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My Bankruptcy Journey (Updated 03-18-2019)

jjb0894
Regular Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

This also doesn’t factor in the interest but now the numbers are getting too complex and I’m not that good at math so I think these estimates are good enough.

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Chapter 7 Discharge: March 13, 2019

Message 11 of 39
jjb0894
Regular Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

I realize you guys are not attorneys but I realized two potential problems with my BK case.
1. My attorney knows I sold a car about a month ago to someone who is not a family member. This was so I could make a debt consolidation payment to my creditors.
The problem with this sale, is the seller wanted me to report $200 for the sale so he could pay less taxes and I actually sold it for $1,000.
I’m worried that the trustee may question how much I actually received if I tell him the truth. But the money was deposited to my bank account and immediately paid to creditors, so that’s where that $1,000 randomly came from. I just don’t know if the trustee will take issue with this or not. I was not contemplating bankruptcy when I sold it to him or else I may have not done it that way.
2. The second issue is that I’m afraid creditors may object to my income and call it fraud.
My income did actually change, I made more money last year when I applied for the credit cards than I make this year. I’m worried they will say I incurred the debt under false pretenses.

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Chapter 7 Discharge: March 13, 2019

Message 12 of 39
ScooterMcDoodlebutt
Established Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

I think you’re overthinking this. A difference of $800 in the sale of the car is hardly considered concealing assets. Plus, you have a paper trail of the money going right back out to creditors. Although IMHO you should never be part of someone else’s scheme to pay less tax. If they want to do that let them do it without your involvement. That, to me, is not worth the risk.

 

Your creditors are not going to claim you incurred credit under false pretenses. They are in the money-lending business & see this every day, believe me. You are not the first person to file BK after a significant drop in income.

GL!







Message 13 of 39
Backwoods
Senior Contributor

Re: My Bankruptcy Journey (Not Yet Filed)


@jjb0894 wrote:
I realize you guys are not attorneys but I realized two potential problems with my BK case.
1. My attorney knows I sold a car about a month ago to someone who is not a family member. This was so I could make a debt consolidation payment to my creditors.
The problem with this sale, is the seller wanted me to report $200 for the sale so he could pay less taxes and I actually sold it for $1,000.
I’m worried that the trustee may question how much I actually received if I tell him the truth. But the money was deposited to my bank account and immediately paid to creditors, so that’s where that $1,000 randomly came from. I just don’t know if the trustee will take issue with this or not. I was not contemplating bankruptcy when I sold it to him or else I may have not done it that way.
2. The second issue is that I’m afraid creditors may object to my income and call it fraud.
My income did actually change, I made more money last year when I applied for the credit cards than I make this year. I’m worried they will say I incurred the debt under false pretenses.

Point 1 Just tell the trueth.   Point 2 Don't work about fraud.  Just tell the trueth. 

Message 14 of 39
jjb0894
Regular Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

Maybe I am looking too much into it.

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Chapter 7 Discharge: March 13, 2019

Message 15 of 39
Lurker22
Contributor

Re: My Bankruptcy Journey (Not Yet Filed)


@jjb0894 wrote:
Maybe I am looking too much into it.

yes and it's a scary time but trust your attorney and hide NOTHING from him/her, they'll provide you with the best advice they can but it'll only be good advice if they know everything 

Message 16 of 39
jjb0894
Regular Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

My lawyer called today, they are ready to have us sign the petition.
I’m just gonna be really sure I read it carefully and understand what they put on there.

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Chapter 7 Discharge: March 13, 2019

Message 17 of 39
Lurker22
Contributor

Re: My Bankruptcy Journey (Not Yet Filed)


@jjb0894 wrote:
My lawyer called today, they are ready to have us sign the petition.
I’m just gonna be really sure I read it carefully and understand what they put on there.

yes and remember ask lots of questions if there's something you don't understand and no question is a dumb question 

Message 18 of 39
jjb0894
Regular Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

I don’t know if it updates you guys when I edit the post, but I officially filed today (11-16-18), have a case number and the 341 meeting is set for January 8, 2019.

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Credit One Platinum Rewards Visa, $400 Credit Limit.



Indigo Platinum MasterCard, $300 Credit Limit



Chapter 7 Discharge: March 13, 2019

Message 19 of 39
StartingOver2018
Frequent Contributor

Re: My Bankruptcy Journey (Not Yet Filed)

I was way overly nervous about my 341 meeting as well. Turned out just fine. 😊
BK CH7--Filed September 25, 2018--D/C Jan.4, 2019
{FICO8 Feb.12, 2019--TU 580--EX 600--EQ 626}

Credit One Visa CLOSED by me May 2020!! :-)($500 now $700) Nov. 2018
SelfLender (2 year) Nov. 2018
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Target RedCard ($500 at 4 months $800 six months later $1900) April 2019
Venus Comenity ($500 now $1500) May 2019 no HP
Ann Taylor Loft MC ($1000) June 2020 no HP
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FICO 8 SCORES: 06-04-2020633 TU656 EX652 EQ
Message 20 of 39
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