Buying Time w/ Credit Card Collectors

[BKINAZ]

Long story short I am trying to delay filing chapter 7 until the second half of this year because it will help us with the means test. We stopped paying and using our credit cards in December. It seems like I have like 6 months before things get serious with credit card companies (lawsuit?). Is there a way to delay their timing? If I make some kind of payment (my payment is $800) of say like $100 once a monthfor a couple months...will this delay their process for a couple of months?

Thanks!

[TEW]

No a partial payment is like no payment. Don’t waste your money. On the outside chance they do sue you. That would be wiped out by the BK. Do you live in a garnishment state?

[Trixie007]

I made partial payments on our 10 cc's from May/Aug (depending on card) thru Dec of last year, then stopped in Jan. Here's what I've figured out 1) it can delay charge-off for just a bit - if you send $25/mo and your minimum payment is $100 - after 4 mos you will essentially have made a minimum payment. 2) If you are worried about any charges you made on the cc, this can also show "intent" on your part to repay.

IMHO, #1 doesn't really matter much, unless you are maybe waiting a whole year to file - #2 was good for us as we had a lot of BT's from Dec-07 to Apr 08 moving the debt around for lower interest rates and keeping a bit from the checks for living expenses.

[catleg]

Making a token payment doesn't buy you anything.

I discovered quite by accident that making an online payment through their (credit card's) website that bounces (NSF) from your bank account still resets their delinquency clock, so although a little sleazy and unethical I guess you'd be better off putting the little bits of money towards paying the NSF fees to the bank rather than giving them to the credit cards. I haven't paid anything in about 4 months and --knock wood-- nothing bad has happened yet. Having said that I'll probably get served today.

You definitely do not want to talk to them, it is a useless exercise in frustration and no good will come of it. (well, they could put you on a hardship program but if you're planning chapter 7 anyway, then any money you send them is like putting it in a shredder).

[optimistic1]

Long story short I am trying to delay filing chapter 7 until the second half of this year because it will help us with the means test. We stopped paying and using our credit cards in December. It seems like I have like 6 months before things get serious with credit card companies (lawsuit?). Is there a way to delay their timing? If I make some kind of payment (my payment is $800) of say like $100 once a monthfor a couple months...will this delay their process for a couple of months?

Thanks!

If you are filing the second half of this year, I wouldnt even worry about it, they wont sue you until it is charged off, which will take 180 days = 6 months. Then at that point, by the time they could even win a judgement and start garnishment, another 3-4 months would roll by. Time is on your side, dont bother paying them anything, its a big waste of money. Go and take the wife out to eat and enjoy life.

[BKINAZ]

I don't recall if I am a garnishment state (self employed...wife is employed elsewhere) because I figured we'd file sooner than later. I have to look...probably. But I am also trying to do a loan mod and need the extra time.

What is their time schedule...6 months of trying and hand it off for someone else to try or to sue? Lawsuit...after a year? Anyone?

NSF maybe a last resort option for me...

[optimistic1]

You are in a garnishment state, your wife's income can be garnished at 25% of net income, as can your bank accounts. From what I have read, there is no easy answer, it could be anywhere from 6 to 18 months. I have noticed, that people that ignore the collection phone calls and havent retained an attorney and notified the creditor of their plan on filing, are sued automatically upon charge off with certain creditors. My personal opinion is, that if they know you are serious about filing, and you have already retained an attorney, then why should they even bother wasting time and money on trying to sue you.

[BKINAZ]

My personal opinion is, that if they know you are serious about filing, and you have already retained an attorney, then why should they even bother wasting time and money on trying to sue you.

Sounds good. Anyone else who has been there done that agree?

[willbfree]

optimistic1 our bk attorney provided a list of tasks to complete BEFORE we retained her. She also doesn't want us telling creditors we plan to file. I don't understand why not but she specifically said no. Right now we are probably three, four weeks from filing. Just finishing up the 2008 taxes this weekend and will do an efile. When the refund comes back and is spent appropriately we will be ready to file. That's the answer that every creditor is asking right now. Do we plan to file bk? It would be wonderful to tell them "yes" but right now I have been told not to. Any reason why you can think of the attorney would tell us not to tell creditors about the impending bk?

[BKINAZ]

WILL "Do we plan to file bk? It would be wonderful to tell them "yes" but right now I have been told not to. Any reason why you can think of the attorney would tell us not to tell creditors about the impending bk?"

Okay I really need to know the answer to that question. I just told someone we were looking into BK.

[chrisdfw]

optimistic1 our bk attorney provided a list of tasks to complete BEFORE we retained her. She also doesn't want us telling creditors we plan to file. I don't understand why not but she specifically said no. Right now we are probably three, four weeks from filing. Just finishing up the 2008 taxes this weekend and will do an efile. When the refund comes back and is spent appropriately we will be ready to file. That's the answer that every creditor is asking right now. Do we plan to file bk? It would be wonderful to tell them "yes" but right now I have been told not to. Any reason why you can think of the attorney would tell us not to tell creditors about the impending bk?

If you are trying to delay filing your attorney doesn't want you to tell them because possibly they may try and sue you and garnish whatever they can before you file.

You can delay the suit also by filing a response and requesting a jury trial on teh complaint if they get around to suing you before the fall. Highly unlikely they would do so however.

I wouldn't sweat it, and would not send them any money if you know you are filing. And don't borrow any more money of course.

[willbfree]

chrisdfw thanks for the info. My situation may be influenced because I needed to liquidate some business inventory for quick cash. Some of the collectors attempting to find out about the bk have business inventory charges outstanding on those accounts. I was provided with guidelines on liquidating the merchandise and keeping meticulous records of what sold, to whom, and for how much. Currently the revenue is ours to spend but once we file it will not be. At this point I have pretty much liquidated what we wanted to liquidate. I have one more group to go out after March 1st with the buyer waiting for it and then what's left they are welcome to transfer to the Trustee at filing. So I have a feeling you are correct about the lawsuit but it may relate more to the business inventory issue not so much about garnishing wages. Plus I had to do the liquidation in stages over several months so it didn't throw the means test off. It's been a delicate balancing act. Will certainly be glad to hand this over to the attorney and be done.