What to do BEFORE filing for BK- Chapter 7

[greengoddess]

I have had perfect credit my entire life (except for the fact that now
I don't earn the income I once did and my debt is 30 grand) My score was
still 850 4 months ago. Anyway, my credit cards are NOT maxed out and
I have not missed any payments, but my question is this, I need to
pull out cash (like a $2000 cash advance) in order to move into a new apartment. How much is safe to charge since I'm planning on filing in the next 2-3 months? Or, how long do I have to wait to file after my last credit card use?

I had heard that it's a bad idea to max out your cards before heading
to court. Another attorney told me I have to wait 90 days after I last used any one of my credit cards before filing for BK. But what if I continue with my normal charging and then paying my minimums? Can anyone advise? I would so appreciate it! I want to do whatever it takes to have my slate wiped clean and not have my filing be denied.
Thank you,

[jbr12]

I had similar questions as you, and someone told me wait atleast 90 days to file after any large purchases on CCs.... I think the limit is $500

[brainless twit]

You will definitely want to check with an attorney to be sure. Ours asked if we had charged more than $600 on any one card within the past 90 days, but the standards may differ from state to state. It's generally a good idea not to use them if possible, but as long as you haven't made any large purchases or withdrawals you should be fine.

[SinkingFast]

The rule is 70 days on Cash Advances and Convenience Checks uses in excess of $750. 90 days on CC purchases in excess of $500. That's for "luxury goods and services".

But every attny we talked to did not want to file within that window for any charges.

[EmmaT]

About 2 months before I filed, I cashed a $10,000 convenience check and put it into my checking account. With the money I paid off other credit cards and put levelers on my RV. I had done the switching from credit card to credit card for many years, since I got lots of offers for 0%, 2.99% for the life of the loan, 3.99% for 6 months, etc. all the time. I kept moving debt around to save on interest charges. I also was in the habit of paying much more than minimum. Consequently, nobody even mentioned it, not even the bank who ended up with that 10K debt, incidentially the same bank that had my RV loan and ended up with the RV that had above mentioned levelers installed on it. The banks look for obvious fraud, in other words, don't go out and buy a plasma TV, a wardrobe of clothes, a diamond necklace, and a vacation to Hawaii, if that's not your normal pattern of credit card use. I had retired from a well paying job just 4 months before filing. My income had been cut by more than half, and I just had not planned very well in advance. They could never have accused me of fraud, just of unbelievable stupidity (not against the law just yet!).

[SinkingFast]

About 2 months before I filed, I cashed a $10,000 convenience check and put it into my checking account. With the money I paid off other credit cards and put levelers on my RV. I had done the switching from credit card to credit card for many years, since I got lots of offers for 0%, 2.99% for the life of the loan, 3.99% for 6 months, etc. all the time. I kept moving debt around to save on interest charges. I also was in the habit of paying much more than minimum. Consequently, nobody even mentioned it, not even the bank who ended up with that 10K debt, incidentially the same bank that had my RV loan and ended up with the RV that had above mentioned levelers installed on it. The banks look for obvious fraud, in other words, don't go out and buy a plasma TV, a wardrobe of clothes, a diamond necklace, and a vacation to Hawaii, if that's not your normal pattern of credit card use. I had retired from a well paying job just 4 months before filing. My income had been cut by more than half, and I just had not planned very well in advance. They could never have accused me of fraud, just of unbelievable stupidity (not against the law just yet!).

No Offense intended here, EmmaT, but you filed Old Law. You're just about to complete your Ch 13 plan.

New Law, Creditors are playing hardball.

Here's a couple of examples where CC companies have come back on people filing BK since the law changed:

http://www.bankruptcyforum.com/showt...t=cash+advance

http://www.bankruptcyforum.com/showt...ght=settlement

We have to be even more careful now than before the laws changed.

[FoolAndHisMoney]

I had heard that it's a bad idea to max out your cards before heading
to court.
Michelle

This is true.

Best bet is to cut the card up and find another way. You don't want to add anymore problems to your case if you file.

[greengoddess]

When do I stop paying on my cards too? At this point, I'm a renter who's looking to get into another apartment that I will be in for a number of years, BUT, I would need to pull $1500 as a cash advance to pay for a new place to live . Once I file bankruptcy, I am guessing that I will be unable to find a landlord who will rent to me, so I want to make sure I'm in a place I'm going to like for at least a couple of years..I'm trying to balance the act of searching quick for a place to live BEFORE filing but I also need my credit rating good just before the perspective landlords run a report on me..This is not fun! I have never even been late a day of my cards!

[SinkingFast]

Renting is tricky.

You'll have to get that done before you file, or you'll have to wait until you're discharged. Landlords won't take you during an open and active BK. You can discharge your Lease and they know it.

Best thing to do is ask what their Credit Check proceedures are before you apply. You don't wanna waste app fees when you'll likely be turned down. Most larger apt complexes check credit where many smaller, private individual landlords don't.

What worked for us was honesty. Sorta. Our house was in Foreclosure so I told our Landlord that. Didn't mention about Credit and prospective BK coming. The Landlord is a real estate agent. She deals with people who've had to move for a job and wound up in Foreclosure so it was no big deal to her. All she wanted was proof of employment. She accepted a copy of Hubby's pay stub. We got a great place and we're very happy here.

It may take a bit more work than normal, but you'll find a place.

Wanted to add,.......... We quit paying CC's in January and moved in here the beginning of June. So it can be done.

[BassBoy]

From my experience, it can sometimes be easier getting a place from a homeowner that is renting the property. When we were looking, and in active BK, we were up front with the homeowners we spoke to. Most wanted us to wait until we were discharged. However, the homeowner where we are renting now didn't even run a credit check. Sometimes you can get lucky and find a homeowner that doesn't check credit. It's rare though.

Most of the apartment complexes we spoke to (this was a last resort for us) wanted us to be discharged and others said we had to be discharged for 1 year before applying.

BTW, we made our agreements with our lanlord before we got our discharge. He only wanted proof of income. In this case, we got so lucky.

[FilingOnMyOwn]

I'd just stop using the cards for 3 months, and save the cash that you need. If you're going to do an extreme thing like filing bk, you want to be on the safe side.

[CATCHMEIFYOUCAN]

Objections

If a creditor objects, lets say they object and complain that the consumer had a cash advance of $2000 (but the balance of the card is $10,000), are they just seeking the $2000 back or the entire balance as well?

Catchmeifyoucan

[tradewiz50]

I need to pull out cash (like a $2000 cash advance) in order to move into a new apartment. How much is safe to charge since I'm planning on filing in the next 2-3 months? Or, how long do I have to wait to file after my last credit card use?

I had heard that it's a bad idea to max out your cards before heading
to court. Another attorney told me I have to wait 90 days after I last used any one of my credit cards before filing for BK.

What your planning on doing may be constituted as fraud.