Expert: Mark J. Markus- California Bankruptcy Attorney - 10/19/2007

Question
Hi Mark. I tried the credit consulting first, but family/friends suggested I speak to a lawyer.  I went through a divorce and have 4 children on a $3,500 month income. I live in California. I went to my 1st consult yesterday and decided that this was the only way for me. I made my initial payment yesterday. The lawyer's assistant asked me if I had made any large balance transfers within the last 60 days, which I hadn't. However, I did get a cash advance of $175 this week, will this affect the case since this amount was in process as I decided to retain an attorney? I feel that I should pay that card back, as soon as I can, but I'm being told not to since it will be part of the discharge list. I read several web sites that state anything over $500 prior to filing will not be discharged.  This particular card already had a $800 balance on it.  Could you tell me how this would affect me and what is the timeline prior to filing. Thank you.

Answer
there is a presumption that any consumer debts totalling over $500 incurred within 90 days prior to filing are nondischargeable.  However, a creditor can object to any debt if they can prove you did not have the requisite intent to repay it at the time the charges were made.