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creditcrunched

Guest
What is the name of your state? NY

My credit card balances are pretty high and I have been using them normaly (with a lot of biz buys) But my business is very seasonal and I planned to pay off a lot this season. Well, disaster hit and - long story short - I've got to file C7.

What's the story with cred card companies getting their whole balance not included if you charged more than $1000 over the previous 3 mo period?

Thanks for replies
 


Ladynred

Senior Member
Here's what the law says about amounts or debts not discharged:


consumer debts owed to a single creditor and aggregating more than $1,000 for ''luxury goods or services'' incurred by an individual debtor on or within 60 days before the order for relief under this title, or cash advances aggregating more than $1,000 that are extensions of consumer credit under an open end credit plan obtained by an individual debtor on or within 60 days before the order for relief under this title, are presumed to be nondischargeable; ''luxury goods or services'' do not include goods or services reasonably acquired for the support or maintenance of the debtor or a dependent of the debtor; an extension of consumer credit under an open end credit plan is to be defined for purposes of this subparagraph as it is defined in the Consumer Credit Protection Act;
 
C

creditcrunched

Guest
Thanks - a quick ?

Am I correct in understanding that the date for "the order for relief" is the day your discharge is granted (and not the day you file)?

Basically, I'm concerned that I'm discontinuing using my cc cards the same month I have to stop paying - due to a sudden and severe decline in my business. Is that going to look bad to the cc companies and will they try to fight a discharge of the debt. It appears - from the law you cited - that if I wait 60 days (to file?) I'm im safe waters. (I have about 30k owed spead over 3 cards)

Thanks again
 

Ladynred

Senior Member
Most creditors do NOT fight a discharge, unless they have reason to believe you're trying to defraud them... and from what you've said, this doesn't sound like deliberate fraud. At the worst, a few creditors are known to show up at 341 meetings.. like Sears, Best Buy, and Circuit City, but rarely anyone else from all I've read here and elsewhere.

The 'order for relief', I believe goes into effect the day you file, because on that day the automatic stay also begins. Any creditor can file for a 'relief from stay' to try to continue collections, but the most frequent cases of that appears to be from mortgage companies and car loans.

It would be better if you put a little time between your cessation of use of the cards and your filing dates. 60 days, the credit card companies will bitch a lot and harrass you for not paying them, but they won't do much else in that time.
 

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