Am I in trouble?

[BAR]

Run down of where we are. Filed ch7 1-19-11
Had 341 meeting 2-16-11
No problems at 341.
on Pacer it says awaitng for discharge (this is on 4-18-11)

Now the story,
We have a credit union account with a CC an RV and a car loan. The 1/4th of car loan gets taken out of the wifes check every week and deposited towards the car loan. All loans are cross collateralized.

We also deposit $5.00 extra each week into the savings account from her check. (we have to do this to keep the account open with the CU)

Now here is what Im concerned about. Since we only have $5.00 each week put into the savings and we cant withdraw any of it (CU wont let us as long as we are behind) we are behind on the CC payment, I have been just transfering the $5.00 each week to the principle of the CC. (I figured that they would end up taking everything out of the savings once we were discharged so thats why the transfer to the CC each week, plus we plan to keep in good graces with the CU and are going to pay on everything after discharge, i.e. pay through with RV and car and pay CC off as soon as possible)

Is this prererntial treatment with paying the car loan and the CC this way? And can I get in trouble for this? Should I stop transfering the $5.00 each wee to the CC?

[tobee43]

Run down of where we are. Filed ch7 1-19-11
Had 341 meeting 2-16-11
No problems at 341.
on Pacer it says awaitng for discharge (this is on 4-18-11)

Now the story,
We have a credit union account with a CC an RV and a car loan. The 1/4th of car loan gets taken out of the wifes check every week and deposited towards the car loan. All loans are cross collateralized.

We also deposit $5.00 extra each week into the savings account from her check. (we have to do this to keep the account open with the CU)

Now here is what Im concerned about. Since we only have $5.00 each week put into the savings and we cant withdraw any of it (CU wont let us as long as we are behind) we are behind on the CC payment, I have been just transfering the $5.00 each week to the principle of the CC. (I figured that they would end up taking everything out of the savings once we were discharged so thats why the transfer to the CC each week, plus we plan to keep in good graces with the CU and are going to pay on everything after discharge, i.e. pay through with RV and car and pay CC off as soon as possible)

Is this prererntial treatment with paying the car loan and the CC this way? And can I get in trouble for this? Should I stop transfering the $5.00 each wee to the CC?

you are saying you're depositing $5 a week, however, do not mention the total....if it's anything substantial or over the exempt amount and you already had your 341, the trustee will decide whether or not it's worth taking the money and distributing among your creditors.

many people reaffirm their cars during bk...now the RV...i don't know...the RV, if it has a ton of equity, they make you sell it.. what does your atty say about this???

if it's a few hundred dollars you may hopefully just get a pass. if it's a few thousand, you aren't in "trouble", it may be the trustee will want the money to pay down your debt, and if you filed for a no asset chapter 7, you could be put into an asset chapter 7...or even a chapter 13, if the trustee feels you can continue your payments.... but it's nothing that can't be worked out in one way or another.

[AngelinaCatHub]

Stop transferring the five bucks. The CU is selling you shares usually five bucks. You can always transfer later. At this time you are technically preferential to that debt. I doubt the Trustee will care about just a little money. Since it is a rule of the CU to buy a share you are not saving it so to speak. You are only attempting to Pay Through on the car and the rules state you have to buy a share per payment. The Trustee won't mess with the CU but could note your payment to a preferential entity. After your discharge you have a right to pay anyone you wish. A bk does not eliminate debt at all. You always still owe the money. It forgives legally your responsibility to pay the debt. It offers a new start but the old debt is still there but uncollectable. 'Hub

[tobee43]

Stop transferring the five bucks. The CU is selling you shares usually five bucks. You can always transfer later. At this time you are technically preferential to that debt. I doubt the Trustee will care about just a little money. Since it is a rule of the CU to buy a share you are not saving it so to speak. You are only attempting to Pay Through on the car and the rules state you have to buy a share per payment. The Trustee won't mess with the CU but could note your payment to a preferential entity. After your discharge you have a right to pay anyone you wish. A bk does not eliminate debt at all. You always still owe the money. It forgives legally your responsibility to pay the debt. It offers a new start but the old debt is still there but uncollectable. 'Hub

hub, i found it interesting that this CU took $5 with each and every payment. i do suppose they all work differently. but i thought as long as you have a minimum in your "share" account it's fine. i suppose this was the agreement the OP made with the CU. we took out all of our car loans via a CU and never had to add money to the share account with our payments. but, i guess that each is different.

[AngelinaCatHub]

hub, i found it interesting that this CU took $5 with each and every payment. i do suppose they all work differently. but i thought as long as you have a minimum in your "share" account it's fine. i suppose this was the agreement the OP made with the CU. we took out all of our car loans via a CU and never had to add money to the share account with our payments. but, i guess that each is different.

I never have either. My assumptions are based on what the OP stated. If the 5 bucks is going into a share account (what CU's call savings) and this is some sort of agreement I think he should leave it be. He states he cannot retrieve it but can transfer it. Don't transfer to another CC. That equals preferential. 'Hub

[BAR]

you are saying you're depositing $5 a week, however, do not mention the total....if it's anything substantial or over the exempt amount and you already had your 341, the trustee will decide whether or not it's worth taking the money and distributing among your creditors.

many people reaffirm their cars during bk...now the RV...i don't know...the RV, if it has a ton of equity, they make you sell it.. what does your atty say about this???

if it's a few hundred dollars you may hopefully just get a pass. if it's a few thousand, you aren't in "trouble", it may be the trustee will want the money to pay down your debt, and if you filed for a no asset chapter 7, you could be put into an asset chapter 7...or even a chapter 13, if the trustee feels you can continue your payments.... but it's nothing that can't be worked out in one way or another.

The RV has no equity in it, and we listed it as surrender, but want to keep it so the lawyer said to just do a pay through on it, and the CU probably wont take it back. (they want their money not the trailer)

We also said we were going to reaffirm the car, so that payment is ok I think.

The total amount added to the savings is only $5.00 per week and it adds up to about $40.00 since we filed until right now.

The car payment each week is $106.34 and is automatically deducted from her check directly to the payment for the car, this money does not hit the savings account at all.

The savings account is a mandatory thing it has to have a minimum of $5.00 added to it each week so that you stay a member of the CU with an active/open account.

How does the UST know how we spend our money during the 60 day waiting period?

Yes we are a no asset ch 7, thats what it says on pacer at the top of the status page.