Posts: 9
Registered: ‎02-01-2008
Credit Cards and BK
Another post here stated that you must refrain from using CCs for the 6 months prior to filing chapter 7. Is this really feasible for someone who relys on CCs to 'make ends meet'? My wife and I realized that we had a problem 6 weeks ago and needed to look for help. We have near stopped (99.9%) charging on our CC's for the last month as chapter 7 is in our future.

We are taking our lawyers advice and are planning on surrendering my wifes current car(owe 15K more than it's worth). He also suggested that my wife and I get new vehicles. My car was worth 3 times the amount of the exemption (owned outright). I have already made a trade/purchase. My wife is set to pick her new vehicle up tonight. Financing is a PITA when you are as overextended as we are... luckly my wifes approval when through before my new loan hit the CRAs.

After reading that post, I'm now worried. With 2 new car payments (plus the current Explorer payment for the time being) we cannot even pretend to make our finances work for another month. (cash flow of -$2800 in 30 days... mortgage is $2600/mo).

I have 2 concerns with our revolving debt utilization and possible objections:

1) We have taken $4200 in CA's within the last 60-90 days. We understand that we may have to pay these back. What might the terms be?

2) We have a $21K unsecured line of credit attached to our checking account (overdrafts pull from loc). This line was opened 7 months ago and has been near maxed out for 2.5 months now. What are the chances that our credit union will object to this debt being discharged? They hold the financing on the car we are surrendering, and on a travel trailer (RV) that we would like to reaffrim (but can live without). The minimum payment on this loc is $420/mo which is larger than all other minimum payments combined.

I thought about calling the CU and telling them to come pick up the explorer... the problem is that EVERY one of their loans has a clause... defaulting on anything (with anyone) gives them the right to demand payoff in full on all outstanding loans.

Life sucks