QUESTION
How long do I have to wait to file Chapter 7 Bankruptcy after financing furniture?
Asked on Aug 23rd, 2012 on Bankruptcy - Rhode Island
13 ANSWERS
Bankruptcy Attorney serving Phoenix, AZ
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Law Office of D. L. Drain, P.A.
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I hope that you are planning on surrendering the furniture or paying the full amount of the debt. Please understand that filing for bankruptcy is a very complicated process. It is wise to talk to an experienced bankruptcy attorney before deciding to take this important step. Most Arizona bankruptcy attorneys offer a free consultation about the basics of bankruptcy.
Answered on Aug 28th, 2012 at 9:45 PM
Criminal Law Attorney serving Fremont, CA
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Steven J. Alpers, A Professional Corporation
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It would be good to wait at least 4 months if you can. You will have to pay for the furniture or give it back no matter when you file.
Answered on Aug 23rd, 2012 at 8:09 PM
Litigation Attorney serving San Antonio, TX
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Graves Law Firm
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Since you presumably want to reaffirm on the furniture debt anyway, you don't have to wait on account of it. See a bankruptcy lawyer.
Answered on Aug 23rd, 2012 at 8:09 PM
Daniel James Wilson
The furniture purchase is probably secured, that is the furniture is collateral for the debt. If you file a 7 the creditor will probably ask you to reaffirm the debt or return the furniture.
Answered on Aug 23rd, 2012 at 8:08 PM
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Generally speaking: If you would like to keep the furniture, and settle the amount owed, I suggest waiting 90 days. If you plan to pay back the furniture debt, you do not need to wait before you file. You can reaffirm that debt and pay it back according to the terms you have already agreed to. Most likely, the lender has a "purchase money security interest" in your furniture which means that the lender can repossess the furniture if you do not pay the loan even if you file bankruptcy. In the past I have successfully negotiated with lenders to settle their claim for the current value of the used merchandise and sometimes for less.
Answered on Aug 23rd, 2012 at 8:07 PM
Bankruptcy Attorney serving Washington, DC
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Law Offices of Diann C. Moseley
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Generally speaking, a debtor is considered to be bankrupt 90 days before the case is filed. Therefore, the 90-day look back period allows the trustee and creditors to review any transactions you made during the look back period to prevent fraud. It does not mean you cannot file bankruptcy until 90 days have passed since your last credit transaction. However, it does mean that a creditor that extended credit to you may seek to deny you a discharge as to its debt based on fraud, have the items you purchased returned or allow you to pay the fair market value of the merchandise, e,g., furniture, in your case.
Answered on Aug 23rd, 2012 at 8:07 PM
General Practice Attorney serving Crystal Lake, IL
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Bruning & Associates, P.C.
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If you plan to reaffirm the debt, you can likely file for bankruptcy after purchasing the furniture. You would probably have to sign an agreement saying you still plan to pay for the furniture (a reaffirmation agreement), otherwise the financing company can repossess the furniture to satisfy the debt. This analysis assumes your creditor has "perfected" the lien on the furniture and therefore has a right to it as collateral if you don't pay. You should always be careful when filing for bankruptcy after assuming new debt, however, as the creditor may contest your bankruptcy and say that you knew you were going to file but took on new debt anyways, thus intending to defraud the creditors.
Answered on Aug 23rd, 2012 at 8:07 PM
Probably at least 90 days.
Answered on Aug 23rd, 2012 at 10:32 AM
There is no minimum waiting time. The financed furniture will probably be a secured debt that will not be discharged by the bankruptcy. To be sure, you need to look at the financing paperwork.
Answered on Aug 23rd, 2012 at 10:32 AM
Bankruptcy Law Attorney serving Livingston, NJ
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Law Office of Stuart M. Nachbar, P.C.
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There is no minimum, but suggested that you wait 90 days and make minimum payments so there is no presumption of failure of intent to pay. Also, gives time for wear and tear, and perhaps you will reaffirm at a lower rate. Speak to a bankruptcy professional such as myself.
Answered on Aug 23rd, 2012 at 10:32 AM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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See a bankruptcy attorney. If you financed furniture planning bankruptcy at the time of the loan such would be considered a fraudulent transaction. You are welcome to call my office with details and for an appointment.
Answered on Aug 23rd, 2012 at 10:32 AM
Bankruptcy Attorney serving Grand Rapids, MI
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David Andersen & Associates, PC
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There isn't a specific time frame but you should wait a minimum of 90 days from when the financing occurred.
The creditor can still file an adversary complaint (lawsuit in the bankruptcy) if they believe they have grounds to show their was fraudulent intent. If you wait past the 90 days they are less likely of being successful.
You will want to make sure the furniture isn't secured by the financing. That would mean you may have to retain the furniture financing in order to retain the furniture.
Answered on Aug 23rd, 2012 at 9:50 AM
Barbara A. Fontaine
I am quite sure that the furniture company has a security interest in your furniture. That means that in a bankruptcy you either reaffirm the debt (keep paying) or they will repossess the furniture.
If it is fairly recently that you got the furniture, they may also file that you bought it in anticipation of bankruptcy.
Answered on Aug 23rd, 2012 at 9:49 AM