Planning your BK

[teresa]

I have a co-worker who told me that it took a year for him to file BK after he retained a lawyer, and that when creditors would contact him, he would just refer him to his lawyer. When does BK protection begin?
Also, if I don't want to file for about 6 months, what is your opinion on when I could stop paying some of these creditors I will be filing on? I plan to surrendor my home, but would like to keep my car.

[keepmine]

The automatic stay protection begins when you file. When you give creditors the name of a lawyer you've retained, many will abondon collection efforts since the bk handwriting is on the wall.
I'd stop paying any debt you wish to discharge in bk today.

[jp2861]

Not paying for 6 months shouldn't be a problem. Some here have even suggested waiting 6 months for some cases. I met with my lawyer today and he is suggesting that I wait a couple more months before I file. His reasoning is to add a little more time between my last transactions and the filing date. It will be close to 6 months by the time he wants me to file. The common consensus is to wait the 90 days as the regulations state, but it seems there's something magical about this 6 month timeframe.

maybe someone else can jump in and explain the benefits of waiting 6 months rather than jumping right in after 70/90 days.

[keepmine]

If you file on day 71 afer a cash advance, the creditor may argue that the filing date was spurious-that you waited only long enough to avoid the presumption of abuse argument. Time is your best friend in these deals.

[treehugger1]

I'm thinking the following thoughts on six months. When I was exploring BK 13, several attorneys told me they would want paystubs, bank statements, etc dating back six months. With more insight into BK, I can see how the attorneys might want this to check for preferences, insider payments, etc. (Know your client kind of thing.) In addition, some trustees also require six months of documentation. I suppose if one knows they are going to file BK, and gets a quick legal lecture on the rules from an attorney, the person will probably not go out and create any violations that might hurt him/her in their BK. While trustess can dig back to 12 months (or longer in some states,) it is unlikely that any red flags will be raised if the petitioner can show six months of BK "worthiness." I would think that in most cases, a solid record of "unable to pay" over six months while staying within the rules of asset transfer, preferences and insider issues would probably be enough to convince attorneys and trustees to not dig any deeper. I'm just speculating here

[Bandit]

I have been planning since July. Doesn't feel like I am any closer. I thought January but that is no good. Maybe April or July next year.
I can plan. It is not coming together any time soon.

I suppose if one knows they are going to file BK, and gets a quick legal lecture on the rules from an attorney, the person will probably not go out and create any violations that might hurt him/her in their BK

It feels like I have known forever, but I am not going to put my entire life on hold & stop doing what I would always do even when I know I have to eventually see an attorney.

It is still nice though when I see the others get their discharges & that gives me hope.

[Boscoe]

Bandit - with over 300 posts and you still have not filed yet, you are alot more knowledgable about the bk process than most of us were at your stage. I learned alot from this forum, but alot more from actually going through the process.

[Bandit]

Thanks Boscoe. I came here the second week after my injury being pretty sure where my financial situation was headed. At first I thought I could really pay it all back. I have learned a lot & feel more confident especially when I see the others get discharged. I know there will be more to double check when starting the real paper work. This forum became a personal Journal for me, so I can look back at the events & remember what happened, why I did what I did, & when...

I mostly learned from reviewing & trying to solve other peoples problems then applied the law to help them & solve my own problems to my own circumstance. The FAQ section is real helpful. Of course a lot to studying the law, real cases and you know the rest...

I knew that seeing an attorney, he would just tell me to wait till all the medical bills are in. I can't really plan that. I am pretty sure I have everything else in order when the time comes. BK & BKforum have become the best health insurance policy & financial physician anyone could ask for