Fraud?

[lady elaine]

Yep, that is exactly the scenario for us. I finally sat down, did some growing up and realized that this is absolutley never going to get us to come out ahead...ever. My concern is now what's done is done. Did anyone else run into this and have to explain what went on with the cash advances? I
As I said before, we know now that it is the worst mistake you could likely make, but it is done and so now, I am quite concerned.
In regards to the original poster....don't do it. Do not take a cash advance on your cc, it is a vicious cycle that will get you nowhere.

[AngelinaCatHub]

I feel the same way you do and I am terrified of what is going to come up when we file. We did cash advances to pay for the mortgage, other cc's because we truly were on track to get a large (80k bonus) from my husbands work, but then the economy keeps on getting worse and worse and his job is directly tied to the housing market and well here we are planning on filing.
I am truly terrified of what the courts will say and what can I say back? We were idiots, made huge mistakes and were hoping for something that we should have seen was never going to happen?

[ssdsco]

I am truly terrified of what the courts will say and what can I say back? We were idiots, made huge mistakes and were hoping for something that we should have seen was never going to happen?

BK is not like that. It's more like filing a complicated tax return where professional help is always advised. Do some more reading in the forum and you'll feel better about getting your fresh start.

[WoodSprite]

the WORST mistake?

we know now that it is the worst mistake you could likely make

Oh, I doubt that. We could probably all chip in with a worse "worst mistake you could make"...waaay worse...because we've made them all!

I'll start: When I was desperate and terrified (before I found this forum) I cashed out a $100K 401K to try and pay off my creditors. It wasn't enough, of course, because I got penalized to the tune of 20% off the top, and the remainder was treated as income for tax purposes. And of course as we all know

(all together, now:)
MY 401K WAS EXEMPT FROM THE BK!!

I could be looking forward to a new start WITH 100K still safely stashed away, rather than a new start without two nickels to rub together.

And even that probably wasn't the worst mistake you could make.

Yep...what he said. 'Hub knows what he's talking about. You're on the right path, and you've found a great source of support and solid info. Give yourself some credit (no, not that kind of credit!), and keep moving.

[lady elaine]

Wow, you guys are all kind of awesome...and making me feel so much better about all of this already.
This whole thing is such a roller coaster. One day you feel like you may just be ok and then the next a thousand worries come flooding your head and you start freaking out about stuff.
Ugh, cannot wait till this is all over with!

[WoodSprite]

Wow, you guys are all kind of awesome...and making me feel so much better about all of this already.

That's what we're here for. Before you know it you'll be helping somebody out yourself.

[car67]

Duly noted but heck u can still squeeze 90 days rent free I would think worse case and that should allow somone to save for a decent move to an affordable location..... Of course I dont want to steer anyone wrong...... I understand the fear and agree there is lot of good advice on here.... thanks

[Frogge]

Well, here is yet another thread that reminds me I'm in the same boat.

Breezyday, your story is VERY similar to ours. My husband also could not find work in his field where we were, so we moved to a better life... and CC use ran rampant to keep up with all of it. We tried for nearly a year after leaving our home behind, robbing Peter to pay Paul etc. to make it until the house sold, thinking our two steady jobs would straighten us out eventually. We are waiting for the house business to settle before considering BK.

I know some people will advise against the cash advance, and though it is a risk not knowing how/ when your foreclosure will pan out, I don't blame you a bit. I personally would do it if I were in your shoes. I cashed out my 401K too, and I wished so much I hadn't, it did nothing for us but give us a false feeling that we were keeping our heads above water. The cash advance would help get you through for a while, but I'd just suggest you have an exit plan for later down the line when the cash is gone. By then, you may have resolution on the house, but then again you may not, and find yourself eyeballing another card for more.. then you might have a problem.

Does this make sense? I feel like I'm rambling, sorry.. I hope I'm getting my point across.

[Flamingo]

[QUOTE=WoodSprite;184370]Oh, I doubt that. We could probably all chip in with a worse "worst mistake you could make"...waaay worse...because we've made them all!

I'll start: When I was desperate and terrified (before I found this forum) I cashed out a $100K 401K to try and pay off my creditors. It wasn't enough, of course, because I got penalized to the tune of 20% off the top, and the remainder was treated as income for tax purposes. And of course as we all know

(all together, now:)
MY 401K WAS EXEMPT FROM THE BK!!

Same for us as to my hubby's 401(k) but it was not as much as you took out! Ouch!!! We got BAD advice on another BK forum in 2001 (not this one - I don't think it existed at that time) and were informed that the trustee was going to take the 401(k) anyway so you might as well take it out - well, that goes to show you how some folks are on internet forums. They give bad advice on purpose for the pleasure of it. To the OP - you won't find that here as this forum is well monitored and has fantastic posters on it that will guide you as much as they can from step one to discharge (and if you do have a 401(k), don't touch it and forget you have it!). And everyone has different experiences.

[Help!]

Examples of Fraud - US Trustee Program

Straight from the horse's mouth:

http://www.usdoj.gov/ust/eo/public_affairs/press/docs/silver_screen_final_10-28-04.htm

These are the types of fraudulent activities that will land you in jail.

Examples of others that will (at the very least) put a Ch. 7 case on the fast-track to dismissal with prejudice:

http://www.usdoj.gov/ust/eo/ust_org/ustp_manual/volume5/vol5ch08.htm#5-8.3

[WoodSprite]

Straight from the horse's mouth:

http://www.usdoj.gov/ust/eo/public_affairs/press/docs/silver_screen_final_10-28-04.htm

These are the types of fraudulent activities that will land you in jail.

Examples of others that will (at the very least) put a Ch. 7 case on the fast-track to dismissal with prejudice:

http://www.usdoj.gov/ust/eo/ust_org/...ch08.htm#5-8.3

Looks like a sticky to me.

[Help!]

Here's one that surprised me... 33 months in prison seems pretty harsh for transferring a few assets and buying some unnecessary items with credit cards before filing. I guess he should have waited longer than a month to file!

http://www.bizjournals.com/wichita/stories/2008/07/21/daily14.html

[Frogge]

Here's one that surprised me... 33 months in prison seems pretty harsh for transferring a few assets and buying some unnecessary items with credit cards before filing. I guess he should have waited longer than a month to file!

http://www.bizjournals.com/wichita/s...1/daily14.html

Actually, I know people that are familiar with this clown. He initially faced many years in prison. He is a poster child for absolute, slam-dunk, in-your-face fraud.

[Help!]

Actually, I know people that are familiar with this clown. He initially faced many years in prison. He is a poster child for absolute, slam-dunk, in-your-face fraud.

That's right, you're in KS... Well then, 33 months was a deal! He sounded fairly benign in the article, but it must not have been telling the whole story.

[Frogge]

That's right, you're in KS... Well then, 33 months was a deal! He sounded fairly benign in the article, but it must not have been telling the whole story.

Yes, from what I understand there's a lot more to the story. Drama, drama... LOL