Stop paying for a year?

[OKBK]

I am headed to BK but I have to wait a year. Should I just stop paying CC's right now? I already stopped paying my mortgage. Whats the worst that could happen that would affect me after BK if anything?

[fltoo]

Worst that can happen is that your credit will not rebound as quickly with all the delinquincies before the BK.

I had to wait two years and I had no problems. I received a judgment from Chase that will be vacated. Stop paying all the debt now and go to a cash basis. I used money orders to pay bills and closed all bank accounts. I also saved all receipts, just in case.

I answered all creditor calls and started telling them I was filing a chapter 7.
When they asked for an attorney's name, I just told them I would get back to them. I told them the exact same thing every time they called and the calls were really not that bad to handle in the two years.

Time goes fast. Before you know it, you will have filed and it will be over.

Only thing to worry about is wage garnishment and that is only IF they get a judgment. Check your state for wage garnishment laws.

Staying calm and educating yourself on BK are your best weapons.

[OKBK]

Worst that can happen is that your credit will not rebound as quickly with all the delinquincies before the BK.

I had to wait two years and I had no problems. I received a judgment from Chase that will be vacated. Stop paying all the debt now and go to a cash basis. I used money orders to pay bills and closed all bank accounts. I also saved all receipts, just in case.

I answered all creditor calls and started telling them I was filing a chapter 7.
When they asked for an attorney's name, I just told them I would get back to them. I told them the exact same thing every time they called and the calls were really not that bad to handle in the two years.

Time goes fast. Before you know it, you will have filed and it will be over.

Only thing to worry about is wage garnishment and that is only IF they get a judgment. Check your state for wage garnishment laws.

Staying calm and educating yourself on BK are your best weapons.

When I go to BK won't they ask where all the money has been going? I will need some cash to start over.

[fltoo]

Save the receipts on everything. I purchased nothing extravagant. My money was used on every day expenses.

You cannot hoard cash if you are filing BK. Read some of the posts here where people recommend what to spend cash on.

[fltoo]

I saved all receipts only because I had a few chunks of money coming in here and there. I wanted documentation in case the trustee asked where I spent the money. I have proof that I used it to pay necessary expenses and did not try to hide money.

In reality, they are only looking at the past 90 days of spending. Situations are different, but in my case, I wanted to cover all bases just in case.

[OKBK]

Well one thing to understand for those of us that had to wait for a year or more to file, the trustee for the most part is only looking at the last 90 days. My point is, don't do anything you know to be illegal or questionable during your wait but. On the other hand, do you know for sure you are really going to file BK? I mean look at this way, nothing says you have to file BK. So you live like you had no plan to file. Its not illegal or wrong to do this. In my case I had some assets and I am selling everything I own to live on. At some point I "may" file BK, but nothing says I have too or that I will ever.

But you say, you need "money" to start over, I suggest you read up on what is exempt and what can and cannot keep if you file BK. Lots of people move money into retirement accounts, pay down mortgages to build equity that is exempt, buy some jewelry. Those are all legal ways to pre-plan a BK. If you want to sleep on a bumpy mattress a lot of people do.

But I am not sure what you mean won't they ask where all the money has been going? Want to tell us what money your talking about? Are you sure you will pass the means test? My point being is there shouldn't be that much money going anywhere other than your living expenses.

But in my case, I have sold most of what I owned to live on since I have no job. I am not to worried about BK right now, I am what people call judgment proof. So Depending on if I get sued and by who, and the statue of limitations, its possible I may never file BK. Point being, if I only got sued about a couple thousand dollar debt out of the $230K I owe and the rest went past the SOL, I probably wouldn't file and just pay off the judgment.

So, just cause you look like you need to file doesn't always mean you will. Ask Treehugger.

When I stop paying my $2000 mortgage and the $1000 or more in CC payments, yes I will have extra cash to spend. I still have a job but my wife does not anymore. We will qualify for C7, I looked it up. I need a reliable car to get to work and the wife needs one because we will have 2 kids (one with asperger's) so that also has to be taken into consideration. I will prob need 2 months rent for an apartment up front plus moving costs and all that. I can sell all my stuff but I am just delaying BK which makes no sense. So how much money do you think it would take to get back on my feet with a family of 4? I am not about to end up on the street because of the government and the banks.

[fltoo]

No need to sell any of your "stuff". Just plan ahead. Use all your cash to get settled in your new place and on necessary items. (There are tons of posts on BK forum to advise you of what to spend cash on.)

Check your state exemptions and see if you can exempt some cash. Other than that, you cannot hoard money to rebuild. If you are filing chapter 7, you should go into it as a "no asset" case.

As far as how much you need for the family of 4, your state already determined that by giving you exemptions.

How is Wall St. to blame? Did you lose a lot of money in 401K or other investments. Most retirement funds are exempt, so don't touch that money that is left.

Plan your BK and don't file until you are ready is what BB is saying.

[Confuzed]

Can someone clear the money situation up if you wait and then file since this is a good topic. If you owe lets say 50,000 in debt, and you stop paying, of course you will have some money left over. Lets say you manage to gather up 10,000 dollars or so in a brown paper bag after 3 years because you stopped paying as you were choked off financially and got over your head in debt... Now paying off some creditors from the 10,000 vs. 50k plus mounting penalties would make no sense, you would still have tons of collection agencies plus you had preference over other creditors if you pay 10k of the debt. So you cannot file if you have this money as cash? You must keep spending it? And lets say for this scenario the last 90 days are just withdrawals from your bank account as cash withdrawals, you pay off living expenses but you have some cash on hand. So what happens here? Spend it one bit at a time? Plus I have read the look back period can be up to 2 years?

[BigJohn]

What we did was get the house in ship shape. We insulated the roof, put down new roofing boards and put on a new vinyl roof. We also installed a heat pump. We installed a new hot water heater.

We bought 2 vehicles with payments. The truck came with all the maintenance whistles.

I built a redwood greenhouse.

I built a small garden pool and built some cement block security walls.

Update water fixtures in house. Buried electric and water lines in back yard.

There are so many things that money can buy. Just have to plan.

[debtmonster]

After spending hours on Auto Trader, I don't see the point of buying a car with payments anymore. You just have to be flexible on how far you're willing to drive in order to find that particular vehicle with low miles.

[treehugger1]

"Your Honor, Sir. I was so amiss with my current financial situation that I began to gamble at the local casinos and play lotto and buy thousands of dollars in $10 "scratch-offs.". The rest is all history. I wish I had receipts, but I just kept pulling those cash withdrawls hoping to win the big one." (Keep in mind that in many states, the states encourage consumer gambling to balance their budgets. Hell, they know it's such a potential problem that the states have 800 number hot lines for gambling addictions.) LOL

[catleg]

"Your Honor, Sir. I was so amiss with my current financial situation that I began to gamble at the local casinos and play lotto and buy thousands of dollars in $10 "scratch-offs.". The rest is all history. I wish I had receipts, but I just kept pulling those cash withdrawls hoping to win the big one." (Keep in mind that in many states, the states encourage consumer gambling to balance their budgets. Hell, they know it's such a potential problem that the states have 800 number hot lines for gambling addictions.) LOL

Just tell them you were prescribed Mirapex. This is what happens to many people on that pill. Happened to me.

[catleg]

What we did was get the house in ship shape. We insulated the roof, put down new roofing boards and put on a new vinyl roof. We also installed a heat pump. We installed a new hot water heater.

We bought 2 vehicles with payments. The truck came with all the maintenance whistles.

I built a redwood greenhouse.

I built a small garden pool and built some cement block security walls.

Update water fixtures in house. Buried electric and water lines in back yard.

There are so many things that money can buy. Just have to plan.

This is basically my game plan as well. We can't move now, between the real estate market and our credit, so invest in the current house. New bathrooms, new roof, etc. Before some darn trustee gets involved, starts telling me I have to pay those unsecured creditors something (as opposed to the nothing they're getting now)

[OKBK]

Can someone clear the money situation up if you wait and then file since this is a good topic. If you owe lets say 50,000 in debt, and you stop paying, of course you will have some money left over. Lets say you manage to gather up 10,000 dollars or so in a brown paper bag after 3 years because you stopped paying as you were choked off financially and got over your head in debt... Now paying off some creditors from the 10,000 vs. 50k plus mounting penalties would make no sense, you would still have tons of collection agencies plus you had preference over other creditors if you pay 10k of the debt. So you cannot file if you have this money as cash? You must keep spending it? And lets say for this scenario the last 90 days are just withdrawals from your bank account as cash withdrawals, you pay off living expenses but you have some cash on hand. So what happens here? Spend it one bit at a time? Plus I have read the look back period can be up to 2 years?

A lawyer told me 1 year lookback only. He seemed very confident that no CC could say anything after 1 year.
So I can spend my money on lotto??!!!!

[catleg]

A lawyer told me 1 year lookback only. He seemed very confident that no CC could say anything after 1 year.
So I can spend my money on lotto??!!!!

Just put it in a shredder and save the trip to the 7-11.