Ch7 unsecured debt

[inarut]

[scorpion35]

u are going to need a very good attorney to keep the UST from killing your BK case if u decide to file.
hope it works out for u

[AngelinaCatHub]

Whoa before you do anything: Do you have a bk lawyer yet? How long ago did you last use your CC's? I didn't catch but you have not filed yet right? OK, from here, I shall attempt sort out.

BTW, welcome we made far worse mistakes.

This is a great site & community with a wealth of knowledge & support. I wish I’d found it sooner. May have saved me from making poor choices. I agree and I wish we had also.

In California, lost house, up to ears in unsecured debt, & resorting to filing Chapter 7 BK in July. Thanks to 401k account, I’m currently solvent but have about $90k in unsecured debt. DON'T use any 401K if at all feasible.

In month 14 prior to July filing, I took out $10k in cash advances from credit cards to settle my HELOC & short-sell house. In month 13, my mother gifted $20k to add to HELOC settlement. I deposited the $20k & didn’t touch the account. Long story short, HELOC bank wanted more than I was able to give & house foreclosed in month 13. I returned the exact amount to my mother in the same month while I still had the house & was insolvent. OK, if you only "stored" your Mother's gift, then returned the same, you never used this money. It is not preferential payment if you did not circulate the funds. I foolishly kept the cash advance money on-hand to use as emergency funds but piddled away a good amount here & there (I’m ashamed to say). What did you "piddle" it on? Essential living items I hope such as electric bills, food, insurance, the like. I don’t have any big receipts but still have about $7k tucked away. Tucking away funds is not cool. It is an asset. Either pay it back to the exact card you got it from (check with lawyer as to preferential), or use it for only necessary and exempt stuff.

I continued to pay minimum on all credit cards even while in foreclosure. Was 6 months delinquent on primary & HELOC. I’ve continued to use the credit cards for food & utilities etc. & have been paying minimum on all unsecured debt. Can’t seem to get out of rut & am worried about lay-offs & cutbacks in hours at work. Aren't we all? Hey how is that Hope and Change working out for you?

Had free initial consultations with a couple BK lawyers while going through foreclosure. Tried to short-sell house & settle HELOC to avoid foreclosure & BK, but failed. Been trying hard to avoid the “B”-word for a long while now, but seems to be the only option to starting over. Already lost cash deposit & house, worried about job situation; trying to start anew. What cash deposit? What house? The one you lost or a rental?

1. Do the credit card companies have grounds to dismiss my BK request because I took out the cash advances while I was insolvent? Well, yes, but if you were truly insolvent your credit score would show that I believe. Time is on your side and hold off as long as possible. At least 90 days is the benchmark.
2. Will my BK be dismissed since I’m not able to account for the piddled-away $3k in cash advances? Try to think where it went. Put down on paper your best guess. Remember bk is gracious unless you lie.
3. Is the $20k from my mother an insider/preferential payment that will dismiss my BK? It could look that way, yes. But since you put it in, did not use it, and paid the exact amount back, you simply held it for her in this case. Be prepared to explain and defend that.
4. Do CC companies have grounds to dismiss BK since I used cards after initial consultations with BK lawyer during foreclosure? No. You were not filed. You may talk to anyone you wish for advice. However, stop using those card right now!! (Was not planning on declaring BK at that time, in fact I've been trying hard to avoid "B"-word ever since.) If so, would it be beneficial to reaffirm CC debt Gawd NO!! (about $19k) in BK request to avoid dismissal & try to figure out a re-payment plan? Still have the $7k, but wouldn’t repayment to CC be preferential? See above and ask your new lawyer. Pay your whole bk with that money as it is also exempt as a necessary expense. Use it ONLY for needs and not wants. Keep accurate records from here on out.

Thanks in advance for any advice & insight. I know I’ve made my share of mistakes, just want to avoid more mistakes & approach the “B”-word the right way.

We have all been there, done that. 'Mistake R US' has been our motto unfortunately. But we got through it.

Keep reading here. Get the C7 book from Nolo Press online for about 17 bucks. It is very good. 'Hub

[AngelinaCatHub]

I am a bit confused on the above postings.

In month 14 prior to July filing,

This gives me some question as do you have a lawyer already? HAVE YOU FILED? If you have filed what has your lawyer advised you on on all your questions give to us? You do understand that we cannot and DO NOT, give legal advice, only our opinions and experiences.

Please clear up a lot of stuff here. We have seen riddles here before and your best bet for good advice is input good and honest information. We will not work around the system for anyone. I got by as it was apperant that we were so innocent and ignorant that the Trustee allowed us to dig our way out of a bad situation. Cost us a lot but we should have been dismissed for all the mistake we made. Total honesty is the only way here. 'Hub

[inarut]

Do you have a bk lawyer yet? What cash deposit? What house? The one you lost or a rental? The cash deposit & house I lost in foreclosure.

How long ago did you last use your CC's?What did you "piddle" it on? Essential living items I hope