top Ad Widget

Collapse

Announcement

Collapse
No announcement yet.

Lawyer said "ok" to stop paying my credit cards?

Collapse
X
Collapse
 
  • Page of 1
  • Filter
  • Time
  • Show
Clear All
new posts
Previous template Next
    #1

    Lawyer said "ok" to stop paying my credit cards?

    Hello,

    I met with a lawyer last week and he said it would be ok to stop paying my credit cards since we have retained him and are going to go forward with a chapter 13. He gave me a number for the creditors to call if they harass me.

    My question is this, is that bad advice? We are struggling to make ends meet now, but won't the added interest and penalties increase what I owe? I have always paid on time, and it will feel odd but relieving to stop. How soon will the companies fork over the debt to a collection agency if I stop paying in April? I have read it could take as long as 5-6 months to complete the BK process, and in my case it may. I don't think we are going to actually file until late June because my 6 month income is skewed from a bonus I received in December. So this will only extend the timetables.


    Any help would be greatly appreciated. Great site.
    Tags: None
    #2
    The amount you repay in a chap 13 is going to be determined by your income, not how much you owe. So go ahead and stop paying, start stocking up on necessities like unperishable food, toiletries, and clothing items you need. When you get the bk started you may be broke for a lil while so it will be good to have extra household items on hand.

    Comment

      #3
      Another thing, my wife will be out on maternity leave around the time we file. So only one income. I will need a little extra cash for that time to make ends meet. We have some money set aside for her leave, not much, but enough to buy diapers and gas/food to get by. The lawyer said he might be able to have the trustee payments waived until she goes back to work too, (up in the air).

      Would they look at that and allow me to keep some extra cash for neccessary spending while she is out of work?

      Comment

        #4
        Better hope the trustee is a good person. Technically, the 13 payments will be based on your expenses as of that day, then you would have to go back and request changes in the future. I would say, if you don't already know whether its a boy/girl, then find out her next checkup and start buying diapers, food, baby clothes etc.

        Comment

          #5
          Yep. Go ahead and stock up on diapers and such getting ready for the baby. The Plan payments will be set up according to your income and expenses the day you file. You'll have to go back to ammend the plan when your wife goes back to work and the kid(s) are in day care anyway.

          Also, expect that you'll begin making plan payments almost immediately. Like withing 30 days of filing with your attny. Most people go ahead and pay the amount the attny figures the plan will be before the Trustee ever approves the plan. Just an FYI for you that you aren't gonna have 4-5 months thruout the duration of the BK process where you won't be making payments.

          Plus too, the minute you file, an automatic stay goes into place. Your Creditors can no longer contact you about the debts. The debts are frozen at the point the BK was filed and no late fees or overages charges will apply at that point. I think that's correct.
          Filed Ch 7 - 09/06
          Discharged - 12/2006
          Officially Declared No Asset - 03/2007
          Closed - 04/2007

          I am not an attorney. My comments are based on personal experience and research. Always consult an attorney in your area to address concerns related to your particular situation.

          Another good thing about being poor is that when you are seventy your children will not have declared you legally insane in order to gain control of your estate. - Woody Allen...

          Comment

            #6
            Originally posted by SinkingFast
            Yep. Go ahead and stock up on diapers and such getting ready for the baby. The Plan payments will be set up according to your income and expenses the day you file. You'll have to go back to ammend the plan when your wife goes back to work and the kid(s) are in day care anyway.

            Also, expect that you'll begin making plan payments almost immediately. Like withing 30 days of filing with your attny. Most people go ahead and pay the amount the attny figures the plan will be before the Trustee ever approves the plan. Just an FYI for you that you aren't gonna have 4-5 months thruout the duration of the BK process where you won't be making payments.
            The confusion of timing here is my biggest issue. If they look at the last six months of income, and my wife is out of work for three months with very little sick leave/vacation pay at the time we file, our monthly income will be cut in half. But our income based on the last six months will show we could afford a plan payment and allowable living expenses. But with my salary alone, we would barely have enough money to make the house payments, groceries, gas, and a plan payment.

            That is why the lawyer was saying they might ask for a 3 month waive of plan payments until she goes back to work. Also, he did not mention anything about amending the plan, he asked what our daycare expenses will be after delivery. He also calculated our estimated plan payments based on expenses after delivery.

            Comment

              #7
              Why are you filing a Chapter 13 as opposed to a 7?

              Comment

                #8
                Originally posted by keepmine
                Why are you filing a Chapter 13 as opposed to a 7?
                Make over the median income for the State.

                Comment

                Previous template Next

                bottom Ad Widget

                Collapse
                Working...
                X