Can you help me?

[catch22]

We are probably gonna be filing for chapter 13, Can somebody help me. I have last used some of my credit cards until the last day of Dec. This january, ihave stopped paying the cards with high interest like chase and BOFA, but i continued on paying the cards that i used in Dec, (macys $4,300 over all balance, nordstrom@3,800,Amex3,500)Is this considered preferrential payment? or... should i just stop paying now for all the unsecured cc? I din't charge any luxury item, just for everyday living (food,gas, groceries) We are probably filing in March or April. Haven't found any lawyer yet here in Eastern District of Ca, (Sac.) Please anybody?

[catleg]

Preferential payment just means that the trustee can take back money that you paid to some unsecured creditors in the time shortly before filing for bankruptcy, and redistribute that money to the other unsecured creditors who weren't so lucky.

From your perspective as a debtor, it's literally, like reshuffling deck chairs on the titanic.

[AngelinaCatHub]

Since you are going 13, and there will be a partial payback anyway, I would say your are OK to pay the little bit you can. When it becomes preferential is when you pay a large amount to family or friends or one favored creditor over another. If you could afford to pay them all, you wouldn't need bk. If these payments are little ones with several cards and you did use them for ESSENTIALS then I see no problem with a Trustee. Simple explanation is, you attempted to pay in good faith until the realization that you could pay no more carried you to bk. Anything over $600 bucks will be questioned. 'Hub

[lrprn]

I have last used some of my credit cards until the last day of Dec.

If you used your credit cards for purchases that will be considered reasonable (clothes, food, other living expenses) and the amounts were reasonable for the area of the country you live in, you'll probably be ok. If you are using an attorney to file your 13 (and I hope you are), run this by the 3-4 experienced lawyers during your free initial consultations just to be certain. And don't use the cc's any more!

This january, ihave stopped paying the cards with high interest like chase and BOFA, but i continued on paying the cards that i used in Dec, (macys $4,300 over all balance, nordstrom@3,800,Amex3,500)Is this considered preferrential payment?

Making payments on some credit cards but not others *might* be considered preferential payments by your trustee. However, even if your trustee does decide to go after the payments you made, it's purely between your trustee and each cc company. It doesn't affect you at all.

or... should i just stop paying now for all the unsecured cc?

If you are certain you are filing in just a few months, there's no reason to continue to pay any unsecured debt. Stop and instead use that money to retain your lawyer once you find the right one. If you intend to surrender any secured assets or property when you file, don't stop paying on those until you discuss your situation with your lawyer (once you find him/her).

Posting of individual lawyer recommendations isn't allowed here in the open forums. If one of our forum members has an attorney recommendation for you for in the Eastern District of California (Sacramento area), they will send you a private message (PM).

Hang in there. Keep reading the forum posts and stickies, and ask any questions you might have. We'll help you sort things out as best we can. You aren't alone!

[catch22]

thank you

Thank you all so much for answering my questions. At least i'm a little relieved. Yes, we stop using our cc on jan. Thank you and i'm sure i'll be asking more questions.