NFCU cap one credit cards please help chp 7

[SSH0126]

Okay just recvd confirmation.  I can close the card and the funds would go back to me.

[Anonymous]

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@SSH0126 wrote:

Okay just recvd confirmation.  I can close the card and the funds would go back to me.

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Edited:  Just putting this out there in case you would use your refunded funds to payoff the balance.  I haven't seen anyone mention preferential treatment yet, it's important to have knowledge of it.

Be careful here with preferential treatment, you might be walking a fine line and I wouldn't want to see you have any issues with the trustee over it.

Any payment to a creditor over $600 in the past 90 days could be viewed as preferential treatment (someone correct me if I have the $ amount wrong).  So if you close the account, the funds are returned and you pay them, you need to wait a few months to file BK.  Even if they used the funds to apply to the balance, the trustee will see this and could still consider it preferential treatment.  I would check with your BK attorney before doing anything.

[SSH0126]

How is preferential treatment if I am asking for the account to be closed and get my money put back into my savings account? Also if I am closing these accounts down ???????????????

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@Anonymous wrote:

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@SSH0126 wrote:

Okay just recvd confirmation.  I can close the card and the funds would go back to me.

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Edited:  Just putting this out there in case you would use your refunded funds to payoff the balance.  I haven't seen anyone mention preferential treatment yet, it's important to have knowledge of it.

Be careful here with preferential treatment, you might be walking a fine line and I wouldn't want to see you have any issues with the trustee over it.

Any payment to a creditor over $600 in the past 90 days could be viewed as preferential treatment (someone correct me if I have the $ amount wrong).  So if you close the account, the funds are returned and you pay them, you need to wait a few months to file BK.  Even if they used the funds to apply to the balance, the trustee will see this and could still consider it preferential treatment.  I would check with your BK attorney before doing anything.

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[Anonymous]

The statement below is WHY I mentioned preferential treatment. 

From NFCU's own website:

Let the Deposit Cover You: When closing your nRewards Secured account, your initial deposit will be returned, provided the account is in good standing and the full balance paid. If you're in default, the deposit will be used to cover those debts.

So based on their website it appears that they will require you to pay the balance in full upon closure OR take your balance owed from your deposit and return the excess to you.  Based on an earlier post your balance is $799 and your CL (deposit) is $800.  So when you close it they will refund you $1 unless you pay the balance.  Either way, pay them or let them take it from the deposit, you will have paid the creditor in excess of the preferential treatment threshold if you are planning to file in less than 90 days. 

[SSH0126]

I kinda see what you are getting at now. we are wanting to file as eariler as July 2016 but we are doing as much research as possble first so we know what to expect what to do and know do but we are for sure filing. 

Can anyone tell me why they ask if someone is paying child support at the 341 meeting? My spouse pays on time but he does owe a little bit from when he was waiting on his disability to be approved..just want to be prepared

Also when you file can people or other government entities see the details in your bk like who you owe money to how much income you have etc? 

Looks like the Texas means test is  4 Member Household - $68,566.00..so as long as we are under that yearly we should be okay? We have way more debt than that..

Do we have to bring leases to where we live or can we just tell them how much we pay for rent?

Thank you kindly. 

[Anonymous]

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@SSH0126 wrote:

I kinda see what you are getting at now. we are wanting to file as eariler as July 2016 but we are doing as much research as possble first so we know what to expect what to do and know do but we are for sure filing. 

Can anyone tell me why they ask if someone is paying child support at the 341 meeting? My spouse pays on time but he does owe a little bit from when he was waiting on his disability to be approved..just want to be prepared

Also when you file can people or other government entities see the details in your bk like who you owe money to how much income you have etc? 

Looks like the Texas means test is  4 Member Household - $68,566.00..so as long as we are under that yearly we should be okay? We have way more debt than that..

Do we have to bring leases to where we live or can we just tell them how much we pay for rent?

Thank you kindly. 

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Child Support - On your paperwork, you should include the amount he pays and the back support.  Even if it's not eligible to be wiped out in bankruptcy, they need a complete list of creditors and debt.  They assign each one a priority in case there is any money to be recovered and paid back.  The trustee can ask you just about anything, I wouldn't sweat the list of questions they could come up with (I was grilled about my 3 year old divorce settlement, something in it just bugged him).  Just answer honestly at your 341 meeting and it will be fine.

Who can see the information - I don't know for sure

The means test question - first there is a Median income test they will use.  Looks like $68,655 is the Median income for a family of 4.  If you make less than this, you are eligible to file ch7.  If you make more than this, you need to pass the means test for a ch7.  The means test will look and your income and all of your debts to determine your eligibility.  I made too much to pass the median income but had enough debt to satisfy the means test.

I had to supply a copy of my lease.  They do not believe anything you say verbally, they want it in writing.  The absolute worse part of this whole thing was filling out the paperwork and getting copies of everything for the attorney.  Everything else was a piece of cake.

Hope that helps answer these questions

[SSH0126]

Yeah that did..I think I sent you a PM too. I will ask here though since youre on lol. 

What do you think about what they will want/do about the bank accounts if I open this new bank account will they make me go back and the old bank for statements. We are going to open it today and as soon as our direct deposits go into the new account we will be closing all navy accounts.

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@Anonymous wrote:

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@SSH0126 wrote:

I kinda see what you are getting at now. we are wanting to file as eariler as July 2016 but we are doing as much research as possble first so we know what to expect what to do and know do but we are for sure filing. 

Can anyone tell me why they ask if someone is paying child support at the 341 meeting? My spouse pays on time but he does owe a little bit from when he was waiting on his disability to be approved..just want to be prepared

Also when you file can people or other government entities see the details in your bk like who you owe money to how much income you have etc? 

Looks like the Texas means test is  4 Member Household - $68,566.00..so as long as we are under that yearly we should be okay? We have way more debt than that..

Do we have to bring leases to where we live or can we just tell them how much we pay for rent?

Thank you kindly. 

---

Child Support - On your paperwork, you should include the amount he pays and the back support.  Even if it's not eligible to be wiped out in bankruptcy, they need a complete list of creditors and debt.  They assign each one a priority in case there is any money to be recovered and paid back.  The trustee can ask you just about anything, I wouldn't sweat the list of questions they could come up with (I was grilled about my 3 year old divorce settlement, something in it just bugged him).  Just answer honestly at your 341 meeting and it will be fine.

Who can see the information - I don't know for sure

The means test question - first there is a Median income test they will use.  Looks like $68,655 is the Median income for a family of 4.  If you make less than this, you are eligible to file ch7.  If you make more than this, you need to pass the means test for a ch7.  The means test will look and your income and all of your debts to determine your eligibility.  I made too much to pass the median income but had enough debt to satisfy the means test.

I had to supply a copy of my lease.  They do not believe anything you say verbally, they want it in writing.  The absolute worse part of this whole thing was filling out the paperwork and getting copies of everything for the attorney.  Everything else was a piece of cake.

Hope that helps answer these questions

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[Anonymous]

Yes, you will have to produce those bank statements.  No way around it.  You are essentially trying to prove you are bankrupt and cannot pay your bills and the trustee is going to want proof.  The trustee is NOT your friend - s/he will comb through everything you provide looking for inconsistencies, assets, random deposits or money transfers or items that exceed the state/federal allowances, etc. - they are on the side of the creditors, trying to get any penny they can. 

[Scupra]

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@SSH0126 wrote:

How is preferential treatment if I am asking for the account to be closed and get my money put back into my savings account? Also if I am closing these accounts down ???????????????

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@Anonymous wrote:

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@SSH0126 wrote:

Okay just recvd confirmation.  I can close the card and the funds would go back to me.

---

Edited:  Just putting this out there in case you would use your refunded funds to payoff the balance.  I haven't seen anyone mention preferential treatment yet, it's important to have knowledge of it.

Be careful here with preferential treatment, you might be walking a fine line and I wouldn't want to see you have any issues with the trustee over it.

Any payment to a creditor over $600 in the past 90 days could be viewed as preferential treatment (someone correct me if I have the $ amount wrong).  So if you close the account, the funds are returned and you pay them, you need to wait a few months to file BK.  Even if they used the funds to apply to the balance, the trustee will see this and could still consider it preferential treatment.  I would check with your BK attorney before doing anything.

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I don't think NFCU is going to put the funds back into your savings are they? I would assume they would pay the card off with the deposit and put the remaining into savings. I would ask a lawyer is this is preferential though.. I could see it as preferential if YOU were giving the money to them, but I am not a lawyer so please check.

I would not close the checking/savings account, just move your direct deposit elsewhere and leave $5 with NFCU to maintain the relationship.

[SSH0126]

I called them again and this is what they said the would use the funds to pay the balance in full. so the funds would not be put back into my savings acct.