When should I fill?

[johnbolt]

I have about 23,000 in cc debt with about another 4k unused in cc's. This is spread between three creditors and 4 cards. I have about 1900 cash on hand, and get paid about 1700 after taxes on the first of each month. I am new to the whole 60/90 rule and really have allot of questions about it, but that is another story. Over the past 90 days I have added about 4k in new debt onto the cards no single charge of over $300. But come mid Dec I will have about 500 cash on hand and zero dollars in mortgage escrow account(just about the only thing that I don’t think I can exempt in Texas). But on Jan 15 I will be getting an 8k distribution from a student loan. Will this money be exempt from my bk estate? Since I will be getting it after I fill? Will I have to pay back the 4k from the past 90 days? Should I max out the cards, and move my cash on hand into an IRA?

[free2breathe]

First, don't max out your cards. If you know you are going to file, you know you are insolvent, and any charges you charge within that 90 days could very well be determined to be non-dischargeable debt. Also, if you haven't made regular contributions to an IRA, putting money in one now would also be considered a red flag. You should really call a few attorneys, make a few free consultation appointments, and get some good solid legal advice.

[BKlooker]

The student loan distribution shouldn't be effected a BK already in progress (my attorney confirmed this for me, i am in the same boat), BUT if you used any of the previous disbursement (if you had one) on anything other than living expenses (i.e. to pay on a credit card), the trustee may take it back from the respective creditors and disperse it evenly (which doesn't really effect you or your BK much, just the creditors).

That being said, talk to a lawyer...I wouldn't try to go pro-se on this one, you have too many sticky issues. Have you continued to pay the cards on time up through present? If you have, coupled with what you are saying is true as far as no charges over $500, I would think you are alright, provided the majority of that is necessary living expenses and such (car maintenance, doctor's bills, etc.).

Now, if you are out buying a new flat screen and some rims...different story. The IRA idea would also be a VERY bad move right now. The trustee would have a field day with you for that (moving assets to avoid them being seized in BK will land you in big trouble, my friend). The trustee's job is to find assets and traces thereof, so don't test your luck.

Timing is a critical factor in any BK. You want to file when you have the lowest available cash and assets on hand a the time to risk decreasing the chance that you will have the trustee take it. If you wait til after the student loan refund hits the bank, the trustee would likely take any of it that wasn't used directly to pay the school for your classes and give it back to the feds on the loan (which is really a good thing, as it would make your balance lower in the end), or distribute it among your creditors evenly.

And as someone else said...STOP USING YOUR CREDIT CARDS NOW! If you keep using them up through filing and max them out, it will look like you are frauding the system and they can dismiss your whole case and/or get the US trustee involved and it goes downhill from there. You need to get used to living on cash only, so if that means letting the cards and such go for a month or two so you can pay a lawyer and get filed, I would do it. If you need to make purchases for small everyday things to live (groceries, gas) until filing, it likely won't hurt, but don't push it!

I am not a lawyer....but i can tell you if I were you, I would have been to one like yesterday. They generally offer free consultations the first time or two, so look through this forum and online and fine a good one in your area. There are plenty of other members on this forum from Texas, so ask around for a good one.