Two Question..Worried....

[auttienkassiemo]

I have two questions that I have been wondering about...We met with our lawyer last night. We have an appointment to go back on the 27th to do the means testing and find out whether we are a 7 or 13.

i'm a bit concerned on the fact that on 3 of our cards we have some recent large purchases such as a laptop computer, shed, and some furniture for the kids room (tv stand and computer stand). I'm talking like 2 or so months ago. What are the chances that home depot, best buy, and seventh avenue are going to want to take my stuff back? Our attorney said to wait at least 90 days before we file and we are but those are still pretty big purchases and I'm worried sick about them.

Second thing is I asked about our tax refund and told her we had planned to pay it to our credit union credit card, however, she said not to do that because of preferential payments (I think). I'm not sure...What exactly is that?

[justbroke]

i'm a bit concerned on the fact that on 3 of our cards we have some recent large purchases such as a laptop computer, shed, and some furniture for the kids room (tv stand and computer stand). I'm talking like 2 or so months ago. What are the chances that home depot, best buy, and seventh avenue are going to want to take my stuff back? Our attorney said to wait at least 90 days before we file and we are but those are still pretty big purchases and I'm worried sick about them.

You'll just have to see what happens. The computer, sheesh, it lost 50% of its value when you took it home! Since you purchased them with "store cards" and not MasterCard, VISA, AMEX, etc, they do have a security lien on the purchases.

Having wrote that, I haven't yet had any of those "store credit card" companies make any secured Claim against me! They have all been unsecured claims (so far). Your mileage may vary.

Besides, 90 days isn't the magic number for those types of purchases (which have automatic liens). It's really one year. But again, the likelihood of them filing as secured, is 50-50.

Second thing is I asked about our tax refund and told her we had planned to pay it to our credit union credit card, however, she said not to do that because of preferential payments (I think). I'm not sure...What exactly is that?

DO NOT PAY YOUR CREDIT CARDS OR ANYONE!!!!! Listen to your lawyer.

It could cause all sorts of trouble because the Trustee may see it as a preferential transfer (you paid one creditor over another). It's not bad for you, in the long run, it just creates more paperwork. Do not pay anyone a dime, until your lawyer instructs you to.

[magyar123]

Regarding your first issue: Your lawyer is right - wait at least 90 days before you file, but Home Depot, Best Buy, and 7th Avenue might still want you to reaffirm those bebts IF you used their credit cards. If you used a run of the mill Visa or Mastercard they won't.
Second issue: Paying on one credit card BUT not others is considered preferential. You're trying to lower the debt on one, but not the others.