (it increases his yearly gross by 9K). There is no guarantee he'll get another bonus next year.

If you pay more than $600 to any creditor within 90 days of filing, the trustee will consider that a preferential payment and will go after the creditor for the money. If you are only paying a bit more then that is not a problem, but paying the minimum would be best.

If you have a cash advance within a couple of months of filing, then the creditor may object to discharge of that debt and file an AP. How long ago was your cash advance, and for how much?

[AngelinaCatHub]

Technically it is preferential to pay anyone card above the other. But as 'backtoschool' says, it would probably not be considered at all. Pace your time accordingly regarding the last payment to your preferentail two cards. Paying the cash advance card would be well to do for about 3 months depending on the advance. Do not use any cards from this point on.

Six months look back on all income is the traditional time. It could vary if the Trustee has reason to do so.

Attempt C7 as, it is easier, cheaper, and gives you an immediate new start on average of 90 days. 60 after your 341. 'Hub

[StartingOver08]

As to your income, the bonus will be in your 6 month look back period if you file this month, Dec 2009. If you file in 2010, the bonus will not show in the look back period. BTW, the income is not averaged for the year. The Trustee looks at your gross income for the six full months prior to the filing date. If you file in March 2010, the six full months are Sept 2009 thru Feb 2010.

Please don't pay more than the minimum toward the cc you charged on and the one that you took the cash advance last month. As BTS points out paying more than the minimum won't help. But do pay toward those two cards for at least two payments. Don't pay any other unsecured debt and of course don't charge anything.

[coolmom04]

Thank you all so much. I just spoke with the attorney we are meeting with and she said to stop paying the cards as well. I asked about the 90 day thing and the cards I used and she said it just depended. I had intended to use the extra $200/month I wasn't going to pay on one card to go ahead and pay off the one I charged an item on and then continue paying the minimums on the card I got the $700 cash advance from (the total over a three month period).