Can I do this?

[sillywalks]

I currently have a renter in my basement. Can I have the renter pay my mom, instead of me, and not count it as income?

Can my mom pay on a bill that is mine, and it not be considered preferential?

My cat had a medical emergency this week -- the cost so far is $2400, and he is not home yet. In order to pay for it, I had to apply for a Care Credit card (medical credit card) and use one of my other CC's that still had some credit available. How long will this use delay my filing for bankruptcy? Is it 90 days, or 6 months? Does it make a difference to the court that it was a medical emergency?

Thanks for any input!

[justbroke]

Is that basement even a legal apartment?

As to charging money that you don't have and know that you're filing bankruptcy... I won't be the one to tell you what others are sure to chime in and say. I will say that you will either need to put distance between this new card and filing... or be prepared to have that amount $2,400(+) declared as non-dischargeable, meaning that you will HAVE to pay it.

Your mom could pay utility bills and the like, but not a credit card. That would be a preference. While the Trustee doesn't come after you personally for preferences, it would be wasted money! The money would be recovered by the Trustee and divided amongst the creditors.

[sillywalks]

Just broke --

Thanks for the input. If by legal you mean legal egress, then yes. If by legal you mean 'technically' allowed in my neighborhood, no, but it has not been a problem so far.

I do think I will file bankruptcy, unless by some miracle the bank writes off the deficiency. Without the deficiency I would not file. I have not consulted a lawyer or anything. Plus, I did not have any really good choices regarding the medical expenses -- I certainly do not have $2500 sitting around waiting to find a use. Without the surgery, the cat would have died (blocked urethra) -- his blood work before surgery was really, really bad. I have not been using my other CC's and I've been paying just above the minimum.

My idea was for mom to get the rent from downstairs and using part of it to pay on the medical cc bill (thus reducing it before/if I file bankruptcy without it being considered preferential payment).

I do not want to do anything illegal, but not counting the rent as my income and mom using it to help with the new cc bill would be a great option. That way, even if I did reaffirm the debt, it would be much smaller (maybe even gone).

So, do I need to wait 3 months or 6 months for it to be okay?

[BKDebby]

Sillywalks, I don't have any advice for you as I'm new to this BK process, but I hope your kitty gets better . I bet they had to do that surgery that makes him into a female? I also have a CareCredit card with a zero balance that I've used in the past for my 2 cats. I was wanting to re-affirm my CareCredit for vet emergencies, but my lawyer's secretary told me that GE Money Bank, who owns CareCredit, never re-affirms that card. So, I had my boyfriend get a CareCredit card in his name that I can use in the future. I know it's too late now, but you probably should have had your mom get the CareCredit card.

[sillywalks]

Thanks, BKDebby. Yes, they were going to do that surgery, but his urethra was too badly damaged, so the Vet ended up changing the procedure. Now he will have to learn to pee like a girl dog (from between his legs). I told my son it's like if he had to pee through his belly button. Poor kitty. He still has not come home, because he has not peed on his own yet. Hopefully tomorrow.

Thanks for the good thoughts. My guy is only just over a year old, and I could not see putting him to sleep.

[justbroke]

silly, just don't be silly. If you are collecting rents, you should b e reporting them. You should not be diverting it to pay your cc bills. If mom is a co-owner, that's a different story, but still is preferential.

By "legal" apartment, it means that it has a certificate of occupancy. It also means -- in almost all jurisdictions -- that the apartment has separate meters for utilities. Most basement "apartments" are not legal apartments. In any event, you would probably just classify them as a boarder and that you collect rent.

If you just pay down the bill over time, from the rents, and don't file for 6 months or so, you probably won't have any issues. If you're really thinking of filing, you should probably get some consultations with attorneys in your area to give you the best legal advice.

[sillywalks]

I'm working on the attorney thing already. Not a 'legal' apartment -- I'm calling her a 'roommate' or 'boarder'.

Thanks!

[keepmine]

[QUOTE=sillywalks;448479]I currently have a renter in my basement. Can I have the renter pay my mom, instead of me, and not count it as income?

Can my mom pay on a bill that is mine, and it not be considered preferential?

I'd suggest you not involve family or friends in your bk.
If your renter has been paying you then, you need to keep accepting the rent checks and disclose the income on the schedules.

[tcreegan]

good faith effort on debt

Hi sillywalks,

Sorry to hear about your kitty....

Just wanted to rephrase your original question in hopes of soliciting an answer: If you make payments on the new debt, how long is required for a "good faith" effort which would keep them dischargeable?

Also wanted to share the wisdom of the forum: shop around for attorneys, use the free consultation to see if they are a 'good fit' for you.

Good luck to you and your kitty,

Tom in Colo

[sillywalks]

I just wanted to let anyone interested know that my cat (Kodi) is doing better. He gets his stitches out tomorrow, which means no more cone head (thank goodness). Unfortunately, he now pees from the equivalent of his belly button (think girl dog) -- so somehow he has to figure out how to pee without it running down his legs. Poor kitten! Still, he was very close to death before, so I am grateful he is getting back to his old self. Of course, it's a bit over $3000 later...and another $500 into my car this week. Ah, well, it's only money, right?

I am grateful that I have a great job, still have a roof over my head, and my fuzzy family is recovering. Life is not all bad!