Got Into a Bad Predicament

[HopefulInOhio]

Hello all - I've been on here many times talking of my divorce, and then eventually I'm filing bankruptcy. We go to court on Jan 5 for the divorce, and then we'll see when to file the bankruptcy - during the divorce or right after.

I ran into so much trouble this week - my car had major issues, plus if I didn't pay a $500 propane bill, I'd have no heat for my daughter and myself.

No one I know had the money - I had to use a credit card I have saved back with nothing on it. If not, I'd have no heat, nor no car to get to work and I'm paid hourly. If I'm not there, I don't get paid. I had to put $800 on this card.

I get my student loan in 2 weeks and I can pay that back...

My question is - how is this going to affect me when I do file bankruptcy? Will they ask why I paid that amount back when I've paid none on my other cards?

I'm freaking out here - between the divorce, moving out of my 19 year home, and worrying over money, I'm about done in.

Did I mess up royally even though nothing has been filed? I just had no choice and I do want to pay them back so they don't think I committed fraud.

Thank you all for listening.

[SinkingFast]

That's not such a large amount of money, Hope. And it was necessary things. You've got to remember that.

Just mark the date, look 90 days out. For example, 90 days from today would be March 22, 2007.

You might not even be ready to file BK until after then anyway. So make a payment or 2. Payments on $800 won't be much. Certainly no danger of putting you over the $600 total/Creditor in 90 days. Then stop.

Making a payment or 2 is a show of "good faith".

And don't fret over it. You did what you had to do to survive.

[HopefulInOhio]

So once I get my student loan I shouldn't just pay it off? Granted, I could use the money on other expenses....

I just don't want anyone - let alone the courts - thinking I charged this stuff with no intention of paying it back.

90 days is the key? Make a couple of payments then discharge this card as well?

I'm so fried..lol....I know I'm gonna be bald before all this is over with.

Congrats on your discharge..I can't wait for my day to come.

Thanks!

[SinkingFast]

You could pay the balance in full if you wanted. If you're hoping that CC will survive your BK, that might well be a pipe dream.

One Store Card closed our LOC. Zero balance going into BK.

Had one CC with a Zero balance. The Lender closed that acct.

One Store Card survived. Was a $500 LOC pre filing. Reduced to $300 shortly after our 341.

Some people have had better luck than that. But, chances aren't the best that your CC acct will survive the BK.

[bige1030]

So once I get my student loan I shouldn't just pay it off? Granted, I could use the money on other expenses....

Generally, student loans are nondischargeable in bankruptcy, unless you can prove that excepting that debt from discharge would impose an undue hardship on you and your dependents. That's a hard test to pass, since you have to prove three main things:

1. You cannot maintain a minimal lifestyle if the debt weren't discharged.
2. Your circumstances aren't likely to improve for most of the repayment period.
3. You made a good faith effort to repay.

So it really doesn't matter what you do with that money. The student loan creditor is going to get their money back anyway, whether you pay it now or later, unless you can prove undue hardship.

I just don't want anyone - let alone the courts - thinking I charged this stuff with no intention of paying it back.

90 days is the key? Make a couple of payments then discharge this card as well?

You shouldn't worry too much about the preferential transfers rule. That rule exists only to level out the playing field between all creditors of each class. If the trustee were to go after someone about it, s/he would go after the creditor - asking for a return of the money.

So go ahead and make the payment(s). It's a sign that you intend to repay the debt - which would help prove that you had no fraudulent intent.

[sisterfunkhaus]

Honestly, since it wasn't a luxury purchase, I wouldn't necessarliy pay it back. It could be seen as a preferential payment and the trustee might just make them give it back anyway. They COULD object to it being discharged but it wasn't a purchase that was for luxury goods or services, so the judge may just discharge the debt anyway. You could make back a few good faith minimum payments, but I would save the $$$ for a later emergency or necessities. You can't get out of the vicious cc cycle if you never put $$$ back for emergencies.

[CATCHMEIFYOUCAN]

Question about Cash Advances and Discharge



Quick question, if a person has been discharged can the creditors object after the discharge, or is it too late for them since they were given a timeframe to object? Because, I know I've had huge cash advances in APRIL/MAY and filed Ch13 end of July, than converted to Ch7 end of October?

Thanks, Catchmeifyoucan

[FoolAndHisMoney]

Quick question, if a person has been discharged can the creditors object after the discharge, or is it too late for them since they were given a timeframe to object? Because, I know I've had huge cash advances in APRIL/MAY and filed Ch13 end of July, than converted to Ch7 end of October?

Thanks, Catchmeifyoucan

No they cannot object. They have the 60 days to do so then it's over. In rare cases any party of interest can move to revoke your discharge after the deadline if they discovered you had large assets that weren't disclosed.

[bige1030]

Right on! (So long as all creditors who could object were scheduled.)