How to stop paying

[Lana]

I plan to file ch 7 early in about Feb or March (need to distance myself from a loan I took in July). I cant pay everyone now. Despite the fact I am seriously struggling mentally with the thought of not paying as I have great credit and have never had a late ever, I have to do it cause - well I cant pay anymore.
I'd like to keep my house at the end of the day ( I owe about what it is worth, but with the costs of selling, I cant get out, and I would like to stay) I have a 1st for $1600 PITI, and a heloc at $300/month, decent rates, 240k balance. I would like to modify a little and I would like to do so before I file and then reaffirm. They wont talk to me cause I am not late.
Additionally I have about 900 in minimums on cc's (500 of which is for a cc I have in my business name), and a personal loan at $440/month (the one I want to distance myself from). Also a school loan at $75 and car note for 290.
I want to keep the car so i intend to keep paying on that. I was thinking of stopping paying on the house now until they agree to modify. Id like to stop paying the 500 on the one cc, but keep paying on the others as they have some larger charges earlier this year and I did some balance transfers in March. I have to keep paying on the personal for awhile - it is 3 ms old for 20k. I assume Ill have to keep the school loan so I may as well pay. In Jan or Feb stop paying all cc's and personal. Then file in Feb or March. Does this sound like a sound plan? Between a few k that is owed to me, and my tax refund I can make it until then. I put all my ccs away and have stopped using them.

[inpain66]

I am in a similar spot. I took out an almost 7k loan in july when I had a second job.

I lost the job in August and the money was gone by then.

I still have my main job but do not make enough to pay my bills.

I am stressed like you and really really depressed at times. My total debt is 25-27 k unsecured, 16k car, 42 k student loans. I am doomed

I need to wait to file but cannot pay my bills and have no idea how I will ever come up with the money to pay my lawyer.

I stopped paying all my credit cards in Sept and creditors are already bothering me.

I still pay on my car and personal loans I took out and that leaves me no money for food really.

It is hard to see a light at the end of the tunnel and sometimes I wish I was dead =(

[Lana]

Its just money - don't let it stress you that much. Its only your credit that will take a hit. Not too long ago I was up nights or even worse having dreams about paying the bills. I would wake up in the middle of the night in panic - "did I pay the mortgage?...did visa get their money?" I guess it took me awhile but I'm at peace lately knowing I have another option. My credit will be shot from BK...and thats ok - look where credit got me..lol. But the rest of my life is till the same. Filing bankruptcy is a sound financial decision for someone in my position. I'll take that over constantly stressing about how I will pay this or that, or which Peter can I rob to pay Paul this month. Dont let it get to you. Of course, I havent talked to collectors yet. I'm sure that wont be pleasant.

[TEW]

I am in a similar spot. I took out an almost 7k loan in july when I had a second job.

I lost the job in August and the money was gone by then.

I still have my main job but do not make enough to pay my bills.

I am stressed like you and really really depressed at times. My total debt is 25-27 k unsecured, 16k car, 42 k student loans. I am doomed

I need to wait to file but cannot pay my bills and have no idea how I will ever come up with the money to pay my lawyer.

I stopped paying all my credit cards in Sept and creditors are already bothering me.

I still pay on my car and personal loans I took out and that leaves me no money for food really.

It is hard to see a light at the end of the tunnel and sometimes I wish I was dead =(

Thats feeling very bad!!!!! not to long ago i was right where you are. I am in the 60 day club The time went by faster then you think.
You will get the money together and things will work out.
money is not everything
The light is in the tunnel not at the end if you just keep moveing forwerd you will see it.
no need to pay any of except the student loan.
I know before you know it we will be saying congrats to you cuz you got filed
the for the 341 meeeting
then your discharge.
keep post here you aren't alone

[inpain66]

I hope I can file. No idea how I will get the lawyer money though.

Christmas is coming too. How depressing. How am I going to explain not being able to buy anyone anything?

[WharffRat]

I hope I can file. No idea how I will get the lawyer money though.

Christmas is coming too. How depressing. How am I going to explain not being able to buy anyone anything?

My family understood last year. I was in the middle of my Ch 7 BK. We made a very small budget for Christmas and made most of the presents for people. If the people you love know what you are going through, they will understand.

[StartingOver08]

Lana, I am not sure from your post, but be very careful about your home payments. If you are planning on keeping your home do not stop making the payments, you need to be current in order to file CH 7.

There are some modification programs you can do while you are current, especially the HUD program, but you have to be current.

I stopped making payments on mine, then tried to catch up and the lenders only accept 'all or nothing'. There was no way I could come up with 3 mths of payments at once. I tried to pay one month when I was about 45 to 50 days behind and according to the servicing co that was completely unacceptable - had to come up with 2 mths.

If you want to keep your home, think long and hard about not making the payment just to get into position to negotiate with the loan servicers because they tell you they will work with you when you are behind, but then when you are behind they do NOT work with you.

[AngelinaCatHub]

I hope I can file. No idea how I will get the lawyer money though.

Christmas is coming too. How depressing. How am I going to explain not being able to buy anyone anything?

[hnhlvr]

Keep paying your mortgage and heloc, plus your student loans, and STOP paying your credit cards NOW. Use that money to keep paying your house and car pmts.

If you want to keep your house, you don't want to mess around with risking any default. With my house, after three months of non payment, we got notice that if we didn't pay the full amount, the house would be auctioned on 12/5. Our HELOC was sent to collections that same month!

And don't fuss over Christmas. Everyone is struggling this year. Why not propose everyone do a name pull from a hat and each only gives/gets one gift. Then get TINY gifts for kids. My son got a $3.50 pokemon toy at his b-day and he was MORE thrilled with that than with a $15.00 toy car he got!

Oh, and also, the only debt I'm paying is my car loan! I won't risk being w/out a vehicle.

I quit all credit cards and DH and I stopped our house pmts. We found a nice, secure, safe place to rent before our credit went down hill.