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Roger
Roger, Attorney
Category: Bankruptcy Law
Satisfied Customers: 31015
Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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I may have to claim chapter 7 or 13 due to my husbands loss

Resolved Question:

I may have to claim chapter 7 or 13 due to my husbands loss of income recently and weill be so in the near future. Will I get into trouble for purchases made recently.
Submitted: 7 years ago.
Category: Bankruptcy Law
Expert:  Roger replied 7 years ago.

So long as the debts incurred immediately before filing are not for luxury goods or cash from a credit card or other source of credit, it should not be an issue. Also, the creditor would have to file an allegation that you did something improper by maxing out all of your credit cards intentionally right before filing.

 

If you're living on credit just to meet your essential needs, you're not going to be in trouble.

 

 

Customer: replied 7 years ago.
What is the defenition of right before filing mean.
Expert:  Roger replied 7 years ago.
Generally, within 6 months of the filing date.
Customer: replied 7 years ago.
Does luxury include needed improvement on house and clothing for my 3 children
Expert:  Roger replied 7 years ago.

Unnecessary home improvements - possibly. Clothes for the children - not likely unless they're extremely expensive.

 

The catch is that the creditor has to file a motion with the court and allege that you abused your credit knowing that you were going to file. This is not done often - especially if there are no assets or property to liquidate and pay out to creditors.

Customer: replied 7 years ago.

If I continue to try and make minimum payments on the cards doesn't that show the creditor that I am not an abuser. Don't most people charge up like crazy than just stop paying then file.

I am trying to hold out on filing until I see if the overtime comes back. Can they try and take your property even if ther is 0 equity in the house.

Expert:  Roger replied 7 years ago.

If you continue to make minimum payments, it will help. Also, it will make it tougher for the creditor to convince the judge that you were planning to file bankruptcy when you were making the charges.

 

Other than a lienholder with the first lien on property, your property can't be taken without being sued and teh creditor taking a judgment against you. Once that occurs, you could face attachments and garnishments.


However, your house is generally safe because of homestead exemptions and the fact that you have a mortgage on the house. If this is the case, you should not be in jeopardy with your house unless you fall behind on the mortgage.

Customer: replied 7 years ago.
How long do you usually have before a creditor makes a judgemnt agaist you.
Expert:  Roger replied 7 years ago.
It takes at least 30 days from the day you're served. But it usually takes closer to 60-90 days.
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