Made the decision to file, now what?

[HelpMeFast!]

I've posted before but I don't think I've ever given my complete scenario. Here it is:

Married, wife does not work, two children. Make around $50K a year. Have around $60K in credit card debt, buying a home (been there 4 years, but no equity). I am also a licensed REALTOR but I just started and have yet to make one cent. I've paid out plenty for classes and fees. Two vehicles, one paid for (nearly worthless) and one we owe $19K on (again, no equity). I've been surviving on credit cards for the last year while my wife has looked for work. I haven't taken cash advances by going to the bank and withdrawing cash, but our credit card is set up as overdraft protection and has been getting roughly $1K transferred to our checking to cover mortgage, bills, etc.. This is the same as a cash advance and I couldn't even start to add them all up. I'm also current on all of my cards (thanks to the cash advances). Now that I've made the decision to file, how long can I go without paying my credit cards? I'm stopping the overdraft protection on the credit card and have just stopped using them. A couple are in my wife's name and a couple are in mine. There is a total of four cards. I want to put as much time between now and filing as I can because of the advances. I don't have ANY of the money, it was all just used to cover bills. It was never even withdrawn. Just transferred to cover mortgage and cc minimums. How much time do I need and how crazy will the calls get? Can I try calling the cards and explaining that I need lower minimums or more time. Thanks. This forum is a life saver.

[SinkingFast]

You'll need to wait at least 70 days for the burden of proof to shift from you to the Creditor on the "Cash Advances". At least 90 days on any actual CC purchases.

Many of us quit using our CC's and work with our budgets to live within our means. Once we quit paying our CC minimums, we actually had enough money to live from one month to the next. In your case, you said you have no regular income right now.

You also said you're using about $1K/mo Cash Advance from a CC to meet expenses. Does that mean you have some sort of savings you've been stretching by using the $1K/mo off the CC??

[niteflytes]

I went at least 6 months without paying on any of my CC's before I filed. I know from reading posts on this forum for many months that you want to stop using your CC's altogether and put as much time between the last time use used them and when you file as absolutely possible. I'm sure you'll get more detailed advice from the more knowledgeable members on the forum. Good luck!

[HelpMeFast!]

Let me clear this up...

Thanks for the replies and sorry I wasn't more clear. My wife does not work, but I work and make roughly $50K a year. I'm in Texas. I have no savings but I do have a 401(k) (aprrox. $10K). I'm mainly looking for what to expect when I quit paying my minimums on cc's.

I wanted to know how long before they start calling.

How often do they call?

Do they call relatives?

How long can you go without paying before you start to get into trouble (collections)?

Should I get a lawyer right now or wait it out and then speak to one?

Thanks again for all of the help!

[keepmine]

Once you're 30 days late, you'll be in collections and they call daily.
Since you've decided to file, I'd start speaking with bk lawyers sooner rather than later.
Whatever you do, DON"T touch the 401K to pay unsecured debt. It will be an exempt asset in bk proceedings.

[SinkingFast]

How long it takes really varies by the Creditor and how much you owe. Your debts are relatively small to big Creditors like Chase, Citi, BoA. Smaller Creditors, like the local Joe's Furniture Store, your debt could be a chunk of their monthly profit.

The bigger Creditors typically have a process they follow. You'll get "reminder" notes on your monthly statements that you have not paid the first few months. Could be anywhere from 2-4 months before the big CC's start calling you. If you don't catch up and become current, then your acct gets turned over to internal collections. Then the calls will really pick up.

Somewhere along about the 6 months delinquent mark, you can start looking for Creditors to turn your accts over to an external Collections Agency. Some people here have gotten a year and longer with no threats of law suit. Others have been sued in as little as 4-5 months. There's really no hard and fast rule.

We went 10 months on 9 accts and only 3 had been turned over to Collections Agencies. I've also learned since we started working on cleaning up our Credit Reports that our Creditors were pulling our Credit on a regular basis. They were looking to see if we were paying anyone else, among other things.

Creditors don't just decide to up and sue people. They check you out first. Are you worth coming after. If you don't own a home, cars aren't worth much, don't have gainful employment, there's nothing worth going after. If on the other hand they can get a lien on a house or a wage garnishment, then you'd be a decent candidate for a law suit.

You should have time to schedule Consults with attnys, get an attny picked, do your pre-BK Counseling, and pay your attny's and filing fees. Gather your paperwork and get that turned in and you're all set to go on a moment's notice if need be.

If you're talking about a mortgage, that's a whole different beast. Foreclosure rules vary State to State. You might live in a Quick Foreclosure State where proceedings would start immediately after you've missed the 2nd payment. Or it could go much slower. Depends on the State.

[niteflytes]

Some of my CC's called daily. One called every day, every hour during the time frame they're allowed to call. What's really annoying is when you answer one of these calls and get a recording asking to call them back. Each CC was different in how often they called, how soon they started calling and how persistent they were about it. In my case though, I knew I was going to file when I stopped paying and by the time they started calling I'd retained my lawyer and could refer creditors to call them so I didn't have to put up with it for long.

None of them ever called any of my relatives but that doesn't mean it couldn't happen.

I wasn't bothered so much by the CC companies calling. My ex landlord was the worst and pursued legal action as soon as was legally possible. My BK was filed just in time to avoid wage garnishment.

niteflytes

[CindyLou]

If you are in TX you are safe. They cannot garnish wages in texas. I was in texas for 2 years without paying my cc's and NOTHING!! Only calls and letters. TX is probably the most bk friendly state there is!!!!