Need sample letter to creditors

[pa333]

Hi all -

We are going to have to wait a few months before filing BK. Until then I plan on paying a very small amount ($25) each month on each of our credit cards and a consumer loan we have.

We already called and spoke to each creditor, explaining that this is a "temporary" situation (which we still hold hope that it will be - we got unexpectedly screwed because our annual bonus was slashed, but my husband's company "promises" we will be given another bonus payment this spring - we just don't believe them).

But I think it would be a good idea to put this in writing. I was thinking of mailing an actual paper letter to each creditor each week to remind them that we know we are paying well below the minimum payments, that we hope this will be a temporary situation, etc. I don't want to get sued before we file, if we do indeed have to file, later this year.

Has anyone else mailed letters like these? If so, what do you include. Does anyone have a sample or template they have used. I want to keep our creditors updated, but I don't want to accidentally include any language that could be wrong or potentially get us in trouble if/when we have to file for BK.

Thanks in advance!

[StartingOver08]

No. I would not send the $25/mth to the creditors. They can sue you anyway and use the payments as evidence you owe the debt. It does nothing to slow the suing process.

If you are planning to file within the next 6 months, don't bother sending any money unless you have taken a recent cash advance, or done a balance transfer or made recent charges.

[catleg]

I agree, if you've decided you can't make the minimum payments, then sending anything at all is just pissing the money away.

They will show no mercy, will jack your rate to something close to 30%, and charge you the $39 late fee and $39 overlimit fee.

I don't think it will even stop the phone calls.

Really, once you've decided to go down the BK path, and it is the only sensible path, by the way, all the bills and balances are simply accounting fictions on paper, total fantasy numbers, bearing no relation to reality, unless you should somehow hit the lottery and discover a million dollars you have nothing else to do with.

I am looking at a bill I just got from Chase for my United Airlines Visa, which I last paid around October. The balance is almost 11,900 on a card with a 10,000 limit, and my "minimum payment" is up to 4,500 dollars! It is going up about 300 dollars a month, 270 in interest and of course the 39 late fee.

I have 20-30 cards like this.

So if you think $25 is going to make them happy. Ah, no.

I think you'll find after a while that trying to reason with the people who call you on the phone all the time is a total wasted effort.
They try to prey on your guilt but the reality is all they want to do is get you back on the payment treadmill/gerbil wheel and stop you from filing for BK.

I'm going on 6 months without paying and have not been sued yet by any credit cards.

It probably looks better to default on everything than to pick and choose who to pay, I think they look at your credit report periodically to see if you're paying anyone else, this would suggest you have some resources worth suing for. I just pay my house and car payments and that's it.