Help! Lost job and have recent charges.

[Michellemg]

I have just lost my job. I was there for 10 years. I have lots of purchases on my credit card from August-December. I have never missed payments on any credit cards. I cannot afford the minimums much longer. They are over 1000 per month. Do you think that my creditors will dispute the charges? Is there anything I can do to minimize the risk at this point? I cannot file til September cause I am well over the median income at this point.

[ApresMoi]

What did you buy? If it's the usual stuff -- food , gas, clothing -- I wouldn't worry about, and your creditors probably won't either. But if you put a 10K Caribbean vacation on one of your cards, or took out a great big cash advance, then you will want to put some distance (time) between that purchase or cash advance and your filing date.

Do a search in the forum, and you should find plenty of info on this topic.

[rogue22]

Just to let you, if you stopped paying your credit cards now, it usually takes about a year for them to bring a lawsuit against you so don't freak out... you have plenty of time. This is how long it took for me: lost my job in Jan. 2010 and stopped paying credit cards, for 3 months they gave me late bill notices, month 4 it finally went to collections and that began the annoying creditor phone calls, month 5 through month 9 sent me several settlement notices, month 10 finally served with lawsuit papers and I "answered" the lawsuit, month 13 finally received more paperwork from creditor attorney wanting more info regarding the lawsuit.. still no trial date. Im just trying to delay my bankruptcy for 6 more months for certain reasons. If the trial date comes before the 6 months, i'll just settle with them and make a couple monthly payments and then file ch.7.

So my point is, CALM DOWN, TAKE A BREATH, YOU HAVE PLENTY OF TIME. I believe trustee's are more concerned about payments made within 3-6 months before your FILE DATE. If your filing in Sept, thats plenty of time. Just dont use your CC anymore obviously.

[ApresMoi]

I have just lost my job. I was there for 10 years. I have lots of purchases on my credit card from August-December. I have never missed payments on any credit cards. I cannot afford the minimums much longer. They are over 1000 per month. Do you think that my creditors will dispute the charges? Is there anything I can do to minimize the risk at this point? I cannot file til September cause I am well over the median income at this point.

If you are planning on filing, and it sounds as though you are, stop paying your cards. If you can't afford it, admit it and stop paying, rather than draining yourself dry trying (as I did ). When they start calling you (and they will -- in my case it only took them a little over a month after I stopped paying before my phone starting ringing) my advice would be not to talk to them. Because they will try to get 'useful' information out of you that could be used against you in any lawsuit. You don't have to talk to them...you're not required to. Or, if you do take some calls, be vague about everything but the fact that you can't pay right now. Don't tell them who you were working for, how much you were paid -- none of that. You also have the right to ask them to contact you only in writing (there's a sample letter somewhere in this forum that I found and used). The other poster is right...you have some time to figure out how to proceed. The best advice I can give is to read as much as you can in this forum -- read, read, and then read some more. Learn as much as you can to prepare.

[Fallonedward]

We were in your shoes. Hubby lost his job 11 months ago and this was after 5 consecutive years of both of us taking heavy pay cuts from our employers. We stopped paying and filed BK in Nov of 2010 and just got discharged this year.

The best thing you can do is search these forums and learn as much as you can and prepare yourself to your best ability. It will be ok

I have just lost my job. I was there for 10 years. I have lots of purchases on my credit card from August-December. I have never missed payments on any credit cards. I cannot afford the minimums much longer. They are over 1000 per month. Do you think that my creditors will dispute the charges? Is there anything I can do to minimize the risk at this point? I cannot file til September cause I am well over the median income at this point.

[Michellemg]

Thank you very much everyone. It sounds like it might be ok since I'm not filing til September or so. I thought that since I bought expensive stuff and only made a couple minimums after that I would be dead in the water but I had no idea I would lose my job and become unable to pay.

[espo1357]

I have just lost my job. I was there for 10 years. I have lots of purchases on my credit card from August-December. I have never missed payments on any credit cards. I cannot afford the minimums much longer. They are over 1000 per month. Do you think that my creditors will dispute the charges? Is there anything I can do to minimize the risk at this point? I cannot file til September cause I am well over the median income at this point.

This is the perfect time to file for a 7, because you will qualify.

It should not take til September, unless you are making well over 100k/year.

The CC companies will not get a penny. I went over a year before I filed, and they didn't get a dime.

Good luck.

[startover24]

You should be able to go at least 6-7 months before you'll get a summons. I quit paying in June 2010. I received my one and only summons about Jan 20 2011. What were your big charges?

[espo1357]

You should be able to go at least 6-7 months before you'll get a summons. I quit paying in June 2010. I received my one and only summons about Jan 20 2011. What were your big charges?

ARe you still in the home?

[Michellemg]

My big charges were for clothing, a balance transfer and a handbag. If only I had known. I've never taken a cash advance. I just liked shopping a lot so there's a lot of clothing store charges.

[tobee43]

My big charges were for clothing, a balance transfer and a handbag. If only I had known. I've never taken a cash advance. I just liked shopping a lot so there's a lot of clothing store charges.

michellemg....you have rec'd some excellent advise here....

i just want you to know....we wanted and it was HARD...2 years before we filed...we needed TIME......

i would take the advise and WAIT as long as you can. i do know...or should say i have HEARD a few stories here and there about the 90 rule...but fraud is difficult to prove in a court of law....and i would just cover yourselve and wait it out......block the collection calls...etc.

and by the way.....we had a few judgments ........but not a ONE from any of the credit card companies...and again it was 2 years....wait as long as you possibly can to put some TIME between YOU and the charges...

best of luck...it will be ok..promise!

[scorpion35]

Just to let you, if you stopped paying your credit cards now, it usually takes about a year for them to bring a lawsuit against you so don't freak out... you have plenty of time. This is how long it took for me: lost my job in Jan. 2010 and stopped paying credit cards, for 3 months they gave me late bill notices, month 4 it finally went to collections and that began the annoying creditor phone calls, month 5 through month 9 sent me several settlement notices, month 10 finally served with lawsuit papers and I "answered" the lawsuit, month 13 finally received more paperwork from creditor attorney wanting more info regarding the lawsuit.. still no trial date. Im just trying to delay my bankruptcy for 6 more months for certain reasons. If the trial date comes before the 6 months, i'll just settle with them and make a couple monthly payments and then file ch.7.

So my point is, CALM DOWN, TAKE A BREATH, YOU HAVE PLENTY OF TIME. I believe trustee's are more concerned about payments made within 3-6 months before your FILE DATE. If your filing in Sept, thats plenty of time. Just dont use your CC anymore obviously.

1 year? good luck
chase sued me 5 months after i stoped paying my credit cards

[startover24]

1 year? good luck
chase sued me 5 months after i stoped paying my credit cards

Chase was the one that came after me too! About 6 monhs though.

[Michellemg]

Uh oh. Two of my cards are with Chase. I owe 11000 one one and 18000 on the other.

[startover24]

Uh oh. Two of my cards are with Chase. I owe 11000 one one and 18000 on the other.

We owed them about half of your total, but I don't think that mattered. We owed someone else alot more and they never sued.
Do you have any income now? Unemployment, etc.