Waiting for lawsuit -- what to do in meantime re: cc's?

[sillywalks]

A house I owned went back to the bank (was house ex and I owned, I refi'd in my name). House will most likely sell for $50K+ deficiency, and bank has said they intend to pursue deficiency -- if they do, I will have to file bankruptcy. However, it may take quite a while for them to sell the house, and there is always the slim chance they will not pursue the deficiency.

So, I am currently paying pretty much just the minimum on my credit cards. I have always paid more than the minimum. Reading on this forum, the advice is often given to stop paying the cards altogether. However, I am concerned about the consequences if I do not end up with a deficiency (and do not file) that my finances will be in such a mess that I would end up filing anyway! I'm thinking that my card interest rates will go up and build up, fees and charges will grow, etc.

So, should I continue to pay at least the minimum until I get confirmation that the bank is filing for a judgement against me? And then stop paying when that happens, filing 90 days later?

Would you go ahead and file (I could not file before January)? I don't want to waste my money, but neither do I want to work my way into having to file even if I escape the deficiency. I do legitimately owe the money...I don't know what makes the most sense.

Thanks for any advice.

[ccsjoe]

Before you stop paying your credit cards you need to know if you are going to be filing. Otherwise, the mess you will create will become a self-fulfilling prophecy and you will most likely end up filing. No reason to stop paying now since you don't know one way or another.

[sillywalks]

that is definitely what I am afraid of! But, the bank I am dealing with has a firm policy of pursuing the deficiency (as I was told by the federal person facilitating the closing of the bank that originally held the mortgage and the moving of assets to the bank that currently holds it, and two different staff with the new bank). The last person I spoke with said that it is already noted on my file that they will pursue the deficiency. I don't know if it is just the bank blowing smoke, but my feeling is that they mean what they say -- thus my feeling I will be filing.

[tcreegan]

Hi sillywalks,

If you know a real estate agent you can ask about the property, is it listed? how much? what has been selling in the neighborhood?
This will give you a clearer picture of what is going to happen when, might help w/ your decisions.

Also you can post the bank name and ask if anyone on the forum has experience with them, or do a search

I definitely would NOT stop paying the ccs unless you know you are filing the BK. This gets into a big mess fast and forces you into filing anyway.

the last of my 2 cents....do you have a magic 8-ball?

Tom in Colo

[sillywalks]

Tom --

If I had a magic 8-ball, you can be sure I would drop it, or it would say "try again later" every time I asked it a question! lol That's the way my luck has been going this year, financially speaking. The bank is South Carolina Bank and Trust. I have tried Google, ran across a copy of legal paperwork indicating SCBT pursued a deficiency against someone in August of this year (for around $50K).

I plan on checking in to see about the house (I have a friend in real estate).

Would you pay just the minimum's on the cc's, or pay them like I would normally (if I did not think I would file bankruptcy)? I am wondering, partly, because if I were to file in January, and I have paid some of the cards more than $600, won't the trustee take back that money anyway? Hmmm...what if I have paid ALL my creditors more than $600 in that time -- would that cancel out the preferential treatment issue?

Thanks, Tom, for the humor and advice. You are definitely a friendly face on this site (so to speak). :P