Chapter 7 BK and Divorce Questions

[Anonymous]

Hi,

I have several questions regarding my situation and I'll try to make it as simple as possible. 

Basically, I'm going through a divorce (filed in February) and since my soon to be ex, quit his full time job in December 2007, I incurred a mountain of credit card debt trying to pay the mortgage and medical insurance all on my own credit cards.  In 2005, we took out an equity loan (in my name only because I was the one with the better credit), and I just found out that this loan (of 60k)  is not assumable.  Also, I am self employed and have a couple of business credit cards that I also used to pay the bills.  My business is not a corporation, the CC's are just in my name and business name. 

My divorce attorney has said that she will do the bankruptcy, but here are my questions:

1) She said to wait on the BK, because it will freeze up my divorce case, but to stop making the minimum payments.....is that accurate advice?

2) Should I stop making payments on the "business" credit cards too- or are they considered separate?

3) A friend says that if I BK on the American Express business bill, AMEX will never extend credit to me again,

so I'm thinking about continuing to make payments on it.  Will that be acceptable or will it cause problems for me at the trustee meeting?

4) Another concern is that I had to make some purchases because I moved during my divorce on credit like just paying for movers, furniture, etc, but if I file beyond the 90 days,  will I have to repay that too?

Any advice would be appreciated-thank you.

[Anonymous]

I can tell you that AMEX will re-extend credit back to you if/when (1) your BK falls off your CR;  in the BK (2) you have fully repaid them the amount you owed to them and discharged from them in your BK; and (3) your then current credit is in reasonable shape.

[Imhotrodcrazy]

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@Anonymous wrote:

Hi,

I have several questions regarding my situation and I'll try to make it as simple as possible. 

Basically, I'm going through a divorce (filed in February) and since my soon to be ex, quit his full time job in December 2007, I incurred a mountain of credit card debt trying to pay the mortgage and medical insurance all on my own credit cards.  In 2005, we took out an equity loan (in my name only because I was the one with the better credit), and I just found out that this loan (of 60k)  is not assumable.  Also, I am self employed and have a couple of business credit cards that I also used to pay the bills.  My business is not a corporation, the CC's are just in my name and business name. 

My divorce attorney has said that she will do the bankruptcy, but here are my questions:

1) She said to wait on the BK, because it will freeze up my divorce case, but to stop making the minimum payments.....is that accurate advice?

2) Should I stop making payments on the "business" credit cards too- or are they considered separate?

3) A friend says that if I BK on the American Express business bill, AMEX will never extend credit to me again,

so I'm thinking about continuing to make payments on it.  Will that be acceptable or will it cause problems for me at the trustee meeting?

4) Another concern is that I had to make some purchases because I moved during my divorce on credit like just paying for movers, furniture, etc, but if I file beyond the 90 days,  will I have to repay that too?

Any advice would be appreciated-thank you.

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I don't have much use, or faith, in attorneys, having fired 3 of them over the past 11 yrs.  I went thru a divorce and a bk.  IMO, I would not let my "divorce" attorney handle my bk.  My past experience was, the 3 attorneys that I fired were all "divorce" attorneys.  The only attorney that did everything she said she would, when she would, was my bk attorney.  Good luck to you. 

[Anonymous]

First, any payments made to creditors within 30 to 60 days of a bk filing (on unsecured debts) can be demanded to be returned to the court by the trustee.  Causes problems because the  creditors usually don't comply and just slows things down.

If you are not incorporated, you'll be required to list all credit cards, regardless of what you use them for.  Whether you get to reaffirm any "business" debt will be up to the trustee and the court, though sometimes they will so that you can continue your business. 

What causes credit cards to object to filings due to purchases are "luxury" purchases, so whether what you did falls into that classification depends on what you bought and how much you got charged for moving.  Your lawyer should have an idea and guide you there.

Lastly, find another attorney to handle the bk.  A divorce att in bk court is kind of like having a tax attorney defend a murder suspect.

REMEMBER, THIS IS NOT LEGAL ADVICE.