Can Lowes do this?

[DeadManCrawling]

Paper trail?

I would think copies of receipts, if asked for, would be plenty.

[frmrdwn]

If you are only a few months from filing why are you worried about lawsuits? Keep in mind these things don't go through our overloaded court systems in any hurry. Before I filed I had three suits filed against me. I was served on the first in November 2007, the second in February 2008 and the third in November 2008. When I filed in December 2008 none of the three had made it to a courtroom yet.

I can't file for 7 months, April Fool's Day. Unfortunately, this is my second bk and that's the magic 8 year mark. I met with a really nasty attorney yesterday. He stated that my most immediate concern was keeping these creditors at bay because he thought I would get a lawsuit and garnished quickly. He told me that since I am gainfully employed and have positive equity in my home that I would be an easy target. Hopefully, our courts are as backed-up as yours.

[frmrdwn]

I think if you stop paying now you can almost certainly make it to April without lawsuits and certainly without judgments or garnishment. I was mostly thinking in terms of taking the time to get your banking straightened out. If you need that money for food, by all means keep it.

As far as transparency you just have to end the automatic debits. Get a clean bank account, get a debit card, and then don't pay any cards from it and don't use the debit card for internet purchases, or let's just say be extremely prudent, because if your card number is compromised you'll really be in a world of hurt.

I am too gullible. Bordering on paranoid. Believed one too many things I read on the internet. I believed a post that said creditors had easy access to our bank account info., especially when collecting on an overdue acct.

Will my account be compromised if a car insurance co. automatically debits it? I can't afford the odd payment plan offered if I pay with check. They demand that I pay two months at a time and take a month off or something odd. What's up with automatic debits that causes a problem?

[splinter]

frmrdwn, you're only 32 days past due and you only have 7 months to go before filing BK. I wouldn't pay anything. Cap1 isn't going to get a judgment against you within 8 months of your last payment. Don't sweat it.

You have every right to close that US Bank account. The fact that your 2nd mortgage is debited from that account has nothing to do with your right to close the account. You should be able to change your payment method on your 2nd easily enough, so it shouldn't be a problem.

If you're concerned about your bank accounts, you can close all of them and go to cash. Have your employer direct deposit to a prepaid debit card account or cash paper checks and pay bills with money orders. It's an inconvenience, but remember, you're only doing this for 7 months. You'll have the piece of mind knowing you'll never get the dreaded levy notice in the mail from your bank.

I wouldn't be concerned that going to cash would create a "transparency" issue with the trustee. They see this all the time and know people go to cash, because they're being harassed by bill collectors. You're not hiding anything from the trustee. This shouldn't effect your BK filing in any way.

[catleg]

It's not being paranoid, creditors and other bad people can get at your money way too easily in bank accounts, either through the credit card (no PIN) access provided by the debit card or else through the ACH (paperless check) mechanism. When you don't have credit this puts you at risk of having what little money you have being locked up or siphoned off. It's really not a bad idea to keep money in cash and just put money in the bank when you need to write a check or send a payment. Ideally, you'd have 2 checking accounts, one for direct deposit of your payroll, and a different one, at a different bank, out of which you'd make all payments.

[SandyShores]

If you feel like your on the run you are not alone. It's the old fight or flight syndrome kicking in. Relax and stay a fight. You are in control. You are getting excellent advise from BB4U and Cat so take it.

As for what to do when you are low on funds-get creative and use your time researching ways to lighten the load. I've posted this on other threads and don't mean to preach or get long winded about how and what to do, but you can get a lot of things for free (or almost free) including food, clothing and even a hot water tank if you try hard enough. I did and am.

Yes, it's time consuming and you hit a lot of dead-ends and yes you have to be humble and persistent but you'll have food on the table and hot water to clean up afterward for your efforts if you do.

Several years ago there was a feature article in a local paper about a woman who made close to $27,000 a year going through other people's trash-that's tax free. I'm sure the article may have come back to haunt her (like the IRS wanting their cut) but she was able to pay her mortgage and kept her house when she got up against it.

SandyShores

[frmrdwn]

Thanks to all for your advice. Keeping cash in my home safe and paying by money orders is probably what I will do. The idea of direct deposit onto a prepaid debit card is one to mull over...

I'm reminded that saying, "Just because you're paranoid doesn't mean people aren't out to get you."