Newbie ~ Hello & I could really use some help re: payday loan hell.

[Drazil65]

"Is there anyway to manage or 'time' things so that I can revoke the ACH's without ruining my credit? Anything I'm missing that might be helpful"

I am sorry but I HAD to laugh when I read this as you do understand your filing chapter 7 right (no disrespect intended)? You can't "ruin" your credit more than filing chapter 7 I think!!!!

The previous post by Bochen is good advice and worth reading over and over especially the last part about NEVER using payday type loans again. You should have a good plan for post bankruptcy and learn to live on cash, if you do not have a good plan you will be right back in this very situation in a very short period of time with no recourse. Please do a lot of research and come up with a plan to change your financial lifestyle and your future. Good Luck!

[bcohen]

"Is there anyway to manage or 'time' things so that I can revoke the ACH's without ruining my credit? Anything I'm missing that might be helpful"

I am sorry but I HAD to laugh when I read this as you do understand your filing chapter 7 right (no disrespect intended)? You can't "ruin" your credit more than filing chapter 7 I think!!!!

Yeah, I got a chuckle out of that too. If someone is strapped for cash to the point that they're thinking about bankruptcy, then their main concern should be conserving cash and cutting expenses--not trying to boost their credit score! Paying on debts which are going to be discharged with the hope that they won't report any delinquencies to the credit bureaus would be the biggest waste of money I could imagine.

BTW, once you file for bankruptcy, the automatic stay does not prevent creditors from reporting late payments. Mine continued to report a new charge-off status each month through the pendency of my case, and only updated the accounts to $0 balance and quit reporting new charge-off statuses after the discharge was granted. Therefore, unless you plan on keeping the payday loans current until discharge (which would be very foolish, and defeat the purpose of bankruptcy), it is very likely that one or more late payments will hit your credit reports even if you keep paying for now.

[HopefulMamma]

Thank you Drazil and bcohen..

Well, glad I could provide a laff :P heaven knows all of us here could use as many of those we can get right?

I am 'ok' w/stopping payment on all unsecured loans/debts but when my husband realized that the lates, collections, etc.. would 'showing on report for 7 years' I guess he feels that it still would be affecting us going forward. Are those negatives really not used in calculating one's score, post bk?

Do creditors -- say car loan companies - really not look at the 'before' picture, in making a lending decision?

Is the post bk score really not affected *at all* by PRE bk negative/derogatory info?
I definitely wasn't aware that creditors may keep reporting lates & collections even after automatic stay.. As I understand it tho', if this happens, it is a violation of law and could be 'fixed' on report. And, if people are fixing these errors, I assume that there must be a benefit (score wise) in doing so?

I'm very thankful to have your input and experience shared here... I hope you don't mind my direct and sometimes laughable questions. I really just want to understand enough about how pre bk lates affect post bk scoring and eligibility for loans (we hope to use VA loan to get a home in 2 years post bk) so I can explain to my HUSBAND why this is a waste of cash.
Additionally, I'm reading about the instance where payments to creditors prior to bk are sometimes revoked/clawed back (?) by trustee & redistributed among all creditors. I don't want that to happen (tho' I suppose it could even as of this moment because they look at the 90 days or so before bk).

Also, I'm having a super tough time finding ANYTHING on the internet with regards to noting PAYDAY /INSTALLMENT loan payments that are made within the 90 day people before bk.

I made a $600 payment to LendUp the past several months, but then RENEWED/took out another loan immediately -- so IN EFFECT - paying only $163 (or so) each month.

Does you or anyone know how these types of payments are to be noted on bk paperwork??

This concerns me because trustee could see - oh, C made 1800 dollars worth of payments to LendUp in the past 90 days (and thus may try to collect this money from the creditor for redistribution), BUT again, my actual 'expense/payment' was really $165.

Can you help clarify how to document this or have a resource suggestion?

Thank you!

C

[HopefulMamma]

P.S. The more I think about it, I think we might just go for utilizing an attorney - if anything for my husband's peace of mind.

[HopefulMamma]

P.P.S.

I just had to mention that *of course* a payday loan will NEVER be utilized EVER again! *Shudder!*

[justbroke]

I'm only going to write about paying a single creditor more than $600 in the last 90 days. The Trustee goes after that creditor. It has absolutely nothing to do with you personally. In some cases, where the creditor is an insider such as a family member, the debtor might want to negotiate with the Trustee to save that family member from being sued by the Trustee. Other than that, who really cares that a creditor has their payment clawed back?

Do not worry about this. That is the job of the Trustee to determine what is property of the Estate and whether they will use their strong-arm powers to recover such property on behalf of the bankruptcy Estate.

You are overthinking this.

[LadyInTheRed]

Does you or anyone know how these types of payments are to be noted on bk paperwork??[/B]

It's a question on the Statement of Financial Affairs.

Stop worrying about your credit report. That should be your last concern. Your credit will improve in time and you will be able to get credit again.

[HopefulMamma]

Thanks, JB... LOL! Yeah, overthinking things is not something unusual for me.. Sorry, hope I'm not to the point of annoying!

I appreciate you taking the time to explain .. I see how I don't need to be concerned about this.. Oy..... Time for an attorney, me thinks... I'll let him do all the thinking for me! :P

[HopefulMamma]

Right, Lady.. For the very reason JB cites.. "Overthinking" LOL! Ok.. I'm giving this a rest.. Thinking we are going with an attorney.. I've already contacted an office in our area for a free eval.

Thanks for your comments, Lady..