Should I do this?

[trueblues]

I can't file until October, lost my job and waiting for income to fall off. I'm 30 days behind on most cc's, only current on the two I used in March.

I have a big balance on one card and with late fees and 30% interest, it's rising fast and put me over the credit limit. They offered me a payment plan for $137 per month for 12 months at zero interest and they'd erase all late and overlimit fees. He said at the end of that year they would work with me again.

I already feel terrible about not being able to pay and this makes it worse because they've been really nice and it sounds like a great plan. But I know I'll have to file anyway and I know they're only being nice to get me into a plan. Still, I'm torn.

I could scrape up 2 or 3 payments if don't pay anyone else. (I was going to stop anyway.) That would get me closer to my filing date but not so close that it's preferential payments. I know it's throwing money away, but I'm thinking it might be better to look like I'm trying, and maybe there would be less chance of objection by the creditor. Should I do it?

Thanks for your thoughts on this.

[dingdong]

Worst case scenario, they sue you and you get the judgement wiped out in BK.

You could probably delay a lawsuit for a few months until you file in October, plus it takes awhile to get calendered anyway..

You are just throwing that money away if you pay them, cause it isn't like you are going to be able to keep that card, you won't have any available credit anyway and your credit is going in the crapper by you not paying the other cards.


Save your money if you know you are going to file.

You will need it to live on. Food is important, and so is paying your attorney to file.

If you stop using your cards within 90 days of filing anyway, a creditor won't be successful in objecting. You should be fine.

[Clover329]

My suggestion is to retain a lawyer now. Talk to a few & find one that works for you. Then start talking about your options, who to pay, who not to pay, who to talk to, what to say, etc.

Since you are planning on waiting (why wait is my question) but want to stop making payments now, you will only increase your grief & aggravation. The cc companies will say anything to you to get you to make a payment. Personally, after going through this process, I don't trust them at all. They will call you night and day, all day, every day to try and squeeze a buck out of you. Watch the documentary "Maxed Out". It definitely will open your eyes to the ways of the credit world.

Good luck, it's a long process.

[trueblues]

Ok, thank you both. I'll bite the bullet and resist making any payments. I hope nobody sues. I have to wait to file because my husband got an unexpected bonus in March and we were already slightly over the median. I'm trying to do whatever I possibly can to file 7 instead of 13.

My unemployment benefits are delayed because they're so far behind (13% unemployment here), and my ex boss is a witch and contesting my claim. She won't win, she has no reason to do this but it's holding me up.

That brings me to another question. My UE benefits are exempt as income under CA law, but I still have to show what I've done with the money, right? I used to spend all my earnings to pay cc bills so we couldn't afford anything but basic necessities. I really need a new couch, ours is disgusting and ripped to shreds, my daughter needs a new bed and my cats need their shots. Will spending my unemployment benefits on these things look bad?

[keepmine]

Ok, thank you both. I'll bite the bullet and resist making any payments. I hope nobody sues. I have to wait to file because my husband got an unexpected bonus in March and we were already slightly over the median. I'm trying to do whatever I possibly can to file 7 instead of 13.

My unemployment benefits are delayed because they're so far behind (13% unemployment here), and my ex boss is a witch and contesting my claim. She won't win, she has no reason to do this but it's holding me up.

That brings me to another question. My UE benefits are exempt as income under CA law, but I still have to show what I've done with the money, right? I used to spend all my earnings to pay cc bills so we couldn't afford anything but basic necessities. I really need a new couch, ours is disgusting and ripped to shreds, my daughter needs a new bed and my cats need their shots. Will spending my unemployment benefits on these things look bad?

Spend your money however you like. You're not under the trustees control.

[trueblues]

Spend your money however you like. You're not under the trustees control.

OMG, its such a relief to hear this. We've let the house go to the point where it's embarrassing to have anyone over. It won't be much, but every little bit will help. Thank you!

[Mi Bankruptcy]

Just keep current on anything you plan to reaffirm\keep ( house, Car etc)

[trueblues]

Just keep current on anything you plan to reaffirm\keep ( house, Car etc)

Yes, thanks. We don't own any property but we'll reaffirm the car. We have no equity in it.

[poorold]

If you know for certain you are going to file bankruptcy, then you have 2 options:

a) you can speak to the credit card companies and collection agencies who call you and you can try to explain that you will not be paying them, etc., etc., etc. but they are only interested in figuring out how to get money out of you...any amount of money. they could care less about you as a person or your particluar situation.

My friend just spoke to Chase yesterday and the woman drilled him about how was he paying his utilities, etc. and why hadn't he paid his Chase bill?

It is an endless cycle that wears you down and makes you feel about one inch tall.

or


b) you never answer the phone and never return their calls when they leave a message. that's what I did. it is hard at first and I shuddered every time the phone rang. but after a while, the calls dwindled to nothing. I got letters in the mail regularly (all form letters spit out by the computer based on how long overdue I was). Even the letters have stopped.

I check my local Clerk of Courts website daily or weekly to see if anyone is suing me. I saw my foreclosure and American Express suits long before the process server showed up.

I will be filing before a judgment is rendered in either case.

It took American Express NINE months to file suit and I owe them over $45K and I NEVER answered the phone when they or their collection agency (James A West out of Houston) or their attornies who they hired to sue me called and called and called.

The bottom line is don't let them yank your emotions around and guilt you into parting with your money.

Take control and choose your path.

Talk to an attorney, their initial consultations are usually free.

Another friend talked to an attorney. He told them stop paying everything now and come back in another couple of months when you are ready to file.

This forum is also very good to hear other people's stories and strengthen your resolve to get through it with your head up.

[trueblues]

I really want to thank all of you who've replied. You've helped ease my mind and fears so much. You all know how trying it is making the BK decision and getting the process started. I've also learned a lot by reading the posts.

I think I'll have to answer the calls occassionally because my husband is freaked out that someone will call his work, or his parents and siblings if they can't reach us. His family wouldn't understand even though what really sunk us are medical bills due to his poor health, then my job loss. My husband already is terribly conflicted about BK because of this upbringing, and if his family finds out it would add to our problems.

I dread the upcoming calls. Not just for myself, but for my kids who are young, but old enough to know something is wrong when the phone starts ringing off the hook. I can't turn it off completely because they get calls from their friends.

I think I can save enough by July to get an attorney. I've talked to a few but they just went over the BK basics and won't give detailed answers about our case until we make a down payment.

Anyway, thanks again for your support. I'm very grateful for this forum. Sorry to be so chatty today!

[poorold]

good luck trueblues.

you are right about them calling your family members to find you. I informed my parents and brothers that they might be getting calls and the simplest way to deal with it was to say you did not want to talk to them and don't call me again and hang up.

within 3 days, my mother called and said someone called them.

it's a tough time and my wife is very embarrassed and didn't (and doesn't) want anyone to know.

I, on the other hand, have decided it's just part of life and I don't care what other people think. Mostly they are interested in hearing a little about it and more often than not relate a story about a friend or family member of theirs who went through bankruptcy.

believe me, by this time next year, it will be a rare person who doesn't know someone who has filed bankruptcy or lost their job.