Question about the 90/$600 to a creditor rule.

[sophia]

We were current on all our CC payments last month.

This month we have stopped & we are officially behind 2 CC payments due the first week of Feb. (5 more to go by end of the month).
Feels weird, we have been robbing Peter to pay Paul for so long, we actually have never even been late on a CC bill.

We have one CC bill that is about $650 a month.

Since we just stopped paying all of them during the same month, will the fact that we paid over $600 to this bill affect us, or is that just if you pay one and not all the rest that they do not like?

TIA

[Tromploi]

We had several with min's over 1K, one was almost $1500, we paid them all until we stopped. Think it's just when you pay one and not the others, preferential payments. Doesn't matter the amount, especially if it's the minimums.

[AngelinaCat]

You are supposed to treat all of your creditors the same. You don't play favorites with them. If you don't make a payment to one, you're not supposed to make payments to any of them.

And if you are going to attempt to discharge this CC, why are you paying anything to it? You are throwing money you could be saving for your attorney--or your Emergency Fund--away.

Keep in mind, that after you are officially discharged, you are free to go and pay back any creditor you wish. Though CCs will typically write you off their books before your discharge.

Good luck!

[2Bshinyandnew]

We were current on all our CC payments last month.

This month we have stopped & we are officially behind 2 CC payments due the first week of Feb. (5 more to go by end of the month).
Feels weird, we have been robbing Peter to pay Paul for so long, we actually have never even been late on a CC bill.

We have one CC bill that is about $650 a month.

Since we just stopped paying all of them during the same month, will the fact that we paid over $600 to this bill affect us, or is that just if you pay one and not all the rest that they do not like?

TIA

The fact that you pay any creditor more than $600 doesn't really affect you, the debtor at all, even if you have 10 creditors and paid only 1 $600 and paid the other none one month before filing.

The trustee has powers to recover from creditors payments made shortly before the bankruptcy was filed in cases where the payment gave the creditor more than other creditors would get through the bankruptcy process.

I suspect that monthly minimum payments are not an issue, but if they are they are a problem for the creditor, not the debtor.

[TEW]

The fact that you pay any creditor more than $600 doesn't really affect you, the debtor at all, even if you have 10 creditors and paid only 1 $600 and paid the other none one month before filing.

The trustee has powers to recover from creditors payments made shortly before the bankruptcy was filed in cases where the payment gave the creditor more than other creditors would get through the bankruptcy process.

I suspect that monthly minimum payments are not an issue, but if they are they are a problem for the creditor, not the debtor.

If you pay unsecured debt of more then $600 in 90 days it is preferential payment and the trustee will take the money back. stop paying all your CC's if you are filing stop wasting your money

[sophia]

We had several with min's over 1K, one was almost $1500, we paid them all until we stopped. Think it's just when you pay one and not the others, preferential payments. Doesn't matter the amount, especially if it's the minimums.

Thanx, this is exactly what we have done.