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Thinking of filing

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New Member Hmd
New Member

Thinking of filing

Hi. I am thinking of filing chapter 7. I contacted a couple attorneys. I recently opened a personal loan to use to pay another loan. She said i should pay in it for at least three months and don’t worry about paying the others?? I was reading through here and that sounds like preferential treatment? Please advise! Thanks!!
Message 1 of 5
4 REPLIES 4
Super Contributor

Re: Thinking of filing

It actually sounds like the attorney is trying to get away from you being considered for preferential payments. The fact that you just took a loan out to pay another loan, just to turn around and file BK, looks like preference to the creditor you paid off. I am NOT A LAWYER but I would listen, then not pay anything for another 90 and file just to be safe. Good luck
Filed BK7: 7/2012 (start score EQ 560 / TU 529) Discharge 10/2012
740 EQ FICO 06/2018
750 TU FICO 06/2018
741 EX FICO 06/2018
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Message 2 of 5
Frequent Contributor

Re: Thinking of filing


@Hmd wrote:
Hi. I am thinking of filing chapter 7. . . I recently opened a personal loan to use to pay another loan. (The attny) said i should pay in it for at least three months. . .?? I was reading through here and that sounds like preferential treatment? Please advise! Thanks!!

This is not an issue of "preference".  This is an issue of potential fraud.  You borrow money knowing you are in trouble and then elect to file bk.  In the eyes of the creditor you fraudulently induced the lender to lend you money.  Depending upon the creditor, the amount involved and the timing of borrowing vs. filing bk, you could face a Complaint under 11 USC 523(a)(2).  Your attny is attempting to reduce that possibility by telling you to pay and wait.  Follow the attny's advice.

 

Des.

Message 3 of 5
Community Leader
Super Contributor

Re: Thinking of filing


@despritfreya wrote:

@Hmd wrote:
Hi. I am thinking of filing chapter 7. . . I recently opened a personal loan to use to pay another loan. (The attny) said i should pay in it for at least three months. . .?? I was reading through here and that sounds like preferential treatment? Please advise! Thanks!!

This is not an issue of "preference".  This is an issue of potential fraud.  You borrow money knowing you are in trouble and then elect to file bk.  In the eyes of the creditor you fraudulently induced the lender to lend you money.  Depending upon the creditor, the amount involved and the timing of borrowing vs. filing bk, you could face a Complaint under 11 USC 523(a)(2).  Your attny is attempting to reduce that possibility by telling you to pay and wait.  Follow the attny's advice.

 

Des.


agree with @despritfreya 


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 4 of 5
Established Member

Re: Thinking of filing

I agree with the other posters. Let your attorney guide you clear of any possibility of fraud and getting your case kicked out. 

C7 Filed: 5/17/19
341: 7/1/19
Message 5 of 5
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