Out of Work

[mintz]

I am recently out of work and may have to file for a chapter 7 in the near future if things don't get better. I am curious, I have a few credit cards that have "0" interest and no payments till 2010. So, technically we have made little to no payments on some.

If we file, do we include them in the bk? How does that work? The cards are Sears. Home Depot, Circuit City, Furniture. Some charges were just purchased for home improvements.

Appreciate some answers if anyone knows

[Tbornetun]

How long ago were the purchases? Have you ever made a payment on any of them?

[Flamingo]

All you did was defer payment of these debts due to a special offer by the creditor (i.e., buy now and make no payments until xx/xx/xxxx). However, when that date hits and you don't pay the bill in full, you will get hit for the all interest from the day you signed for the offer to that point and will accumulate more interest along the way if you just make regular payments. In plain words, you still have a debt that would be dated before your filing but have an offer not to make payments until a certain point. It's still a debt due and owing. If you file you have to include all your debts at the time of filing. Read your paperwork thoroughly as to the furniture and Sears. They may have a secured interest clause in that paperwork which could result in problems for you.

[mintz]

we have made minimum payments on the cards. I think one we have not made any.

So, if we file Chapter 7, those cards will go into the chapter 7 bk except the unsecured ones? And we will not have to pay for thee merchandise or return them? The charges were things like, new doors, a stove, yard equipment.

Some charges were made in Oct, November and our stove just went out and we charged that as well

[Flamingo]

we have made minimum payments on the cards. I think one we have not made any.

So, if we file Chapter 7, those cards will go into the chapter 7 bk except the unsecured ones? And we will not have to pay for thee merchandise or return them? The charges were things like, new doors, a stove, yard equipment.

Some charges were made in Oct, November and our stove just went out and we charged that as well

They are debts and will have to be included; however, Sears and furniture stores are well known for putting a clause in the credit paperwork that they could have a secured interest in the item. Do a search in this forum or someone else reading this may chime in. Depending on when you file, any of these charges could be an issue.

[mintz]

Should I contact a creditor like the furniture store and ask them to give me a lower amount to finance? We purchased furniture about 2 years ago at 0% but we are paying about $300 a month and have a balance of $6000. Will they adjust the balance if they know you are in trouble?