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WALLSTREETESQ
WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15657
Experience:  14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
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Hello, I am currently a college student with about a year

Customer Question

Hello,

I am currently a college student with about a year left. I have a $10,000 balance I know that I cannot file bankruptcy for and I do plan to pay off. But I currently owe about $5,500 and one of my credit cards and I want to know if I can run up my other two credit cards, a combined $10,000 limit, and then file for bankruptcy. I know bankruptcy is looked down on very harshly but I do not plan to buy a home before 5 years and I want to know how long it takes to build up credit again. Also, I plan to precious metals with the credit so that I can sell it at a later time to help me pay off for school and I want to know if the credit card companies can force me to sell it-the charge does show as providentmetals when I order. Please help.

Regards,

Rajib Ghosh
Submitted: 1 year ago.
Category: Bankruptcy Law
Expert:  WALLSTREETESQ replied 1 year ago.

WALLSTREETESQ :

Hello I am a licensed attorney here to help you with your question, please review my response and do not hesitate to ask for clarificati on

WALLSTREETESQ :

if you are planning on filing bankruptcy and run up your credit cards, that is fruad,

WALLSTREETESQ :

fraud,

WALLSTREETESQ :

Under the law, the bankruptcy court trustee will look back at your last 6 month-12 month purchases, and any large or unusual purchases if done near the date of filing can be considered fraud,

WALLSTREETESQ :

if you plan on using your credit cards you may want to wait 12 months to two years before you file a bankruptcy to avoid any fraud issues

Customer:

thank you, XXXXX XXXXX run up around $8,000 and wait one year do I have a good chance of avoiding fraud? any other factors I should consider?

WALLSTREETESQ :

it would be possible, unless you bought items over $1000 such as a new TV or other large items,

Customer:

So you suggest if I plan to do it to spread the purchaes and keep them under $1000?

Customer:

Also how much does bankruptcy cost because I have to hire a lawyer to do it right?

WALLSTREETESQ :

yes, that is better,

WALLSTREETESQ :

you do not need an attorney but a lawyer will cost $800-$1500

WALLSTREETESQ :

the court fees are $300

Customer:

will the items I purchase prevent me from filing bankruptcy like buying $8000 of precious metals; buying them in purchases under $1000 as you suggest.

WALLSTREETESQ :

yes,

WALLSTREETESQ :

those are assets and would be taken by the court when you file bankruptcy,

Customer:

is their an investigation to find out I still have them? Do they expect me to report it?

Customer:

because one can say it was sold and the cash was used for other things and this is hard to trace no?

WALLSTREETESQ :

you have to report them, and the trustee will investigate,

WALLSTREETESQ :

they can ask for your last 12 months purchases

Customer:

thank you for your time, just one last question. how can the trustee actually investigate I still i have those assets? they are assuming I still do aren't they?

Customer:

A good bankruptcy lawyer can persuade the court I sold them?

Customer:

this is a lot of problem I probably wouldn't take a chance with but I needed to ask

WALLSTREETESQ :

the trustee is part of the DOJ, the FBI will investigate, and review the uses of the card, and what you bought and when you sold them and to whom,

WALLSTREETESQ :

any fraud or perjury would result in federal criminal charges

WALLSTREETESQ :

Bankruptcy is serious, and you must disclose all property you had and property you had the last 12 months, if not longer

Customer:

wow ok

WALLSTREETESQ :

Good luck, and if satisfied please provide us with positive feedback,

WALLSTREETESQ, Attorney
Category: Bankruptcy Law
Satisfied Customers: 15657
Experience: 14 years exp., CH 7 AND 13 Bankruptcy cases, AFL-CIO UNION PLUS, UFT NYSID AND ALL MAJOR UNIONS
WALLSTREETESQ and other Bankruptcy Law Specialists are ready to help you
Customer: replied 11 months ago.

I have two more questions based on what you said please


 


One. Can I sell the precious metals and tell them the cash was used to pay personal loans? Because I actually do owe my parents money they loaned me for college?


 


Two. I am going into the health field to become a medical technologist. Do you think it is likely that my future employer will look at my credit history?

Customer: replied 11 months ago.

I have three more questions based on what you said please


 


One. Can I sell the precious metals and tell them the cash was used to pay personal loans? Because I actually do owe my parents money they loaned me for college?


 


Two. I am going into the health field to become a medical technologist. Do you think it is likely that my future employer will look at my credit history?


 


Three. I plan to run up my credit balance in precious metals over the next 5 months, with normal purchases in between, and then wait at least one year from there to file bankruptcy. But can I force my creditors to file it for me? I mean what happens if in 2 years I just start not paying my credit cards? Again I have no home, or other assets and I will not have any cash deposisted into the bank from any precious metals I sell.

Expert:  WALLSTREETESQ replied 11 months ago.
1. if you sell the assets, to pay personal loans, the trustee could consider these preferential transfers and have the money be given back, and the trustee would divide the payments to pay all your creditors.

2. A credit check would not happen in this field.

3. If you fail to pay your creditors, the worst that can happen is they sue you and obtain a judgment, and try to garnish your wages, or freeze your bank account, they will not force a bankruptcy.
Customer: replied 11 months ago.

Thank you.


 


Let me be forward. Is there ANY way, I mean, how would you sell the $9000 of precious metals in a way to not have the trustee ask for the money to be given back?


Lost in gambling perhaps?

Expert:  WALLSTREETESQ replied 11 months ago.
Under the law, you can use this to purchase exempt assets prior to a bankruptcy, so you could use it in an IRA which is exempt under a bankruptcy, or other exempt assets.

http://www.nolo.com/legal-encyclopedia/new-york-bankruptcy-exemptions.html

You can look at the link above for what property is exempt under NY bankruptcy law, it is not against the law if you convert non exempt assets into exempt assets prior to a bankruptcy.
Customer: replied 11 months ago.

Thank you.


 


Retirement Account Exemptions


Retirement accounts that are exempt from taxation, which usually include most genuine non-fraudulent retirement accounts, are fully exempt. However there is a cap of $1,245,475 on IRAs and Roth IRAs. (To learn more, see Your Retirement Plan in Bankruptcy.)


 


So I know in theory I can sell the precious metals and then put them into a Roth IRA and it should be exempt but I would like to know how to defend myself against the trustee that this wasn't planned.


 


I guess I can say after I sold it I opened a Roth IRA to start a retirement fund and believed I can still pay off my debts but I cannot keep up with the payments any longer.


 


 

Expert:  WALLSTREETESQ replied 11 months ago.
You can state you were involved in a business venture and wanted to protect what assets you had left, and put them into a retirement account for the future.
Customer: replied 11 months ago.

Is it so investigative that they would ask me about the details of that business venture?

Expert:  WALLSTREETESQ replied 11 months ago.
it may be it depends on when this was done, if you file soon afterwards it will be an issue, if filed after one or two years it should not be a major issue, but questions will be asked.

It is best to state you used the credit cards for a business venture.
Customer: replied 11 months ago.

That makes sense but I can't really say that if they see that I do not have any business purchases. And I can't say I bought gold/silver expecting it to rise and then sell for my business venture? Or can I?


 


I don't think they can say it's fraud based on how I expected to use the money right? Only if I bought the gold/silver in huge quantity and filed bankruptcy shortly after would it be suspicious; but by bringing up the business venture it makes the story more plausible right?


 


So my question is, if they ask why I bought so much gold/silver, if I can respond that it was in the hopes that it would go up to fund my business venture?


 


And if I sell $5000 of gold/silver and hold onto the rest ( i know this is fraud but they can't search my home right?) and they ask why there is less in the retirement account I can reply ,as you stated, that I wanted to protect whatever was left from my business venture by putting it into a retirement account?


 


I don't have a retirement account so I believe this is plausible. Especially if I say the business venture didn't go as planned?


 


Sorry for the long question

Expert:  WALLSTREETESQ replied 11 months ago.
yes you could state it was a risk to do this but you expected gold to increase in value.
Customer: replied 11 months ago.

Should I hire an attorney to file chapter 7 when the time comes or is it simple paperwork?

Expert:  WALLSTREETESQ replied 11 months ago.
you should hire a bankruptcy attorney, it is not simple, and should be taken seriously, since you may have some issues with assets.
Customer: replied 11 months ago.

Question.


 


if i want to hide the precious metals charges better by waiting two years instead of one before i file for bankruptcy, but i am a student now and plan to start my career next year,can the creditors force the courts to garnish my wages?

Expert:  WALLSTREETESQ replied 11 months ago.
you can wait two years, however if sued creditors can obtain a judgment and garnish wages.
Customer: replied 9 months ago.

I am going to wait 2-2.5 years before I file for bankruptcy from the time I purchased gold/silver. Is this something that the credit card company might bring up to the court trustee from the DOJ is or it is solely the job of the trustee to investigate about prior purchases.


 


In other words, am I truly safe by waiting 2+ years. If not, I can always sell the assets a year before filing and put it into an IRA since you said it was an exempt asset but I rather not.


 


Thank you.

Expert:  WALLSTREETESQ replied 9 months ago.
Waiting 2-2.5 years should not be an issue, unless you are purchasing them with credit cards knowing you will default on them.

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