Stop paying everything?

[Panacea]

I'm worried and no contact with the lawyer this weekend.

How can this help me when I do file? If I'm still employed, but stop paying cc's, mortgage, and car even though I do have money? Won't this put me towards chapter 13? I mean if I'm giving up the car and house, I'll have money left over. Why would I abandon everything when I still have a job? I'd love a "fresh start" but am worried this may hurt me in the end with the courts.

This will be the first month my cc's are late, and I don't pay mortgage and I'm having a hard time stomaching it.

Thanks again for listening.

[brokejoker]

We had to make sure our mortgage and cars were current before we filed. We are still paying our house, cars, and student loans. It's all the unsecured creditors that are being discharged in our BK that we are not paying on.

If you want to keep your stuff you need to keep paying for it. If you do have plenty of money leftover after you quit paying your CCs and the things you are letting go in BK then you probably will have to file chp 13.

[drowning123]

Pan, you must live somewhere, whether by renting or owning. Of course, the trustee will take into consideration your shelter, so even if you stop paying your mortgage, you will eventually have to pay a landlord after surrendering the house. At least, that's how I see it. I'm behind on my mortgage and I stopped making car payments. It depends on what you hope to accomplish with your BK. I plan on surrendering everything. I have money left over, too, if I don't pay my mortgage and car note, but that left over money would be for rent after I get kicked out of the house.

[Charlie777]

Your income for the means test is based on six months actual.

Your expense budget for the means test is based on the IRS guidelines for your area (what they allow for a payment plan), with some adjustments for actual expenses. So the only thing that might impact your budget would be if your housing expenses are significantly higher than the allowance, and you can claim the extra, and you need that to meet the means test.

But my best advice to you is - wait for your lawyer and follow his advice. If you aren't comfortable with your lawyer, find one you are comfortable with. If your lawyer practices regularly in your local BK court he knows exactly how to do things.

[drowning123]

That's true Charlie. My lawyer has been in the courts for 35 years so everyone knows him. He took care of everything for me. That helped.

[tcreegan]

feeling goes away

Hi Panacea,

This will be the first month my cc's are late, and I don't pay mortgage and I'm having a hard time stomaching it
This is tough on a lot of folks, especially if they have never been late or not paid a bill before...but the feeling goes away. I think it is a holdover from the days when you knew your creditor personally and shook hands on a deal.

brokejoker has the right advice: keep paying on the house or car if you plan to keep them through/after the BK. If you are not keeping it, stop paying on it. And stop paying CCs.

To keep from being pushed into a 13, use the savings for legit expenses: new housing arrangements (1st/last/dep.), medical/dental/vision expenses you have been putting off, getting a low-mileage used car for transportation or doing all the maintenance on the car you are keeping, and folks here can add more.

Hang in there, you will get to talk to your lawyer before you know it,

Tom in Colo