Should I make one more payment before filing?

[PaKettle]

Of my 15-20 or so accounts, I took balance transfers (each under $1000) on 2 cards at the end of May (used the low interest rate balance transfer offers the bank sent me) to pay another card that had a higher interest rate).

I made only one minimum payment on these 2 cards, a few days after taking the balance transfers, in the beginning of June.

It was the next month when payments became due that I realized I was not going to be able to make all my payments and should file, so I made no further payments (no payments since those last ones at the beginning of June).

So, the question is, would it help my case to make one more payment now on these 2 accounts? It would only be the July payments of $45 and $55 respectively on each of these cards, not the hundreds of dollar payments I now owe, with raised interest, late fees and overlimit fees. (I did not put them over the limit, they did with their fees.)

So if I were to make the 2 July payments, now, in August, would it look better than if I don't make them?

(I plan to file in September if I can get the money together by then.)

[JRScott]

I wouldn't make them if you need that money to pay the lawyer. However it is a question that might better be answered by a lawyer. Have you retained one?

[CATCHMEIFYOUCAN]

I wish I never made the payments I did just before I filed, total waste of money! I would save that as an emergency fund in a shoe box somewhere!

Best Wishes, Catchmeifyoucan

[PaKettle]

I wouldn't make them if you need that money to pay the lawyer. However it is a question that might better be answered by a lawyer. Have you retained one?

I have found an attorney and will be retaining him as soon as I come up with the money, probably in a month or so to pay him a down payment that will allow me to refer creditors to him.

Am asking here because I really don't want to bug him with questions, especially before I've retained him. I figured someone here may have had a similar situation and asked their attorney.

I'm leaning towards paying these 2 cards, it would only be $100 or so for both July payments and I think it would look better than having made just ONE payment after the transfers.

And I may not be filing for another month or 6-8 weeks depending on getting the $2k together... So $100 isn't that much of $2k, and I think it would look better.

Unless someone can give me a compelling reason not to, I can't help but think it would look better. For one thing, we owe this credit company a lot of money on other cards (like $17k) so anything I can do to make things look a little better with them might help... I assume they'll be looking for ammunition against me. No?

[JRScott]

If it helps give you peace of mind I suppose there is no harm in it.

I hope you get the retainer up

[Cassiopeia]

I have found an attorney and will be retaining him as soon as I come up with the money, probably in a month or so to pay him a down payment that will allow me to refer creditors to him.

Am asking here because I really don't want to bug him with questions, especially before I've retained him. I figured someone here may have had a similar situation and asked their attorney.

I'm leaning towards paying these 2 cards, it would only be $100 or so for both July payments and I think it would look better than having made just ONE payment after the transfers.

And I may not be filing for another month or 6-8 weeks depending on getting the $2k together... So $100 isn't that much of $2k, and I think it would look better.

Unless someone can give me a compelling reason not to, I can't help but think it would look better. For one thing, we owe this credit company a lot of money on other cards (like $17k) so anything I can do to make things look a little better with them might help... I assume they'll be looking for ammunition against me. No?

I'm confused. What do you think will "look better?" Are you filing Chapter 7?

[Lindsay]

We had two cards that we used in the last 90 days (our other 7 or 8 cards haven't been used in a year or more) and I considered making a few payments on the used cards. I decided not to because I was afraid it would look like we "preferred" those creditors. However, the payments are pretty small on those two cards of yours so I don't think it would matter too much to pay if it makes you feel better.

[familyof7]

I think it would look like you at least triied to pa it. I think the prefrential tratment tjhing is for balances over 600.00 but i may be wrong but I swear I read it on one of the papers but I cant rember which one

[Cassiopeia]

I'm still trying to wrap my head around the words "look better." Can someone explain this? To me, if you are planning on filing bankruptcy (Ch. 7), all the debts you list (everything you owe) WILL be discharged completely, barring of course any strange glitches. So how will paying anything on a particular card or two make one "look better"? Which I take to mean, make the BK more likely to go smoothly.

Maybe I'm not explaining my question right.....

???????

Of course too you have to remember that I was in the situation of having virtually ALL of my cc accounts in collections at the time I filed. MANY I had not paid in months. Some over a year. I had a no asset case, no way to pay the bills, no problem. I fully expect a discharge soon.

So how would paying any of those bills make my filing (or me) "look better" to the trustee?

[familyof7]

because in this persons case the cash advance was so large and so recent you dont want the creditor to object or claim fraud of any kind and hold up the case.

[Cassiopeia]

because in this persons case the cash advance was so large and so recent you dont want the creditor to object or claim fraud of any kind and hold up the case.

I'm so embarrassed. I missed that part.

Thank you!

Sorry, all. It just wasn't clicking for me.

[HHM]

FYI on the whole creditor objection thing...if a "creditor" files an objection, doing so does not otherwise hold-up your case. You will still receive your discharge when you are supposed, etc etc. That balance transfers were both under $1,000, so all this person has to do is wait-out the 70 day time from for the presumption of fraud issue. The amounts are too small for the creditors to file an objection outside of the presumption period, so you wait the 70 days before filing your BK. But, at the same time, the payment amounts, $45 and $55, are so small too, it can't hurt.

I honestly don't think you need to make the payments if you can't make them, but if you don't want to "nudge" the boat at all, go ahead and make the payments. In BK, you don't get brownie points for trying.

[familyof7]

But any cash advance above 600.00 in less than 90 days can raise a red flag. And no it wont delay discharge but it can increase the chance of having to pay that particular debt back. And the objection can delay the the closing. And it can also cause a headache while going through the objection process which no one wants ,you want it as smooth as possiable. The best solution to this problem is waiting 90 days from the last transaction.

[PaKettle]

But any cash advance above 600.00 in less than 90 days can raise a red flag. And no it wont delay discharge but it can increase the chance of having to pay that particular debt back. And the objection can delay the the closing. And it can also cause a headache while going through the objection process which no one wants ,you want it as smooth as possiable. The best solution to this problem is waiting 90 days from the last transaction.

Thanks. I can't decide what to do, everyone has a different opinion. I just don't want it to look like fraud and give the creditor any ammunition against me. However, right now I can't afford to make even these small paymments, anyway! So I'll think about for a couple weeks and then decide.

[CindyLou]

ONLY time "heals" in BK. Making token payments will do nothing. The reason that time makes a difference is that after 90 days the burden of proof shifts from you to the creditor. The is major because after that they have to prove that you DID commit fraud instead of durind the 90 day you would have had to prove that you didn't. If you wait the 90 then you are innocent until proven guilty. Making a payment doens't make a lick of difference in either of these scenarios except that you are out of a payment. Now that's just my opinion. Take it for what its worth, but I've never met a BK attorney or seen a post from here from a member saying they have gotten advice from an attorney to make "one last payment" once they have decided to file bK. AS HHM says...don't throw good money after bad. Keep that money and put it to something good!!!!! NO NO NO ...don't pay that bill just to make yourself feel better. Not a good reason! Hope this helps.

P.S. This looks like exactly what it is......a person about to file BK! Period. don't Sweat it~ Believe me, they've seen it all and you aint it, my dear. You'll be fine! Hang in there!!