Can I pay this debt?

[TomTea31]

I have a gym membership and I did not know that the charge was not going through for like 4 months. I woe about $100. I'd like to pay it since I'd like to go to the gym. I've been going and they never said anything to me so I had no idea.

I will ask the attorney but want to get your opinion to

I'm filing on Tuesday

[justbroke]

The bankruptcy code does not prohibit a debtor from repaying ANY debt that was discharged. However, I might not pay the membership dues before filing. The Trustee has avoidance powers under 11 USC 548, where the Trustee can claw back the dues and share them with the other creditors. I don't think a Trustee would go through the trouble for $100. I suppose that you signed a contract?

I think it's best to follow your attorney's advice. It may be to list them as a creditor and to discharge the debt.

Tough choice since this is not a family dentist or other medical provider of services. But certainly don't get into the whole issue of making preferential payments to one unsecured creditor over another. Would be nice to read what your attorney things.

[SMinGA2]

I would think its ok to pay it so you can keep the membership... Its a small amount, so not likely to cause any issues. And in my opinion its more of a pay for service so you can continue to receive the benefits sort of expense.

[keepsmiling]

Isn't the amount $600 that arouses interest?

[justbroke]

Isn't the amount $600 that arouses interest?

t is in aggregate, but yes, the threshold is $600 before the Trustee could "avoid" the transfer. In this case, do you really want that membership? That's my real question.

[TomTea31]

I do want the membership. I use it all the time. I can't beleive they didn't tell me my card wa snot working. I forgot to give them my new card #'s.

What about my regular bills? Can I continue paying as usual? Nothings in agrate. I'm up to date on bills

[justbroke]

I do want the membership. I use it all the time. I can't beleive they didn't tell me my card wa snot working. I forgot to give them my new card #'s.

What about my regular bills? Can I continue paying as usual? Nothings in agrate. I'm up to date on bills

Regular bills, such as utility bills, cellular, cable, rent and the like, are just fine. I don't think that this particular (gym) bill will be an issue since it is under $600 at this point.

[TomTea31]

ok and what about a $300 loan from a friend? I haven't paid him yet as I wasn't sure if I could. It's under $600 so I should be safe?

[OhioFiler]

ok and what about a $300 loan from a friend? I haven't paid him yet as I wasn't sure if I could. It's under $600 so I should be safe?

He is a creditor of yours so technically you should list him on your petition.

[AngelinaCatHub]

As one above answered this question regarding preferential payments, now you ask for another one that equals $400. The Trustee could see a pattern and he has a lot of discretion in how he treats you. The best way to ease through a 7 other than pure honesty, is not to complicate the situation. One doubt could cause another and then you may be looked at REAL close. I would simply tell your friend what is up and could he wait for payment after your discharge. Then pay him. 'Hub

[Drazil65]

You are supposed to list everything, you certainly do not want to bring attention to yourself with not listing a "few" small loans that could easily add up. The other creditors may not balk at $100 instead of paying them BUT find a couple more small loans that you did not mention and it could draw unwanted attention. IDK, did you not list them because you plan to pay them off in the very near future? The one to a friend may be dicey in that you are repaying a friend BEFORE anyone else, something to think about anyway. Good Luck!

[AngelinaCat]

The one to a friend may be dicey in that you are repaying a friend BEFORE anyone else, something to think about anyway. Good Luck!

This is a perfect example of a Preferential, Insider Payment. Do not do this unless you like causing yourself a lot of grief. List EVERYONE you owe, and the amount, no matter how small, on your petition. To do otherwise is not being honest. Remember, you are put under oath at your 341, and asked if everything on your petition is true and correct.

[ValleYum]

I kinda see the Gym Membership as a contract thing just like a Cell Bill - a monthly payment I would make. ::shrug:: The fact that her normal monthly payment was messed up due to not remembering who all she gave her new card info to is IMVeryVeryVeryHO, explainable to anyone who has been through the fun of a card number change.

Regarding the loan from a friend - I would definitely list it and tell your friend you can pay him in about 3 months if that is your plan...

I owed my dentist about 1k when we decided to file - it was incredibly embarrassing to explain that I could not make payments for the next 3-6 months and why but assured him my intention was to pay him - they put me on a cash only basis for future work at that point (perfectly understandable). I was a woman of my word and I took a certified check to his office day after our discharge and paid him in full. Happily, he still is my dentist.

[TomTea31]

You are supposed to list everything, you certainly do not want to bring attention to yourself with not listing a "few" small loans that could easily add up. The other creditors may not balk at $100 instead of paying them BUT find a couple more small loans that you did not mention and it could draw unwanted attention. IDK, did you not list them because you plan to pay them off in the very near future? The one to a friend may be dicey in that you are repaying a friend BEFORE anyone else, something to think about anyway. Good Luck!

did I say I didn't list them?

[TomTea31]

I kinda see the Gym Membership as a contract thing just like a Cell Bill - a monthly payment I would make. ::shrug:: The fact that her normal monthly payment was messed up due to not remembering who all she gave her new card info to is IMVeryVeryVeryHO, explainable to anyone who has been through the fun of a card number change.

Regarding the loan from a friend - I would definitely list it and tell your friend you can pay him in about 3 months if that is your plan...

I owed my dentist about 1k when we decided to file - it was incredibly embarrassing to explain that I could not make payments for the next 3-6 months and why but assured him my intention was to pay him - they put me on a cash only basis for future work at that point (perfectly understandable). I was a woman of my word and I took a certified check to his office day after our discharge and paid him in full. Happily, he still is my dentist.

Ok something to think about and I'll discuss with my attorney.