When waiting 6 months to file...do you pay CC meanwhile?

[JJCA]

I have been reading about the potential benefits of waiting 6 months before filing BK. If you do so, do you stop paying your credit cards during that time? Obviously you would need to stop charging on them. I have never been 30 days late on a CC, and was thinking to file before I was that late on anything. (damage control of credit score as part of the reason, get it done & over with so life can go on as the other part of the reason). I don't really have the money to keep paying CC, but am wondering if this is what others 'usually' do. (Stop paying and wait 6 months to file)

JJ

[carlsbadmike]

JJCA,

I too wanted to file right away before I was late on any of my credit cards and was advised by my attorney to wait for 90 days after my last payment to the credit card companies. So much for wanting to be proactive and not late.

Good luck to you.

Mike.

[tobee43]

we waited two years!!!!!!! but only stopped paying approx. 6 months prior to our filing date....we didn't wait to give them enough time to file suit...

[discouraged]

I stopped paying them June 2010 and finally filed last week - so mine was 10 months. But - mine weren't large, my main problem is my underwater house and I've been unemployed for a long time. But, 6 months seems to be the average. That gives you time to get the money together for the lawyer.

Make sure you do not use any credit cards at least 90 days prior to filing. That's standard throughout the nation. If you do the lawyer will just make you wait until it drops of the 90 day mark. Using cards right before filing leads to presumption of abuse.

[discouraged]

Sorry - I do see that you said, obviously you would have to stop using them.

[daylate]

I stopped. I think 98.6 % of the posters here stopped (based on reading these threads obsessively for the last 8 months or so). Makes no sense to keep payingas your credit will take a hit from the bankruptcy. Many used the $ to pay their attorney, catch up on needed things, start transitioning to a cash based lifestyle, etc. Only time I think it may make sense to keep paying is if you had a very large cash advance or luxury purchase very close to the 6 month cut-off. By continuing to pay that one you are demonstrating good faith that you didn't ring it up because you had no intention of paying for it. of course you have to be careful about not paying more than $600 in total to that creditor in the 3 months prior to filing. Good luck.

[frogger]

You would only need to wait 6 months to file if you needed some income to drop off. Otherwise, 90 days past last cc usage.

[tobee43]

You would only need to wait 6 months to file if you needed some income to drop off. Otherwise, 90 days past last cc usage.

i agree with that normally........but we were anything but "the norm"....we needed to truthfully answer NO to some of the questions on the petition....so we needed to wait 2 years...since i believe it was 2-3 questions on our state petition ....within the past 2 years...did YOU...this or that.

truth rules....and lies are hard to remember.....

we wanted to be honest and so the only way for us to do that was to wait...actually...we went underground!

[frogger]

truth rules....and lies are hard to remember.....

I agree. Truth rules, along with proper planning.

[JJCA]

Thanks for the replies. I am trying to 'plan' that is why I asked. I have consulted an attorney, he seems to think I should file ASAP, since I had no luxury purchases etc. in last 90 days. Mainly used CC to survive. But some things just are not sitting well, and others even seem to go against what I have been reading here. I suppose I have no choice but to not pay, since I have no money to do so with..but still made me wonder what others do. So many seem to put distance & time between charging & filing...made me wonder what they did about paying!

Thanks again for the input
JJ

[tobee43]

I agree. Truth rules, along with proper planning.

got that....and i'm sure glad i knew the game of chess......wow...it was a tough ride there for awhile.

[tobee43]

Thanks for the replies. I am trying to 'plan' that is why I asked. I have consulted an attorney, he seems to think I should file ASAP, since I had no luxury purchases etc. in last 90 days. Mainly used CC to survive. But some things just are not sitting well, and others even seem to go against what I have been reading here. I suppose I have no choice but to not pay, since I have no money to do so with..but still made me wonder what others do. So many seem to put distance & time between charging & filing...made me wonder what they did about paying!

Thanks again for the input

JJ

it's really good your planning...many of us, just never expected this to happen to US..no way....so we go into survival mode....and it's great to have a sound plan...it just helps a bit with the stress....

best of luck to you...i'm sure you'll do fine....and keep us posted..

[NoMoreCards]

Every story is different, I decided to keep paying the minimums right up to the date I filed simply to have no "late" showing on my CR. Granted the BK was a huge hit, but after clean up, I had no late marks to deal with. The CR will show IIB, and after filing date nothing can be recorded, however any late payments prior to filing can still be reported.

If you are unable to pay the minimums...then by all means, don't. As I said, each story is different and in the end you need to do what is right for you and your family.

[tcreegan]

Hi all,

Shouldn't base BK decisions on your credit score. Make BK decisions on maximizing your long-term and short-term financial position.

If the BK is 200 pts, pre-BK history is 5 pts And some post-BK credit rebuilding would be 100 pts.

...of course, a fat cash downpayment always gets their attention

Tom in Colo

ps: it shouldn't be too hard to get pre-BK negative notations removed.

[Unibrow]

I am in CA as well. From what I see so far, our state seems more lenient on documents and such unless you stick out like a sore thumb. If you pass the means test and don't have many red flags, then you may file sooner than say someone from FL. Unless you have to file now, waiting 6 months is a good plan just to be safe. I am filing this month. I stopped paying the credit cards the first time in my life last August. You might want to consult with several more attys in the area to get the feel of the local area's rules.

If it weren't for the large amount of unsecured debt, I would've filed sooner. The 6 months wait is quite long time to put your life on hold. Once you file, it takes another 3 months until discharge. But overall, it's just a small price to pay for a fresh start and a painful lesson learned.

For peace of mind.
1. Change your home# and cellphone#. Get google voice# and give them that number. Go to the google voice option and turn on the "do not disturb." You will see the missed calls and any voicemails they leave. You will not be bother by 25-30 phone calls each day.
2. Stop paying your cc and save the money for an atty and food and shelter. Get a health checkup as well. Make sure you have a reliable car when you get your fresh start.
3. You probably don't have to worry about lawsuits for about 6 months, but keep all your collections letter and anything from the creditors. Makes filing much easier later on.