New member needing some advice.

[LadyInTheRed]

What I learned is that most applications are routinely denied whether they have merit or not.

Exactly what I heard from somebody whose job it was to process claims for damages filed by the public against a public agency. It was routine to initially deny all claims.

[LadyInTheRed]

If you simply quit paying today and file for bankruptcy 6 months or a year down the road, the "lookback period" will have expired, and your creditors will not be able to challenge your right to discharge their debt.

That is not true. The creditors can still challenge the discharge of the debt, but if the debt is incurred more than 90 days before filing (70 days for a cash advance), the creditor must prove that it is non dischargeable instead of being able to rely on a presumption that it is not dischargeable.

[bcohen]

That is not true. The creditors can still challenge the discharge of the debt, but if the debt is incurred more than 90 days before filing (70 days for a cash advance), the creditor must prove that it is non dischargeable instead of being able to rely on a presumption that it is not dischargeable.

Yes, I realize that technically this is true. However, what I mean is that for all practical intents and purposes, a standard consumer creditor is not going to bother fighting to make their debt non-dischargeable, unless the debt is many thousands of dollars, and they have clear and convincing proof of fraudulent intent.

Payday lenders almost never attempt this, because by definition, a person seeking such a loan does not have the money to repay the debt at the time the money is borrowed. Credit card issuers sometimes attempt to have a portion of their debt ruled non-dischargeable, but again only when they can clearly prove abuse, such as the purchase of costly "luxury items" prior to filing. For the typical person, who simply accumulates debt over a long period of time, and then quits paying when the card is maxed-out, or they lose their job, the issuer doesn't have a leg to stand on for claiming abuse, and they know this.

[wepman]

So, I will be visiting a lawyer within the week. Fortunately, we have quite a few good ones in my area. I'm also going to visit my bank and get ACH revocation on the 4 payday loans and start working on zeroing out the account before closing it. As far as credit cards, I cut them up and I won't be making any payments to them anymore. I'll keep y'all posted.

[tobee43]

So, I will be visiting a lawyer within the week. Fortunately, we have quite a few good ones in my area. I'm also going to visit my bank and get ACH revocation on the 4 payday loans and start working on zeroing out the account before closing it. As far as credit cards, I cut them up and I won't be making any payments to them anymore. I'll keep y'all posted.

best of luck to you. i wish you the best and i'm sure it will all turn out well. yes, make certain you keep us posted!

[wepman]

Well, I've done all the preliminary work and I have an appointment with an attorney next week. I haven't defaulted on anything yet so no phone calls. One quick question: I borrowed $250 from my uncle to make a power bill payment and repaid him recently. Was this a no-no in the world of bankruptcy?

[gemsnroses]

You will find this site very helpful, welcome! I'm sorry to hear about your situation and about your wife and what you guys have been going through. I can relate somewhat but on a different level, my mom is bipolar 1 with psychotic features, it's so tough to deal with. Once you get everything lined up to file, you will feel so much relief! Hang in there!

Here's my story.

My wife (of 12 years) became very ill in the middle of 2012. She had a nervous breakdown and was diagnosed with Major Depression with Psychotic features. Neither of us had ever been sick prior to this. Subsequently, she has been unable to work for the past year due to her condition. Because of the tremendous financial burden I was placed under to care for her, I resorted to using credit cards and later as I was unable to obtain anymore credit traditionally; I used subprime lenders such as Western Sky.

Now, half of my income is going to pay high monthly payments because of the high interest rates. The principle on my accounts is only around $10,000 but after interest were looking at probably triple that with $1,000 month payments. I truly am in a "payday loan cycle".

As we approach October I will be able to get my wife back on insurance (which she lost when she lost her job) and this will drop my net pay by another 300 dollars a month and then, I certainly won't be able to pay my debts .

I believe I need to try for chapter 7 but, my biggest concern is about fraudulent intent. Will going 90 days without using credit help?

[tobee43]

Well, I've done all the preliminary work and I have an appointment with an attorney next week. I haven't defaulted on anything yet so no phone calls. One quick question: I borrowed $250 from my uncle to make a power bill payment and repaid him recently. Was this a no-no in the world of bankruptcy?

others may advise differently, but a bankruptcy while an inquisition of sorts, some things are best left to rest.

[keepsmiling]

Generally speaking, from what I have seen and read, they will want to know about any payments of 600 bucks. That seems to be the "magic" number.

[LadyInTheRed]

others may advise differently, but a bankruptcy while an inquisition of sorts, some things are best left to rest.

This is not something that should be left to rest. It really isn't worth the risk that a hard-nosed trustee discovers the payment somehow and tries to have the Chap 7 discharge denied, no matter how remote the risk may or may not be. The potential harm of reporting it far outweighs the potential harm of being caught hiding it.

Question 3c of the Statement of Financial Affairs says:

c.
All debtors:
List all payments made within one year immediately preceding the commencement of this case to or for the benefit of creditors who are or were insiders. (Married debtors filing under chapter 12 or chapter 13 must include payments by either or both spouses whether or not a joint petition is filed, unless the spouses are separated and
a joint petition is not filed.)

The payment to the uncle should be listed. If it is, the worst that will happen is the trustee will make the uncle pay the $250 back to the BK estate, in which case the OP can pay the uncle back. But, the trustee is not likely to go after such a small amount, especially if your case would otherwise be a no-asset case.

[wepman]

Update: things are going well. I communicated with all of my creditors directly, and they've all offered payment plans. I respectfully denied the payment options and told them that possibly in the future we could negotiate something. I gave them one number to reach me and told them I would be available and wanted to handle this with professionalism. Of course, I didn't mention the BK. Just trying to hold them off for a little while. On a side note: it feels good to see all my paycheck now.

[sbatman]

A note on SSDI: if you go to the medical professional area, all the parameters for each disability are there. My fiance just filed all my medical info in the order of the disability evidential and submitted it two months before the end of the five month waiting period. I was approved two months later, the first day I would have qualified. My schizophrenic son had the same experience. Not always is an attorney needed and not everyone is turned down the first time. One thing is that we didn't file online, we brought in all the records on paper, for both me and my son. Don't know if that's still possible, or if that's why we were approved immediately.

And for those of you who denigrate me as one of the 47%, I only read this board from my hospital type bed in my bedroom. I take about 20 pills/meds daily. I haven't been able to drive in 14 months. It's not a great life, but we have a roof over our heads, plenty to eat and Medicare. I have a wonderful family. I've paid probably $1,000,000+ into Social Security and Medicare, for both me, and the multiple employees in the businesses I've owned, so I don't view myself as a parasite on the system. And I used to be a registered nurse and have helped/saved hundreds, if not thousands of babies/children and adults in my career. I've earned this and my careers have contributed greatly to my disabilities.

Also, three of my four sons have been or are in the military-7 years in the Navy for the oldest, 6 years for the second son, a Marine who was in Fallujah on the ground, out in the city for a year and my youngest is currently serving in the Army. Now, tell me that I haven't earned me SSDI and Medicare.