Is timing of the initial consult important?

[jimisbroke]

Wondering if we should delay our consult or if it doesn't matter. Have been using credit cards up until a couple of weeks ago (gas and food). We are current on all bills and have now chopped all credit cards up. We have an appointment for our consult on January 2 and are planning on retaining at that point. My question is will it look bad that we charged things to our credit card within 3 weeks of retaining a lawyer? We know that we weren't planning on filing until very recently but will the credit card company believe it? Or is the date of filing the only important date?

[Drazil65]

Welcome, the good thing here is that you realize that you need to stop using the cards and you did something about it. Even though you retain the attorney you choose when you want to/need to file. It is key to put as much time as possible between the file date and the date of last usage on the cards. At the very least 90 days but if you can hold out until closer or at 6 months that is prime. We figured out what the 6 month date would be and that became our goal for filing. You may also want to go to a couple more consults as choosing an attorney will be just as important in the long run. If you can let the clock run a little. Good luck.

[AngelinaCat]

Hi Jimi, welcome to the Forum. No, the timing of your last use of credit cards and your initial consultation with an attorney is not important. Nor is it recorded anywhere. The timing issue comes in when you realize that you are going to have to file at some point, and you have to do:

(a) what Drazil65 said, and put time--at least six months between your last use of the cards and your filing date; and/or
(b) you have a large income of something, as we did--a yearly stipend from a Retirement instrument. That comes in January of each year. Even though it was retirement income, we had to wait at least six months for it to drop off our income 'radar', as it would have skewed our figures and not presented a true picture of what our income actually was.

I hope that helps. Good luck to you!

[ValleYum]

IMO and from what I learned here - the gas and grocery charges should not hurt the OP if he absolutely can not wait 6 months. I had charged within 4-6 weeks of filing... those little recurring things we never really think about. We also charged utility bills in this 90-day time frame and nothing was ever said. (Banks: USAA, Chase, Cap One)

Your attorney will be the best one to tell you what you need to do based on your personal circumstances.

I wish you luck!!

[btbeme]

The Trustee will ask you the question "When did you first realize that you were bankrupt?" If there is a PAID consultation or a retainer paid, say, on Oct 25 and you answer the Trustee "December 1st", that would present a problem. However, if it wasn't a paid consultation (just a fact-finding mission IN CASE you had to file BK) there is no record of the visit admissible.

In essence, the IDEAL timeline should reflect a consultation (no contract or money changing hands) to tell you to stop using your cards. You then stop using them for 90 days before hiring a BK attorney to file BK for you. In the meantime, use your non-exempt cash to purchase exempt items, such as the food, fuel, and provisions that your applicable state laws will allow you to have on hand the day you file.

Now, that aside, the very best thing you can do if you see the storm clouds gathering is to consult a BK attorney early - not later. Bankruptcy filing means that you sometimes have to figure a way to fit a square peg through a round hole, which can take some time and planning. Nothing illegal with planning to make it as smooth as possible should it be necessary to file. The best attorneys I consulted all said that their average time between initial consultation and filing for their client was on the order of 6-9 months. And, they preferred it to be that way. I'll leave it to your imagination to figure out why that is true, but these forums are filled with experiences that can help you plan for the worst while you hope for the best...