Continue to pay cc's and unsecured's or not?

[southernbelle]

Would it seem fraudulent if I made regular payments to a credit card used to make a recent purchase for my central A/C ($3500) and made slow or small payments to everyone else like other credit cards and unsecured's? Does this seem like I would be making preferential payments to this one creditor? I have yet to make my first payment to the new cc and would like to make at least a couple of payments before filing, but I need the money I am currently paying to cc's and unsecured's to be able to afford the lawyer.

Also, what are the odds of a creditor reaffirming the new cc (which has a really good interest rate) if I can't afford to reaffirm another loan with the same company? Do creditors often agree to reaffirm then change the terms of the contract, like raise the interest rate or close the account after it's paid off?

Thanks in advance.

[nc73]

Don't pay anyone. Wait 90 days before filing.

[jp2861]

You might put yourself in a catch 22 situation. If you show that you have the cash flow to reaffirm a credit card payment you may be saying that you should be in a Ch 13 instead of a Ch 7. I'm not sure why anyone would want to reaffirm an unsecured debt. You might be better off contacting them after you're discharged and see if they'll give you same rate if you make good on the debt. I think trying to reaffirm an unsecured debt would be opening a can of worms.

[southernbelle]

Do most people just stop paying everything unsecured 90 days prior to filing? How would that look with the new cc I haven't paid anything on yet? Since my credit is so so right now, how would not paying for 90 days hurt my credit and will that give the bank better grounds to object?

Sorry to have so many questions, but if my credit was really bad to begin with, I don't think I would mind at all, but I was trying (if possible) to keep it from dropping too much by paying just enough to stay under the radar so that rebounding later won't be as difficult.

[B12]

Belle, I was trying to do the same thing. I, too, had never even had a late payment in 30 years. This forum convinced me differently!

I kept paying all cc's just to make 3 payments on a balance transfer that I had made. I made my 3rd payment and now I am not paying any cc's at all. I will be filing in about 2-3 months.

Can you afford to wait to file and make 3 payments on it? I have seen posters here only make one or two payments with good results, but being self employed as you and I are, I made the 3 payments. They tend to look at us more closely.

Forget the rebounding after the BK. IMO it doesn't make much of a difference. If it matters at all, the lender will see the BK is an isolated incident over the course of years of good credit.

[nc73]

Yup once you file you're screwed anyways. Don't pay them a cent.

[lrprn]

I have yet to make my first payment to the new cc and would like to make at least a couple of payments before filing, but I need the money I am currently paying to cc's and unsecured's to be able to afford the lawyer.

Ask your lawyer what is the best thing for you to do in this situation. If you can hold off filing for more than 90 days since the charge was made, then it won't surprise me if he/she tells you to not pay the new cc.

Also, what are the odds of a creditor reaffirming the new cc (which has a really good interest rate) if I can't afford to reaffirm another loan with the same company?

Your chances are very low because your lawyer and the court are not likely to allow you to reaffirm a non-secured debt, especially a credit card. However, after your bankruptcy is discharged and closed, you can pay back whoever you want - it's up to you (although I would think long and hard about why I'm considering repaying a debt that would otherwise be wiped out).

[southernbelle]

Thanks for the advice. I will call the lawyer I had the free consult with this question to find out what he says. With all of the other complications of my case, I will try to make the 3 months to the new cc just so that I don't get placed under a microscope. Thanks again.

[nc73]

Hate to tell you but they could still put you under a microscope even if it is over 90 days.

[jp2861]

Hate to tell you but they could still put you under a microscope even if it is over 90 days.

True, and they most likely will. To incur a debt of that much, and then file right at the 90 day point may raise an eyebrow or two. Old debt versus new debt, I think, is looked at differently. The more distance you can put between new debt and your filing date will tip the scales in your favor. Someone jump in and correct my thoughts, but it seems like if you file at 90 days it may appear that the debtor knew the debt wasn't going to be paid off, but closer to 6 months shows that the debtor just couldn't pay. The more I research, the more I keep coming up with holding off for 6 months for new debt, if the debtor can hold off for that long. Of course, a good lawyer will know what his districts trends are and be able to answer more precisely.

[tradewiz50]

Don't pay anyone. Wait 90 days before filing.

What he said.