Should I just stop paying?

[ChrissyF]

I plan on filing BK 7 I have already spoken to a lawyer and qualify. I have been paying the minimums & have some agreements with some cc companies due to a hardship. I plan on filing after a mortgage settlement or modification on my 2nd mortgage has been resolved. Which I am not sure how long that will take.

Plus I am still trying to come up with the lawyer fees. Should I stop paying & call the one's that I have an agreement with & tell them to stop taking the money out each month?

I don't know if I am better off stopping or continuing until my mortgage is worked out. I honestly NEED that money that I am paying to the cc companies. Each week we pretty much live paycheck to paycheck.

[nerves]

I am not real familiar with the mortgage modification but I have seen several posts on the site where it was advised if they filed bk during the process of getting the modification - the modification would be cancelled and you would need to start over after filing bk.

You did not state if you planned to keep the home but I am going to assume you want to based on the modification. If you plan to keep the home - you need to stay current on your mortgage.

If the cc companies are taking the funds from your bank - telling them to stop the auto drafts may not do the trick. It may be in your best interest to change banks and close out the account they are pulling the funds from. Your current bank probably will not do anything to stop the auto payments (even if you request them to).

If you call the creditors and advise you are stopping payment - you are opening yourself up for endless calls before they need to start. The creditors don't take long to start calling after you a missed payment.

Since you know you will be filing, you are wasting your money paying the cc. However, if you have recent purchases or large cash advances, balance transfers, it may be in your best interest to continue paying the minimum for awhile. You should be direct with your lawyer on what recent charges and if you have any large transactions in the last year or so. Your lawyer will be best equiped to advise on what you should/should not pay from now until you file.

Best of luck to you - Nerves

[BobMango]

If you've already decided that bankruptcy is your best option moving forward, then you are throwing money away by continuing to pay on your unsecured credit card debt. Keep that money and save it up for your attorney.

I would keep paying on the secured debt if you can as long as you plan to keep the property.