If I cancel autopay with all my chase cards but keep the auto loan payment and have no credit accounts with my bank, can chase use the auto payment option on the car loan to go after the credit cards if I stop paying before bankruptcy? Do creditors ever talk with one another outside of normal reporting to credit bureaus? Hence, if I pay one account a month or so longer than another due to more recent charges, but stop paying on another - does this ever become an issue? Sincerely, Jeff
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Originally posted by jessica0607 View Post
Is your bank account with Chase too or some other bank?
If it is with Chase, then if you stop paying on your cc's Chase can take funds out of your account to satifsfy the past due amounts on your cards under the right of 'set off'. This is before filing BK, not during or after your discharge.
If your accounts are with another bank, then no they can not take funds out of your account without first going thru the court system for a judgment.
Where the payment of one account over another might be a concern is in the case of 'preferential payments'. You are allowed to continue to make payments to your secured creditors (home mortgage, auto loan) without it being considered a preferential payment by the BK Trustee.
However if you pay some unsecured creditors and not others, that can be considered preferential. For unsecured creditors like credit cards, the lookback period is 90 days and for insiders (friends, family, business partners etc) one year. The petition will ask who have you paid in the 90 days leading up to your filing an aggregate amount of $600 or more.Filed CH 7 9/30/2008
Discharged Jan 5, 2009! Closed Jan 18, 2009
I am not an attorney. None of my advice is legal advice in any way.. -
My checking is a joint one with Bank Atlantic with my wife. I will probably be filing alone after the first of the year.Comment
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I don't have any loans or credit cards with Bank Atlantic (my bank)Comment
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