Questions before meeting with an attorney

[mrich1974]

We are only slightly over the monthly income level for ch 7, I'm not sure if we pass the means test yet. One concern I have is our three minor children have savings accounts that have our names on them with our bank that we owe on a line of credit. Will they take the money or will it have to be surrendered during BK? It's not a large amount, over three acoounts close to $5000. This was money they earned to save for cars.

We we have been paying bills but have been relying solely on cc for all living expenses for the last two months. Will this be considered fraud for using our cc before we file? We have been sinking for a long time but have been trying to hold on.


If we get get advice from an attorney to advise us on timing can anything be held against us, meaning waiting to file until tax return or those types of questions.

[justbroke]

[QUOTE=mrich1974;n1015689]We are only slightly over the monthly income level for ch 7, I'm not sure if we pass the means test yet. One concern I have is our three minor children have savings accounts that have our names on them with our bank that we owe on a line of credit. Will they take the money or will it have to be surrendered during BK? It's not a large amount, over three acoounts close to $5000. This was money they earned to save for cars.

It probably not an issue unless you were/are hiding money in the custodial account. It's typically not an issue but you do need to disclose the fact that you control someone property or another person/persons. There is a very specific question on the Statement of Financial Affairs (SoFA) regarding this type of property.

SoFA Part 9: Identify Property You Hold or Control for Someone Else

23. Do you hold or control any property that someone else owns? Include any property you borrowed from, are storing for, or hold in trust for someone.

We we have been paying bills but have been relying solely on cc for all living expenses for the last two months. Will this be considered fraud for using our cc before we file? We have been sinking for a long time but have been trying to hold on.

Your attorney will likely instruct you to immediately stop using the credit cards. You do not want to be in a position where you used those cards, incurring debt, with no intention to pay because that is the definition of fraud. So long as you haven't been charging things that are considered "luxury" items (of more than about $500 to s single creditor) within 90 days of filing, I have found creditors to be forgiving.