Comments on: Credit Card Balance Transfer Puts Chapter 7 Options in Jeopardy http://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/ Personal Bankruptcy tips and tricks moderated by Atlanta lawyer Jonathan Ginsberg Tue, 17 Jan 2012 01:57:46 +0000 hourly 1 By: tim Smithhttp://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/#comment-8308 tim Smith Mon, 04 Feb 2008 04:50:44 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=124#comment-8308 Are credit Card balances tranfers allowed with Chapter 13 as well as Chapter 7? Are credit Card balances tranfers allowed with Chapter 13 as well as Chapter 7?

]]> By: Credit Card Balance Transfer Issueshttp://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/#comment-6819 Credit Card Balance Transfer Issues Wed, 19 Sep 2007 11:40:34 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=124#comment-6819 [...] 19, 2007Credit Card Balance Transfer Issues Back in April, I wrote a post about the issue of balance transfers and Chapter 7 bankruptcy.  In this post I note that balance transfers were dangerous because from the perspective of [...] [...] 19, 2007Credit Card Balance Transfer Issues Back in April, I wrote a post about the issue of balance transfers and Chapter 7 bankruptcy.  In this post I note that balance transfers were dangerous because from the perspective of [...]

]]> By: Martha Millerhttp://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/#comment-6768 Martha Miller Fri, 14 Sep 2007 16:03:09 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=124#comment-6768 Jonathan, This has been a matter of some confusion to me because I've been told this advice is common. As a 7 trustee, collecting balance transfers made within 90 days has been a painless way to bring assets into the estate, especially in these times of increasing asset-free cases. I have never seen the credit card company pursue the debtor. Typically, if they have a new value defense the company sends me the account records showing me the subsequent charges, we do the math and they send me a check. We have UST mandated trustee training coming up later this month and this was something I planned to raise. Whatever war stories you have, I'd appreciate. We want to know the consumer bar's concerns and your bar to know the panel's. We all are trying to do our jobs and make a living. thanks, Martha Jonathan,

This has been a matter of some confusion to me because I’ve been told this advice is common. As a 7 trustee, collecting balance transfers made within 90 days has been a painless way to bring assets into the estate, especially in these times of increasing asset-free cases. I have never seen the credit card company pursue the debtor.

Typically, if they have a new value defense the company sends me the account records showing me the subsequent charges, we do the math and they send me a check.

We have UST mandated trustee training coming up later this month and this was something I planned to raise. Whatever war stories you have, I’d appreciate. We want to know the consumer bar’s concerns and your bar to know the panel’s. We all are trying to do our jobs and make a living.

thanks,

Martha

]]> By: What Not to Do Before Bankruptcy at Bankruptcy Law Network - Real Lawyers, Real Solutionshttp://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/#comment-5256 What Not to Do Before Bankruptcy at Bankruptcy Law Network - Real Lawyers, Real Solutions Mon, 14 May 2007 12:47:16 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=124#comment-5256 [...] I read Jonathan Ginsberg’s post about a client who made a mistake that will delay filing his bankruptcy, I was reminded of a [...] [...] I read Jonathan Ginsberg’s post about a client who made a mistake that will delay filing his bankruptcy, I was reminded of a [...]

]]> By: CATCHMEIFYOUCANhttp://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/#comment-5265 CATCHMEIFYOUCAN Thu, 19 Apr 2007 06:32:44 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=124#comment-5265 Guess I slipped under the radar! I was already $55,000 in cc unsecured debt and unsecured loans by end of February 2006 (all of which were caught up in payments). March 06' I applied for another credit card and received $10,000. I transferred the whole balance to pay off another credit card. April 06' I went on a gambling spree (mid APRIL) I actually blew $6000 in cash advances in 2 days from different casinos. I was falling a month behind on cc payments, my loans were covered w/automatic deductions from my checking accts. JULY 06' I filed for Ch13 (due to having 2 full time jobs). The only objection I received was from the Trustee, he didn't like my proposed $250 a month repayment plan. (Even though my Median Test proved I was -$60, schedules I and J showed +$800). I went before the judge and he gave me a choice: pay $800 a month the next 5 years OR quit one job for awhile convert to Ch7 and pay nothing! YOU DO THE MATH ! I made 3 payments all in all in Ch13. The 3rd payment I didn't really need to make but was just covering my butt until the conversion was said and done. OCT 06' converted to Ch7 No Objections, No assets. Not even a mention on the heavy cash advances??? They didn't ask, I wasn't going to quetion it, yah know. JAN 07' DISCHARGED MAR 07' Trustee files no distribution report etc. Now just awaiting closing. I guess I'm feeling "too good to be true!" I was real worried about those cash advances, but since there were no objections, I guess I can stop worrying about creditors coming after me, and I guess their too late to come back and do anything about it ??? CATCHMEIFYOUCAN Guess I slipped under the radar!

I was already $55,000 in cc unsecured debt and unsecured loans by end of February 2006 (all of which were caught up in payments). March 06′ I applied for another credit card and received $10,000. I transferred the whole balance to pay off another credit card. April 06′ I went on a gambling spree (mid APRIL) I actually blew $6000 in cash advances in 2 days from different casinos. I was falling a month behind on cc payments, my loans were covered w/automatic deductions from my checking accts.

JULY 06′ I filed for Ch13 (due to having 2 full time jobs). The only objection I received was from the Trustee, he didn’t like my proposed $250 a month repayment plan. (Even though my Median Test proved I was -$60, schedules I and J showed +$800). I went before the judge and he gave me a choice: pay $800 a month the next 5 years OR quit one job for awhile convert to Ch7 and pay nothing! YOU DO THE MATH !
I made 3 payments all in all in Ch13. The 3rd payment I didn’t really need to make but was just covering my butt until the conversion was said and done.
OCT 06′ converted to Ch7
No Objections, No assets. Not even a mention on the heavy cash advances??? They didn’t ask, I wasn’t going to quetion it, yah know.
JAN 07′ DISCHARGED
MAR 07′ Trustee files no distribution report etc. Now just awaiting closing.

I guess I’m feeling “too good to be true!” I was real worried about those cash advances, but since there were no objections, I guess I can stop worrying about creditors coming after me, and I guess their too late to come back and do anything about it ???

CATCHMEIFYOUCAN

]]> By: Georgehttp://www.thebklawyer.com/thebkblog/2007/04/18/credit-card-balance-transfer-puts-chapter-7-options-in-jeopardy/#comment-5286 George Thu, 19 Apr 2007 01:38:47 +0000 http://host.jonathanginsberg.com/~thebklaw/thebkblog/?p=124#comment-5286 This is not good news. Last October my wife filed for divorce. We still live in the same house and share many, but not all, expenses. We also have a daughter in high school. Most of the credit card debt is in my name although a large share of the debt is family purchases. At first she paid some but quickly decided not to pay anything. She didn't even contribute to groceries or clothes for her own daughter. I tried to keep up with minimum payments and did some borrowing from peter to pay paul. I would pay minimums and then use the cards for gas, food, clothes, etc. The few cards she did pay and then didn't fell short of their minimum and within a short time all creditors had raised their rates to near 30%. In short I won't be able to show a paper trail of good faith payments. I tried to pay but with half the normal family budget and increased expenses I couldn't. What now? This is not good news. Last October my wife filed for divorce. We still live in the same house and share many, but not all, expenses. We also have a daughter in high school. Most of the credit card debt is in my name although a large share of the debt is family purchases. At first she paid some but quickly decided not to pay anything. She didn’t even contribute to groceries or clothes for her own daughter. I tried to keep up with minimum payments and did some borrowing from peter to pay paul. I would pay minimums and then use the cards for gas, food, clothes, etc. The few cards she did pay and then didn’t fell short of their minimum and within a short time all creditors had raised their rates to near 30%. In short I won’t be able to show a paper trail of good faith payments. I tried to pay but with half the normal family budget and increased expenses I couldn’t. What now?

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