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Few questions regarding bank account and payments (pre-filing)

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    Few questions regarding bank account and payments (pre-filing)

    My husband and I are in the process of getting all our paperwork together for a chapter 13. We also still need to file our 2006 taxes. The lawyer said that once this is all done, then the meeting where we sign all the paperwork to file would be about a week later.

    First question: I have a payday loan out that I've been getting and paying on faithfully for quite some time (paying off the loan and getting it again). My next payment is due tomorrow. I'm worried that if I don't pay it, they will cash the check, since we technically haven't filed yet. Obviously I can't afford this or I wouldn't be in this cycle in the first place. Is there anything I can do? A couple options I've thought of were to make a payment and write a check with a check from an old account, since that couldn't cash it (but what if they question the different check?). Another thing is a stop payment on the current check that they have, but I don't have the check number, so I don't think I could do that. Also, wouldn't that be illegal? I've also considered closing the account, but our credit is so bad that nobody will allow us to open a new account anyway.

    Second Question: We have payments coming out of our checking account for a credit card (the 30th of each month). As of now, the payments are only about $10/month, so it's not going to kill us if they are taken out another time or two. However, in Sept, the payments go up to $85. Can we call them and tell them to stop? What happens if they keep taking out payments once we file?

    Thanks for any help you can provide!!

    ETA: We are in Missouri

    #2
    Realistically when do you think you can file? If it's within a month or two, then just don't pay the pay day loan. It's unsecured and they will have to file a claim to be paid anything back in your 13. Why stress about it?

    All the payday loan place can do is make phone calls to you asking for payment. Tell them you don't have the money now and hang up, even if they are talking. Keep repeating this until you file. Or if you have an answering machine, let it pick up the calls then delete the messages.

    Keep paying on everything you do want to keep after filing, but as far as the unsecureds, don't bother. Use that money instead to plan for the 5 years ahead and get your cars repaired, have doctor and dental appointments, etc. Check with your lawyer first to find out what's acceptable to spend the money on before filing. No need to go through all the financial acrobatics. Just don't pay the pay day loan. End of story.
    I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

    06/01/06 - Filed Ch 13
    06/28/06 - 341 Meeting
    07/18/06 - Confirmation Hearing - not confirmed, 3 objections
    10/05/06 - Hearing to resolve 2 trustee objections
    01/24/07 - Judge dismisses mortgage company objection
    09/27/07 - Confirmed at last!
    06/10/11 - Trustee confirms all payments made
    08/10/11 - DISCHARGED !

    10/02/11 - CASE CLOSED
    Countdown: 60 months paid, 0 months to go

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      #3
      I hope that we can file in the next couple weeks. The reason I'm worried about the Payday loan is because they have a check. If I don't pay it back, they will cash the check, which I can't afford. That's why I normally pay it back and then take it out again. If they didn't have a check, then I wouldn't worry about it.

      Your post brings up another question though. We plan on keeping the car after filing, but my lawyer said not to make anymore payments on it. He said that we'd list in in the filing, but we'll only have to pay what it is worth, not what we owe. Should this be different?

      Comment


        #4
        Only my opinion, as I am not a C13 expert (or an expert at all). DO NOT stop payment on a check they are holding. This could be a felonious act. It is in FL if you post it as a collateral. Go there, and address them with the fact that you will pay late. Their immense amount of interest, you just must "eat". Kill that one off for sure.

        After this note, I bow to LRPRN as she is wise in this subject except the check thing. The check thing could be submitted to the States Attorney as fraud. Just notify them, and get rid of that bad choice. Only my opinion. 'Hub
        "To go bravely forward is to invite a miracle."

        "Worry is the darkroom where negatives are formed."

        Comment

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