Paying Through....but Now or Later?

[ToughSpot]

Hi All,

It's been a while since I posted. Just been quietly planning and letting time be my friend. I never imagined we could hold out this long. We are finally getting served with law suits. I have multiple unsecured $50k+ accounts out there and those are the ones who are filing against us.

Now that we are hitting the 6 month past due mark, many of the smaller $20k or less accounts are making settlement offers of 25-50%. Obviously with a pending Ch7 there is no reason to entertain settlements.

We plan to keep our house and are now 33 days late (just owe April). Our plan is to just pay through and not reconfirm the loan. The loan is a conventional 30yr fixed with Wells Fargo. I am unclear as to whether they will even accept payments before discharge. I am trying to decide if we should kill ourselves to get April paid before we file in a couple weeks. OR can we just wait and make one big catch up payment in 3 months or whenever they get the automatic stay removed?

Which brings me to my second question. If I were to get some temp consulting work shortly after filing but before the 341 is that going to look bad? How about after the 341 does anyone (especially the UST) care if I start earning more money before discharge?

Thank You,
TS

[blockhead]

I rode through with WF and still pay them online just as I used to. Only difference is they add "This is for informational purposes" on the statement. I didn't get them any reason to think about foreclosing anyway, and in this state (MA) they can't accelerate the note because of a BK filing according to my atty.

[justbroke]

Generally speaking, you should be current when you file if you are going to do the ride-through. Otherwise, they will file for relief from the automatic stay and may pursue their non-bankruptcy options.

As for earning money, the Trustee usually asks if anything has changed with your job during the 341 Meeting. This is to see if you have changed circumstances. After the 341 Meeting, no one generally cares. (Note that there are some Trustees which don't care even if you do get a part-time job before the 341 Meeting.)