File Now or Wait?

[Anonymous]

I've already met with an attorney but not yet paid him. His comments on this was "we may need to wait" but he didn't really look into everything at that initial meeting.

I have three personal loans secured by household electronics. On January 5, I renewed two of them for a total cash payout between the two of $639.94. My concern is that this will fall under the presumption of abuse unless I wait to file 90 days from then. (I do plan on making the payments on them up until I file)

I don't want anything at all to cause my case (once I file) to be dismissed. Should I wait until 90 days past that date to file?

Since it's already been a little bit of time since then, that would just have me waiting until the beginning of April, not too far away.

Would I be best served waiting, just to make sure there is nothing that can raise a flag?

The other thing I may do, (if it IS in my best interest to wait) is to pay off the smallest loan (with the most property attached to it) by the end of this month, so that I don't have to worry about redeeming all that during the bankruptcy, and THEN waiting 90 days.

Any advice is greatly appreciated, and please let me know if I have that 90 day timeframe right.

[Anonymous]

If you could hold off until the 3rd of March (my 341) I will let you know the response to that. I renewed my loans as well the month before Bk, but once Midland credit threatened to take me to court, I went ahead and filed. I had the same exact question for my attorney and this was his response :

Me: My name is xxxx and I came into the office on Friday. My apologies for writing on a Sunday and so early. I plan on bringing in the money to file chapter 7 on the 30th,however, I think those small loans are going to stop me due to me just refinancing/renewing those loans at the beginning of December. The loans are over a year old, but I was low on money and needed to renew.

Attorney: Did you receive "new" money or just renew the loans? Thanks

I called and he pretty much said that since I didn't take out a new loan and only renewed the original contract, I would be fine. I will know in two weeks.

[Anonymous]

OH thank you. They actually closed my old loans on these two and re-wrote them as "new" loans. So I'm thinking maybe I should wait until the 90 days or so after teh date I did that.

I think you had responded on another thread I had, regarding secured property. I'll be very interested to find out what happens with that. I wish I didn't have these three. I could pay off the small one and then wait 90 days past that. I'm just so conflicted about what to do!

[Anonymous]

Right, so you had to resign the contract. That's how it's done here too, but it still wasn't new money because I only received maybe $120 off of a loan that was originally $420.

[Anonymous]

Oh so it's like you're actually borrowing what you've already paid into the loan, is that right?

On the one I got about $200 (total loan is around $1800) and the other I got around $400 (total loan $3200).

All of this is making me SO nervous, whew.  I just don't want any flags to come up when I file.

[Anonymous]

Oh I understand completely, but yes, it's what's you paid into them, which is usually the interest. These loans are the reason why I didn't file sooner because I was afraid of losing my property until I sat down and calculated everything.