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Cash Advances and Chapter 7?

On Lawyer & Legal » bankruptcy & consumer credit

6,750 words with 4 Comments; publish: Mon, 24 May 2004 13:11:00 GMT; (800108.40, « »)

Hi All,

Just recently filed Chapter 7 about a week ago. I took a cash

advance out against an MBNA account last year at the begining of

December. I was just curious as to how much this will work against me

in my case. It was back in December of 03, which is just over 5

months ago. Does anyone have any thoughts???

Thanks to all who reply!!

RB's

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  • 4 Comments
    • "Rory Bellows" <jjd0405.bankruptcy.questionfor.info.aol.com> wrote in message

      news:4jl4b0h4guu6dkgavftcsttbd9vh0qn6om.bankruptcy.questionfor.info.4ax.com... Hi All, Just recently filed Chapter 7 about a week ago. I took a cash advance out against an MBNA account last year at the begining of December. I was just curious as to how much this will work against me in my case. It was back in December of 03, which is just over 5 months ago. Does anyone have any thoughts???

      That depends on a lot of things. Here's a few, for example:

      How much was the CA?

      Have you been making payments since incurring the debt?

      Was that CA atypical?

      How long have you had the credit card account?

      Did you intend to repay when the debt was incurred?

      How did you intend to pay the debt?

      How were the CA proceeds spent?

      Did you disclose the debt and the date it was incurred on your bankruptcy

      papers?

      #1; Mon, 24 May 2004 13:23:00 GMT
    • "Rory Bellows" <jjd0405.bankruptcy.questionfor.info.aol.com> wrote in message

      news:g7o4b0tljg8j6u85d58dq7ni22atm65dnj.bankruptcy.questionfor.info.4ax.com..."Rory Bellows" <jjd0405.bankruptcy.questionfor.info.aol.com> wrote in messagenews:4jl4b0h4guu6dkgavftcsttbd9vh0qn6om.bankruptcy.questionfor.info.4ax .com... Hi All, Just recently filed Chapter 7 about a week ago. I took a cash advance out against an MBNA account last year at the begining of December. I was just curious as to how much this will work against me in my case. It was back in December of 03, which is just over 5 months ago. Does anyone have any thoughts???That depends on a lot of things. Here's a few, for example:How much was the CA? Approx $5,000

      The greater the CA the more likely the credit card issuing bank is to take a

      look at the account.

      Have you been making payments since incurring the debt? Yes, on time and ahead of time.

      The greater the difference between the debts incurred and the paymens made

      the more likely the credit card issuing bank is to take a look at the

      account.

      Was that CA atypical? No, first time I had taken a CA against that account. And this account had been previously paid off in full.

      The more unusual the transaction the more likely the bank is to take a

      closer look at a potential objection to discharging this debt. The more

      often you took debt and paid if off the less likely the bank is to object.

      How long have you had the credit card account? About 4 years

      The older the account the less likely the bank is to take a closer look at

      the case.

      Did you intend to repay when the debt was incurred? Of course

      "Intent" is the pivotal issue in the ojbection to the discharge. The more

      facts that that can be uncovered that seem to suggest an intent not to repay

      when the debt was incurred the more likely it is an objection will be filed.

      How did you intend to pay the debt? As part of the monthly installment payments

      If you had the income when you incurred the debt and subsequently became

      unable to repay, you probably won't have any problem with the creditor. A

      change in circumstances (like divorce, illness or unemployment) is good

      insulation to a claim that you didn't have the intent to repay when the debt

      was incurred. A bunch of payments on top of the debt do the same thing.

      How were the CA proceeds spent? Christmas

      Nessities are treated differently in bankruptcy than luxruy purchases. The

      more unnecessary debt incurred close to the filing the more likely an

      objection will be made.

      Did you disclose the debt and the date it was incurred on your bankruptcypapers? Yes

      Good. The best way to get in trouble in one of these cases is not to

      disclose everything.

      If this kind of creditor files a complaint to determine the dischargeability

      of this kind of debt without substantial justification the court may order

      the creditor to pay the costs of defending the complaint. Therefore,

      creditors don't often file without expecting they will prevail. If this

      creditor does file and convinces the court that you fraudulently incurred

      the debt the court will sign an order declaring that debt (probably along

      with the costs of the action) is nondischargeable. The time period for

      filing such complaints is within 60 days of the first meeting of creditors.

      After that the creditor loses the right.

      #2; Mon, 24 May 2004 16:39:00 GMT
    • >"Rory Bellows" <jjd0405.bankruptcy.questionfor.info.aol.com> wrote in messagenews:4jl4b0h4guu6dkgavftcsttbd9vh0qn6om.bankruptcy.questionfor.info.4ax .com... Hi All, Just recently filed Chapter 7 about a week ago. I took a cash advance out against an MBNA account last year at the begining of December. I was just curious as to how much this will work against me in my case. It was back in December of 03, which is just over 5 months ago. Does anyone have any thoughts???That depends on a lot of things. Here's a few, for example:How much was the CA?

      Approx $5,000Have you been making payments since incurring the debt?

      Yes, on time and ahead of time.Was that CA atypical?

      No, first time I had taken a CA against that account. And this

      account had been previously paid off in full.How long have you had the credit card account?

      About 4 yearsDid you intend to repay when the debt was incurred?

      Of courseHow did you intend to pay the debt?

      As part of the monthly installment paymentsHow were the CA proceeds spent?

      ChristmasDid you disclose the debt and the date it was incurred on your bankruptcypapers?

      Yes

      I hope this helps.. Thanks for the reply!!

      RB

      #3; Mon, 24 May 2004 13:56:00 GMT
    • Don't forget to mention, MBNA can be a NASTY bunch when they want to be,

      which is most of the time!

      "Thoth" <thoth.bankruptcy.questionfor.info.notlisted.net> wrote in message

      news:7Jvsc.6394$wH1.3107.bankruptcy.questionfor.info.fed1read02... "Rory Bellows" <jjd0405.bankruptcy.questionfor.info.aol.com> wrote in message news:g7o4b0tljg8j6u85d58dq7ni22atm65dnj.bankruptcy.questionfor.info.4ax.com..."Rory Bellows" <jjd0405.bankruptcy.questionfor.info.aol.com> wrote in messagenews:4jl4b0h4guu6dkgavftcsttbd9vh0qn6om.bankruptcy.questionfor.info.4ax .com...> Hi All,>> Just recently filed Chapter 7 about a week ago. I took a cash> advance out against an MBNA account last year at the begining of> December. I was just curious as to how much this will work against

      me> in my case. It was back in December of 03, which is just over 5> months ago. Does anyone have any thoughts???

      #4; Tue, 25 May 2004 04:37:00 GMT