do late fees accrued after filing get discharged?

[zingabot]

Hello everyone,

I'm working on filling out our Chapter 7 paperwork (no lawyer) and have a question - I need to enter the current amount we owe on the three credit cards. Guaranteed they're going to keep piling on late fees between now and the discharge date - do those fees become part of the discharge? I guess what I'm asking is, are we going to end up owing late fees to the credit cards after our discharge because they were added on after the filing date and therefore technically accrued after filing?

Also, I'm a little nervous because I believe I need to use the last date something was charged to the card as the "claim date" on Schedule F (is that correct?) and that last date for one of the cards was a couple of days ago; for the other two cards it was last month. Is that going to be a red flag for the trustee? My husband has been out of work since April, which is why we're filing, and the credit cards were used to help keep us afloat, such as taking cash advances to pay the rent a couple of times. I don't know why a trustee would waste his or her time on us, since we're a no-asset case looking to wipe about $60,000 off the books, but still....the card that was just used also just received a payment (I didn't mean for it to get paid - long story), whereas the other two are 30 days overdue and almost 30 days overdue.

Our debts include two vehicle loans, one of which we're re-affirming, a student loan, and three credit cards. No house. No assets.

[mtbc]

Roughly how much did you charge? And how much did you accidentally recently pay?

[AngelinaCat]

I'm working on filling out our Chapter 7 paperwork (no lawyer) and have a question - I need to enter the current amount we owe on the three credit cards. Guaranteed they're going to keep piling on late fees between now and the discharge date - do those fees become part of the discharge? I guess what I'm asking is, are we going to end up owing late fees to the credit cards after our discharge because they were added on after the filing date and therefore technically accrued after filing?

No, the late fees, charges, etc. that attach themselves to the charges you ALREADY owe, will be discharged.

Also, I'm a little nervous because I believe I need to use the last date something was charged to the card as the "claim date" on Schedule F (is that correct?) and that last date for one of the cards was a couple of days ago; for the other two cards it was last month. Is that going to be a red flag for the trustee? My husband has been out of work since April, which is why we're filing, and the credit cards were used to help keep us afloat, such as taking cash advances to pay the rent a couple of times. I don't know why a trustee would waste his or her time on us, since we're a no-asset case looking to wipe about $60,000 off the books, but still....the card that was just used also just received a payment (I didn't mean for it to get paid - long story), whereas the other two are 30 days overdue and almost 30 days overdue.

Put down the date the card(s) were last used. As for the one that was just used a couple of day ago, depending on what it was used for, and the amount charged, you may need to wait at leas 90 to file--preferably 6 months. That is to let time age that transaction out so that the creditor is less likely to object to the discharge of that particular debt. It DOES help that you made a payment. Depending on the amount of the charge, it may be that you will need to make a couple more minimum payments to that card to show 'good faith' while you are waiting for it to age out. Although doing so can open up another 'can of worms.'

Meanwhile, don't use any cards for anything else, and save that money for an attorney if you are planning on using one. Or are you planning on filing yourself?

Our debts include two vehicle loans, one of which we're re-affirming, a student loan, and three credit cards. No house. No assets.

Are you sure about reaffirming the vehicle? If you can make your payments on time, it may be to your advantage not to reaffirm, unless your financial institution is one that makes you do it.

Good luck to you!

[zingabot]

Roughly how much did you charge? And how much did you accidentally recently pay?

The payment was $291 and I charged about $150, basically maxing out the card.

AngelinaCat, thank you, that was really helpful.

Put down the date the card(s) were last used. As for the one that was just used a couple of day ago, depending on what it was used for, and the amount charged, you may need to wait at leas 90 to file--preferably 6 months. That is to let time age that transaction out so that the creditor is less likely to object to the discharge of that particular debt. It DOES help that you made a payment. Depending on the amount of the charge, it may be that you will need to make a couple more minimum payments to that card to show 'good faith' while you are waiting for it to age out. Although doing so can open up another 'can of worms.'

We honestly don't have the money to pay the minimums, which is one of the reasons we're filing. It's either pay the rent and utilities, or pay the credit cards. The amount charged was $150; we owe about $14,000 total on that card.

We were planning on filing ourselves, which at first I felt pretty confident about since I am a compulsive reader and researcher and our situation seems pretty straightforward - but mostly because we can't afford an attorney. But now I'm getting nervous. We have only the three cards, a student loan which most likely won't get discharged, a van which I will surrender to the bank, and the car, which we really need to keep and on which I have been making the payments. The student loan is in deferment and I've stopped paying on the cards and the van.

So do you mean by not reaffirming that I just continue to make the car payments and not list that bank on my list of creditors? That is the only debt we have with that bank, so I would think if I don't list them as a creditor they won't even know about the bankruptcy unless they pull our credit reports for some reason. But then how do I account for that car payment on the schedules? Will not reaffirming work against us somehow in the trustee's eyes?

You threw me for a loop with that I didn't know I could choose not to include certain debts. I thought I had to list everything, then declare what I want to do with each (secured) one: surrender, redeem, or re-affirm. So...??

[mtbc]

You have to list all your creditors. But you could perhaps keep on paying on a secured thing without actually reaffirming it and maybe they'll let you keep it. It depends.

For a small recent charge on a high-balance card, is there a risk the creditor could have the whole balance survive bankruptcy, or just the recent charges that postdate regular payments?

[LimpDisc]

You need to list the car loan as a creditor. You have a statement of intentions form where you can choose to retain and pay pursuant to terms.

What bank financed the car?

[HakunaMatata]

Zingabot-

Even if you're currently planning on filing pro se, you can still set up a few free consultations. In doing so, you may discover you're pro se prepared or you may decide to retain an attorney.

I wouldn't be overly concerned with a $150 recent charge. This doesn't appear to fall into any type of "luxury" domain. In my case, I had recent charges (less than the recommended 90 days aged). In the three months leading up to filing, I charged approximately $1k per month and reduced my payments to minimums. I was concerned my charges would present issues especially since they were only 60 days old and my payment behavior had altered (this card had formerly been paid in full monthly). My attorney assured me this wasn't a problem based on the nature of purchases (basics, no luxuries). My attorney's opinion held true as I was recently discharged without issues.

You mention you took cash advances. How long ago did this occur?

[StartingOver08]

To minimize the "presumption of abuse" do not charge on your cc's for a min of 90 days prior to filing. Do not take any cash advances for at least 70 days prior to filing. BAPCA has these timelines right in the BK code, that is why it is often suggested to stop charging at least 90 days prior to filing. However, each Trustee has its own idea of interpretation of the code. Some, like HakunaMatata above had no issues. In one of the Fl districts here the Trustee's are especially strict.

The creditors will call if you are not paying them. We all went through that period where we could no longer make payments, yet could not quite file yet. There are plenty of threads here on answering the phone strategies or don't answer the phone type strategies!

Your case sounds simple based on the little bit you posted, so you certainly have a good chance of going pro se. You might just want to review that section of the forum to get an idea about ride throughs and other filing tips.

[zingabot]

You mention you took cash advances. How long ago did this occur?

Last one was the very end of October to pay November's rent, so coming up on 70 days. In fact, I had hoped to file on Monday (the11th), which would make it 72 days. Don't know if I'll be able to have things ready by Monday though, so it may be another week or so. I wasn't aiming for the 11th to fulfill the 70-day requirement though; I just really want to get this filed so we can get things moving.