Going for c7- questions regarding lawyers and cc

[realitybites]

Hello everyone, this have to be the best forum I have come across related to BK. I am new here and found so much helpful information.
We have recently well more like few months ago that have decided on chapter7. Our situation is not any more exciting than many others. We have 30k in debt including two cars and a house, oh and a student loan. We had our second baby eight months ago; not having this baby was not an option and believe me we don't regret it for a second. Six months ago I had a significant amount of pay reduction, which made things so much more tough. We are paycheck to paycheck now. I have been carrying my cc balance for years now and nowhere close to getting it done. I have recently been falling behind on my cc payments too. Also with few other reasons, going for c7 was a hard and necessary decision. Now I could use some info or suggestion regarding lawyers..
I recently in past two months contacted two lawyers, lawyer A was one on one. He sat with me and looked over my situation and decided that we wait to file until May due to median issue.
I then setup an appt with another lawyer B. When I went to meet with him, I was told he is unavailable and asked me that I should meet with the assistant/paralegal. Which I did and went over my situation and also suggested that we wait until June.
I never got to meet with lawyer B. The paralegal told me that the lawyer is very busy and her and another lady manages the initial paper works. I told her about situation with my CC and falling behind on payments. She suggested that I do a retainer agreement with them and tell the CC companies that I am going for C7 and tell them to contact my lawyer. Also, suggested that I can stop paying my CC. The fee for lawyer A is about 300$ less than lawyer B.
The questions I have is, is it a bad idea to stop paying my CC at this point like lawyer B suggested? Lawyer A suggested that I keep paying the min. balance on the other hand.

how do you go about picking a good lawyer, can you get a reference? There are few other lawyers too in town. I am not sure if I should make a decision based on how much they charges.
Also, I already paid a consultation fee with Lawyer A, which he said will go towards the final payment if I hire him.

I have a cc with my regular bank too, should I look into getting another checking or savings account at this time? Sorry for all the questions, but I do need to ask.

Thanks.

[keepmine]

Unless you usd those cards in the last 90 days, stop paying all debt you wish to discharge immediately.
If you are going to default on a card with a bank you use for checking/savings, open an account elsewhere ASAP.

[LuciluS]

First, Stop using your Credit Cards, if you haven't already.

When we met with our Attorney in late Setp. 08, I had a balance transfer on one credit card in Aug. 08. He told us to stop paying on all credit cards, even one I had purchases of less than $100 EXCEPT for the credit card with the Balance Transfer of $3,950.

He told us to make 3 months worth of payments and to add at least $25 to the minimum payment. I added $50 for 3 months and then I stopped paying on that specific credit card.

No need to throw away money on cards you haven't used in 90 days, unless large purchases were made. If you purchased basic necessities and have the receipts, I wouldn't pay on those credit cards.

You are going to wait until May to file, so any credit card purchase that is over 90 days old, Don't pay them.

Luci

[realitybites]

Thank you for your replies. I haven't used my CC in months on end and there were no balance transfers in last year. I have already started to get some calls, cause I am behind on two CC. Should I speak to them and say I am doing C7?

I was planning on opening account with at a neighborhood branch of a local bank. We do have some money in our current savings account from tax refund. Which all of it will go towards lawyer fees. Should I withdraw the money and keep it as cash or deposit it in my new bank account?
Also should I have my employer do direct deposit to my new account or have them send me paper check? I have read somewhere in the forum where paper check was suggested.

What happens when you default on a CC with your bank that has your checking and savings?


Thanks.

[AfraidOfBK]

He told us to stop paying on all credit cards, even one I had purchases of less than $100 EXCEPT for the credit card with the Balance Transfer of $3,950.

He told us to make 3 months worth of payments and to add at least $25 to the minimum payment. I added $50 for 3 months and then I stopped paying on that specific credit card.

Luci

Is this not considered preference to one creditor? I am scared of that because I am going to stop paying CC's this month (except for BofA where my bank accounts are until I switch all funds over to new acct)

If I pay min pt on my BofA card but miss pmts on other two cards, will this look bad?

Also, If I have a cc with Chase (8100 balance) and a mortgage with Chase (I am two months late and surrendering home in BK) Will that speed up my foreclosure process?????

[AfraidOfBK]

What happens when you default on a CC with your bank that has your checking and savings?


Thanks.

I think they can freeze your accounts, or at the very lest stop your online access to funds, etc...I think its pretty much free reign for them once you miss a pmt...they can treat your accounts however they like cuz theyll demand pmt.

I am in the process of switching all of my money over to a new bank...I am keeping allr eceipts of transfers/transactions so that I can trace for the trustee where the money went...then if you have to, spend it out of that account so they know where your money went, and that you were not trying to hide it.

This has been advice given to me, I have not filed yet

[keepmine]

Is this not considered preference to one creditor? I am scared of that because I am going to stop paying CC's this month (except for BofA where my bank accounts are until I switch all funds over to new acct)

If I pay min pt on my BofA card but miss pmts on other two cards, will this look bad?

Also, If I have a cc with Chase (8100 balance) and a mortgage with Chase (I am two months late and surrendering home in BK) Will that speed up my foreclosure process?????

If it's a preference, it's not your problem. The trustee will go after BOA for any funds.

[realitybites]

what do you do when you stop paying them? is it a good idea to ignore their phone calls or tell them what is about to happen?

[chad9162]

keepmine.....So our saying we should keep paying on credit cards we have used within 90 days of "filing" or 90 days between last payment. Are you saying we Should have 3 months and payments and no use?

I haven't used my credit cards since Feb. I used one last month for a $200 DVD...I paid the minimum then used the card. This is bad right?

[StartingOver08]

Do not charge on your credit cards within 90 days of filing date.

keepmine.....So our saying we should keep paying on credit cards we have used within 90 days of "filing" or 90 days between last payment. Are you saying we Should have 3 months and payments and no use?

I haven't used my credit cards since Feb. I used one last month for a $200 DVD...I paid the minimum then used the card. This is bad right?

You can not use the cards when you are insolvent. The presumption is that you know that you are insolvent at least 90 days before filing BK. You can not charge on your cards 90 days before filing without risking the 'presumption of abuse' charge by the Trustee. The Trustee can either dismiss your BK case (the worst of all worlds); or make the charges not dischargeable or convert you to a Ch 13.

Since you know you are going to file, best to plan it appropriately and STOP CHARGING.

[chad9162]

Startingover08...Thanks I understand that but do I still need to make payments?