Cash advance before stopping payments

Debt settlement only reduces your chances of getting sued but does not eliminate it. Whether you take cash advance or make purchases on your credit cards, the creditor can sue you anytime within the SOL period of the debt is you become delinquent. Can you tell us the date when you made the last payment towards the credit cards and the state you live in?

I stopped paying on one in March and the other in April. I live in Fla and I had heard that if you took a cash advance and did not make payments, they could get you for fraud. Then I read on another site that it has to be over 5000 dollars to be considered fraud. I welcome any advice or info.

The creditors may not agree to debt settlement right now because it has hardly been a couple of months you have not made any payment towards your debts. The creditors normally agree to debt settlement if you are delinquent for at least 180 days.

It really depends on how big the advances were and what they were used for. If you were using them for necessities, like food and rent, they are no big deal.

You can get settlements from creditors as soon as 30 days depending on the creditor...many will settle before the 180 day charge off. And you can most definately get into debt settlement programs with barely being late.

Hi Soaplady
Quote:

It would only be brought up in bankruptcy court.....other than that it really is irrelevant.

So if I did not file bk then I should be fine to continue my diy settlement in 4-6 months.

One creditor told me since I took a cash advance I could not file bk. It did not sound right to me. Anyone ever hear of that.

Any unsecured debts like credit card debts and personal loans, can be included under bankruptcy. Now since cash advance forms a part of your credit card debts, it can be included under bankruptcy. Creditor will always influence you not to file bankruptcy because your debts may be discharged and you may no longer be required to pay them back.

Thanks Carol, I just past 90 days on a couple of cards and have not heard anything about settlement. I don't have any money to settle with right now, so I have to buy some more time. I probably will go past 180 days on some cards because I won't have enough to settle with all of them. Sometimes your situation makes your decision easy.

Be prepared, these creditors may sue you (although they may send it to a collection agency with the recommendation to sue if they should so feel like it) because a bunch of cash advances just before stopping paying looks rather suspicious and will likely red flag you. It's possible you can sneak past the radar, I'm just saying to be mentally prepared for it.

Not to mention, each month late fees and over the limit charges will also be added on to your accounts, and the total balance will mushroom out of control very fast.

That's quite a tidy sum for a cash advance. How much is your debt and how many creditors do you have?

You may be forced to file for bankruptcy anyway.

With respect to cash advances and Bk...I vaguely remember something about if a person takes a cash advance x number of days/months before filing for BK, it will be heavily scrutinized...I don't know what the outcome or effect will be...anybody know???

I have almost 200k in credit card debt and if they were to sue me I still would not be able to pay. I want to settle all of my cards at the 20 to 40% rate that I read about on here, it will just take some time. Any suggestions?

I agree Desperatelyseekingsanity. One way or another, taking impressively large cash advances and then stopping payments may cause issues one way or another. That was probably not a wise decision.

Guest59, see: How to settle your debts yourself and simplify your life. With that high of a debt, you have a good chance of being sued, and more than once. You may wish to consider filing for bankruptcy.

You can either try to settle your debts yourself by visiting the link as mentioned by Chrys or register with a good debt settlement company if you cannot do it yourself. However, you should take note of the fact that debt settlement only reduces your chances of getting sued by does not eliminate it.

I looked into a settlement company and the monthly payments were too much for me to handle. DIY settlement became my only choice outside of BK. My history with cash advances were always large amounts, 5 to 10K and were always spent on bills and other credit cards. I used them to survive and I never realized the total amount until I stopped and added them all up, it was an eye opener. The money I took out at the end was the lowest transfers that I did, there was more to take. I just wanted to make house payment etc. so I only borrowed what I needed.

I am having the same situation. I have been taking large cash advances to meet my obligations and now I have around 120K in credit cards debt... I am afraid to be accused in fraud when I file for bankruptcy