Cash Advance 10 months ago

[Bosco]

Hello,I have a question,my wife is going to have to go bk, so I find out...she took 2 cash advances 10 months ago totaling 19k to get by on...she is a realtor and has not closed a deal in 8 months...she has been making timely payments all along but it is getting to the point of no return...

all other debt maybe 20k more has been food clothes etc...nothing funny,just trying to get along...

are these cash advances going to keep her from chapter 7....

we don't know what to do...

peace
b

[Oblib2345]

I wouldn't think so. The idea is to prevent people from fraudulent advances (taking out money that they knew they were not going to pay back knowing they were filing bk). If your wife has been making payments for 10 months, she is showing that she tried to pay the debt back and now it is no longer possible. Generally, the rule of thumb that I heard was any advances in the previous 6 months were reviewed much more strigently so she is past that point to. A lawyer would definatly be able to answer your question better (and more professionally), but in my experience, she shouldn't have a problem.

[Bosco]

Thanks much for the reply...this stuff is nerve racking...

peace
b

[frogger]

she is a realtor and has not closed a deal in 8 months

That pretty much sums it up. Tell that to your attorney and the trustee if necessary and it shouldn't be a problem.

[Bosco]

That pretty much sums it up. Tell that to your attorney and the trustee if necessary and it shouldn't be a problem.

can only hope....you read this stuff about cash advances and it gets scary...

peace
b

[backtoschool]

The fact that the cash advances were 10 months ago and that she has paid regularly on them should keep her creditors from filing an AP. If she can wait a full year from the last cash advance to file, that would be ideal.

[Bosco]

what I don't get is they can paper trail food and everyday living expenses out of these proceeds...what is the difference if she was putting them on a cc...the reason she used advances was they had 0% interest for a year,and figured that this government would do something about the housing mess...

when things picked back up she could pay the bill no interest and move on...well we all know how this country is sitting now,you can't find anyone with equity in there houses,to even sell...

what sense would it make to use credit cards with high rates before 0% advances..thats crazy !!

[eventsdj]

I had cash advances.. 10 months shouldn't be an issue. a lot of people are doing what they can to get by right now and I don't think it is suspicious of anything at all.

[Bosco]

thanks for the replies...we are going to hold on till the very end...we will have to sell our home short sale and then move to our smaller home/cabin which is also underwater...

what a mess...I have to keep my credit clean due to a start up business I am doing,it will take a couple of years before I see anything from this ...the short sale if I keep the payments on time will only hit me 50-75 points on my credit...I have negotiated with the second mortgage holder...

the good news is my wife is not on the mortgage of our smaller home and I am not on any of her cards...boy,talk about trying to look at the glass half full...

this forum helps for some reason...

peace
b