April 24, 2008

• Recent Credit Card Use and Filing for Bankruptcy - What Are Some Guidelines?

  Most bankruptcy lawyers will tell you that credit card contributes to most consumer bankruptcy case filings.  Often, overwhelming credit card debt is the primary reason for a filing.  For example, if you have $10,000 or more in credit card debt, and you send in only the minimum payment of 2% of the balance each month, you will need over 50 years to pay off your debt.  You can run your own numbers using an on-line credit card interest calculator. (…)

March 29, 2008

• Pre-Bankruptcy Balance Transfer - the Debtor Wins…This Time

  My Bankruptcy Law Network colleague, Wendell Sherk, recently posted a very helpful case study about a case called In re Brumbaugh in Ohio involving credit card use prior to bankruptcy.  Although Wendell's case study looks to 6th Circuit law (whereas cases filed in Georgia would look to 11th Circuit precedent), I think that the reasoning used by the judge in the Brumbaugh case can give you some insight as to how bankruptcy judges deal with real life situations. (…)

April 18, 2007

• Credit Card Balance Transfer Puts Chapter 7 Options in Jeopardy

  This morning, I received an email from a potential client who made a very bad decision that will likely keep him from filing Chapter 7 for six months to a year.  Other than this one mistake, he is a clear Chapter 7 candidate:

  his household income is below the median - so we do not have to deal with the means test his house is modest - valued at around $120,000 with mortgage debt equal to or above the value.  He is also prepared to surrender his house he has $70,000 in credit card bills - all fairly old he has $1,000 of medical debt

  What, then, is the problem? (…)

December 11, 2006

• What Prompts a Dischargeability Objection by a Credit Card Lender?

  First, I think you have a very insightful blog about bankruptcy issues. I refer your blog to the bankruptcyforum.com sight to all the guest and members there. (…)

June 5, 2006

• Crazy Credit Card Enticements

  Just when I thought I had seen it all, today's mail brought a credit card promotion called "Upfront Rewards" from a credit card issuing bank.  The promotion offers immediate delivery of a Dell laptop if the applicant agrees to transfer an existing $5,000 balance and "maintain a minimum balance of $3,500 for at least 18 months.  Should the balance fall below $3,500 then the card will be charged a flat $600 fee. (…)

May 30, 2006

• Recent Use of Credit Cards - How Long Should He Wait to File?

  I wanted to get an opinion on whether I can file or not. I spoke with another attorney who stated that I needed to wait for awhile because I have recently used my credit cards. (…)