Please Help! Need advice.................

[trashy]

Borrowed $1000 from a finance company, stupid move considering I can't even pay CC's now. Two days later met with a financial counselor who said only way out was Ch7. Met with attny who advised same. Explained to attny no charges on CC's had been made within past 90 days, except at finance company two days earlier. Attny said if I could honestly look trustee in eye and say at that time I had every intent to repay there would be no problem, as I was just trying to survive by paying mortgage payment. Will this cause me any backlash at 341 meeting? What is likely to happen? Attny (who is very well established and respected) says he doesn't even see a yellow flag and the case is a 95% sure thing. Thanks for any help. My nerves are shot and I haven't even filed yet.

[BrokeinMD]

Keep it honest and continue to disclose all to your attorney, that's all. They'll either let it fly, or ask you to payback 90 days worth of charges (if my memory serves me correctly). I continued to use 3 - 4 gas cards $3K limit with all 4, that I paid the minimum on, right up to BK. The creditor turned them off, as they were rolled up through Citi and Chase, who I also had private cards with. In my case, they let it fly. No mention at 341. Best of luck to you!

[trashy]

To me the worst part is that I haven't made even one payment to the finance company. It makes me feel... (trashy). But now I have stopped paying all creditors on advice of attny in prep to file within a few weeks. Thank you BrokeinMD for the advice and support.

[keepmine]

Worse case, the finance company files an adverserial proceeding objecting to the discharge of that particular debt. That won't affect the rest of your bk or your discharge. Nobody can speak for your creditor but, if they do object you'll still discharge far more debt than a $1000.

[trashy]

So really I just go back to square one with that one creditor and make payments on the $1000?

[BrokeinMD]

$1,000 is a lot to us, but I think it's bigger charges than that they red flag. Now, if you spent it on a new TV, or a vacation, that would be a red flag. But, to pay your mortgage? Yea, it's a Peter and Paul thing, which I'm guilty of doing too, but you did what you felt right for an honorable thing - keeping a roof over your head. Everyone handles this differently.

[trashy]

Thanks you for the advice

[BrokeinMD]

Trashy, your attorney reads like he's giving you good advice. Cross that bridge if you get there, but expect not to even approach it. And, if you do, your attorney will advise how to handle it! Breathe! You'll be okay!

[wipetheslate]

$1,000 is a lot to us, but I think it's bigger charges than that they red flag. Now, if you spent it on a new TV, or a vacation, that would be a red flag. But, to pay your mortgage? Yea, it's a Peter and Paul thing, which I'm guilty of doing too, but you did what you felt right for an honorable thing - keeping a roof over your head. Everyone handles this differently.

Agree. $1000 isn't worth the time it would take to pursue.

[discouraged]

I had overdraft protection at my bank and after paying off what I owed and not using it for months, the bank 'threw in' 400 to my checking account when I paid my 2nd mortgage. BUT, they did that before my automatic check (from unemployment) went into my account and that payment went in before the mortgage payment. So, after paying them 100, I saw a lawyer and even when he told me not to pay it, I felt guilty, even though they were in the wrong. So I know how you feel. After thinking about it, I no longer feel guilty as they were trying to make money from the interest by throwing the money in my checking account. Yes, I should have paid it right back, but it was right before I was advised to file bk by a financial advisor and I needed the money at the time. Doesn't matter, they still should not have done it.