Attorney 3000k

[danaf]

I just spoke with a reputable bk attorney in my town. We had a good rapport and I liked him. Gave him my issues and he seemed honest and forthcoming.

Except - I brought up the 70/90 day rule on recent bal transfers & also minor charges. He said 'it depends'. He also said, why continue paying? That it was throwing good money after bad debt. He cya'd himself with, of course he'd need to see everything but .....

So far he is the most expensive I've spoken to.

If I was 90 days out then I think I'd feel comfortable not paying as I pursue bk but I don't think it is wise to stop now. Just my gut.

[HHM]

Nope, you really are throwing good money after bad. If you know you are going to be filing BK, then it does you very little good to keep making payments to "unsecured" creditors. If you want to keep your car, etc, you need to keep making those payments, if you don't want to keep your car, then stop paying on that loan as well.

[BKTango]

HHM is correct and so is the lawyer. Once you have made the decision to file bankruptcy you really need to stop paying the creditors you intend on discharging and continue to pay on those you will be keeping (home, car, etc.). You need to learn to live off of the cash in your hand and that means, all the money you have been paying to the cc's or other creditors that will be discharged will now need to be spent on actual living exspenses. The lawyer gave you good advice. You could stop paying now, save that money to retain the lawyer and prepare to file. Use the rest of the money to pay for your needs. Once the 90 days is up, if you need to wait that long for those charges and transfers, your paperwork will be ready to file.

[Runnin on empty]

Agreed. If you're going to discharge the debts via BK, it doesn't make any sense to continue to pay on them. Save the money, spend some on things you might have been putting off (clothes, car repairs, home repairs) but keep it reasonable and of course, account for every penny with receipts, the trustee will want to know where the extra money has gone.

[danaf]

Wow, thanks!

I was under the impression that making min payments at least through the 90 days mattered in terms of intent.

[HHM]

The 70/90 day rule is only an issue for "new charges" that are made within 70/90 days before you file BK. Also, the 70/90 rule has no "intent" requirement, charges or loans taking out under the 70/90 day rule are "presumed" fraudulent. Which means, the court considers those charges fraudulent regardless of your intent.

[danaf]

ok, so then it doesn't matter if I pay what matters is that at least 3 mos pass inbetween my last charges and bk?

i'm sorry for asking so many stupid questions. I guess I just don't get it. It is presumed fraudulent if you charge up to bk but if you make charges, and don't make any payments between last charges and bk then it's ok just as long as there are 90 days inbetween?

[CATCHMEIFYOUCAN]

danaf

ok, so then it doesn't matter if I pay what matters is that at least 3 mos pass inbetween my last charges and bk?

3 mos will help

i'm sorry for asking so many stupid questions.

no question is stupid

I guess I just don't get it. It is presumed fraudulent if you charge up to bk but if you make charges, and don't make any payments between last charges and bk then it's ok just as long as there are 90 days inbetween?

the creditors will have to prove your charges were fraudulent, if you had heavy cash advances and did not pay back any of it than most likely its suspicious (i prefer suspicious over fraudulent)

90 day rule definitely helps

BEST OF LUCK, CMIYC

[BKTango]

ok, so then it doesn't matter if I pay what matters is that at least 3 mos pass inbetween my last charges and bk?

i'm sorry for asking so many stupid questions. I guess I just don't get it. It is presumed fraudulent if you charge up to bk but if you make charges, and don't make any payments between last charges and bk then it's ok just as long as there are 90 days inbetween?

No question is ever stupid. Maybe you can look at it this way. 90 days prior to your filing your bankruptcy petition it doesn't matter whether or not you have been making payments on the debts you are listing to be discharged. (for example I hadn't made a payment in a little over a year on those debts) There is no reason to "look like you have good faith" and still make those payments to the day you file. Doing that kinda makes it look like you have the money to pay them so why are you filing? However you definitely want to always continue to be current with those debts you are going to be keeping (home, car, etc.) Now 90 days prior to filing you do not want to use those cc's. If you use your cc's within 90 days prior to filing it's looked at as possible fraud, and the creditor could object to the discharge of that particular debt.