stopping payments question...

[mm2009]

I have credit lines on maybe 6 cards..

A few of them were created with in the last year.. one back in august, merely as a balance transfer to secure a better rate (i've made 2 payments on this one, with a balance of $995).

Another was a balance transfer as well, but it was very early in 2009 i think. ($3650); and another one to another card at $5000 jan 2009 too.

Due to separation (living together), i had loaned my wife the $500 credit card i have to buy groceries and made regular payments to the card (all cards current and paid up)..

I also let her use 2 other cards for groceries recently, as recently as october..

I myself, used another card (that i've had for years) to make small purchases that i could say are work/phone related, for accessories on things that broke, made some payments (slightly above the minimums).. but those were done within the last 20 days..

On the same card, i had used it to pay $500 for divorce attorney fees back in july.. On a different card i paid $1500 to the same attorney back in july as well.

Back in july i wasnt thinking BK.. now of course, things have dwindled and i have no choice..

**I guess my question is, if i stop payment right now on all of these cards, including the one balance transfer card, is this likely to come back to bit me at the hearing date.. or should i wait another month or two? (or is it only the point of filing that matters, not when i stop payment.. ie: just wait 3 months to actually file, but stop now with payments, so i can pay the attorney)

The recent purchases are all $200 or less (at one time), most grocery/gas related, except a bunch of smaller $20-$40 ones i had made (i had my card account tied to an amazon account and just used it, hence those were on there, wasnt thinking bk at the time either, even 1 month ago).

(i had been using the cards for other purchases back in 2008 and even into early 2009 alot as well, usually car repair or computer repair related though, but this was some time ago, relatively speaking).


Also, as recently as august 2009, my parents put $1500 in my account, because my wife had "taken" $1500 from my checking account, draining it. (i also transfered the remainder of my savings ~$700 at the same time in august). Are these two going to cause issues as well, if i dont wait a little longer (late aug 2009)..


Do they grill you on individual purchases at this hearing, or only ones that are large amounts (even ones pre 3 months ago?)?

Any thoughts?



Thanks

[ace13]

I'm a 'newbie' here and had similar questions regarding the 90/70 day rule and questionable charges. The forum has responded with good info. Basically I understand that:

1. Consult with a few BK attorneys- most consults are free
2. Continue making small payments to questionable loans/cc until you file for BK
3. Stop using all cards and don't apply for new credit
4. Don't rush in to filing BK if there is no reason to rush which gives time for charges to age.

Of course if you retain counsel, listen to your attorney. Also check out he recent threads I posted regarding similar questions. Good luck to you.

[mm2009]

I'm a 'newbie' here and had similar questions regarding the 90/70 day rule and questionable charges. The forum has responded with good info. Basically I understand that:

1. Consult with a few BK attorneys- most consults are free
2. Continue making small payments to questionable loans/cc until you file for BK
3. Stop using all cards and don't apply for new credit
4. Don't rush in to filing BK if there is no reason to rush which gives time for charges to age.

Of course if you retain counsel, listen to your attorney. Also check out he recent threads I posted regarding similar questions. Good luck to you.

Thanks for this, i just took a look at some of your threads too..

I do have attorney.. he is telling me to stop paying now, but he doesnt really have my timeline or info packet yet.. so i think this is bad to do

You say to make small payments.. you mean even below the minimum amounts that i'm supposed to make.. i would assume

As of now i have stopped using all cards, even for groceries.. ie: as mentioned i last used for groceries around 10/20 or so.. but major purchases except for attorney fees were back in july.. i didnt consider this avenue until very recently and didnt realize the exact stopping points till now.

I had initially, in the last week or so, attempted to go with the idea of getting a new/used car before stopping payments/filing.. but based on what i think i'm seeing, i may get lucky and get a good interest rate through my credit union after discharging.. financially its more sound to wait too (however my car was wrecked into, still waiting to see how that turns out).

I had made some inquiries into my credit report in the last 15 days.. i was also thinking of opening another credit union savings account with $5 in it, for use later on.. perhaps this isnt a good idea either?

One of the car loan deals wanted me to apply for a credit card (in last 10 days), which i did try for their $250 limit one, to get the lower rate, this attempt of course failed.. did this reset me 3 months as well?

Thanks again for any help/incite

[AngelinaCatHub]

I believe you would feel better waiting. I think you feel this. Time is your friend if there is any doubt. Pay the minimums to all cards. Do not stop one and continue another. 'Hub

[whipster1]

You can even make "token payments" of less than the minimum if you want...worst case scenario you pay back some of the recent purchases.

In my case I had to charge a tank of gas the day of filing...I was absolutely broke after paying my Attorney. I also had bought tires at Sears for 400.00 a couple of months before and made only one small payment before filing, expecting to reaffirm the debt. Never heard from Sears about a reaff so that debt went *poof* also

Good luck.

[backtoschool]

I would make some more token payments a wait a bit. AP's are expensive to fight, and all of those somewhat recent transfers could possibly trigger an AP.

[OhioFiler]

I would make some more token payments a wait a bit. AP's are expensive to fight, and all of those somewhat recent transfers could possibly trigger an AP.

I don't see anything in the OP's story that would trigger an AP even those transactions last summer. I'd stop paying now.

[OhioFiler]

Congrats Backtoschool on your status change! I've always heeded your advice as though you were a guru! Now it's official!!!

[backtoschool]

Congrats Backtoschool on your status change! I've always heeded your advice as though you were a guru! Now it's official!!!

Thanks OhioFiler!

[HakunaMatata]

Regarding the car...

If you can get a good interest rate now, I'd lean toward making a purchase prior to filing. I don't think any financial institution is going to offer a better rate post-BK rather than pre-filing. Other posters have had problems securing auto loans with CUs post-BK (they mentioned there was a two year waiting period). Of course, if you have existing debt that you intend to discharge with a CU, you should avoid securing an auto loan. CUs oftentimes have cross-collateralization clauses that can cause issues.

[ace13]

Thanks for this, i just took a look at some of your threads too..

I do have attorney.. he is telling me to stop paying now, but he doesnt really have my timeline or info packet yet.. so i think this is bad to do

Personally, I think you need to get the timeline info to your attorney and if the attorney still advises to stop paying now, then listen to him/her. If you are open and honest with your attorney, and your attorney provides you with legal advice, I would suggest following that advice. That is what you are paying him/her for. Otherwise, you'd file your petition pro se, correct?

For me, I'm hoping to ride it out past the holidays to file. That will give me about 6 months without using cards/credit and a better chance at no AP being filed. I felt awkward about stopping payment on my debt too, that's why I really began reading the forum and posting here. I received good support so far. Obviously, it's your decision when it comes down to it.

Good luck, and remember I am only a "newbie."