Good Timing! - Foreclosure & Chapter 7

[sjcmCA]

Hello, I am pretty new here.

I have a question about "Good Timing" for my situation.

I will be able to be qualified for Chapter 7 in Feb, 2010 due to my income reduction. I projected this reduction for the next 6-month.

Even though my income will be still slightly over California's median income, my mortgage expenses will make me pass the means test for Ch7.

Based on this situation, when should I stop all payments?

If my house is foreclosed very fast (Dec 2009?), I would not be able to claim the mortgage expenses in the means test, right? Then I would not pass the means test.

How about other credit card payments? Should I pay all min payments until I file Chapter 7 to avoid any wage garnishments or judgements?

Any advices will be helpful to the newbie.

[fooked]

you may have some time... are you current on your mortgage?

[ForumReader]

Hi welcome to this forum! You mentioned that you would be qualified for CH 7 next Feb 2010. Do you plan to file for BK in Feb 2010 or after that? I would suggest making minimum payments on your ccs for a couple more months if you can and then stop using them at least 90 days prior to Feb 2010.

Good luck!

[sjcmCA]

Thanks for your responses.

I am current on Mortgages but I stopped paying them from this month.
Some recommend me to stop all my CCs payments RIGHT NOW if I am sure to file ch7 in Feb 2010. Is this too early to stop all payments now?

I am really concerning about wage garnishments before I file ch7.

I read a post to recommend to pay a small amount ($10 - $30) to all CCs to avoid early lawsuits. Is this just a myth?

Anyway, I am very impressed by these early responses by good people.

I am not alone!

[OhioFiler]

Thanks for your responses.

I am current on Mortgages but I stopped paying them from this month.
Some recommend me to stop all my CCs payments RIGHT NOW if I am sure to file ch7 in Feb 2010. Is this too early to stop all payments now?

I am really concerning about wage garnishments before I file ch7.

I read a post to recommend to pay a small amount ($10 - $30) to all CCs to avoid early lawsuits. Is this just a myth?

Anyway, I am very impressed by these early responses by good people.

I am not alone!

Stop paying your credit cards. You won't have garnishments before February. Most likely you won't have a lawsuit filed by then.

[DeadManCrawling]

I quit paying two and a half years ago, on 90k in CC debt.

So far: one small judgment that they cannot collect. That one happened 8 months after we quit paying.

No other lawsuits.

You are probably fine, with a filing date in Feb. Stop paying, save the money up to exemption limits, pay for exempt items, get dental and medical things caught up and so on. Don't wanna have a pile of cash that exceeds the amount you can exempt, though.