Still Paying On One CC -Is It A Mistake?

[ryan]

I have stopped paying 3+ months ago on 4 major cards. However, because the amount was small ($1000) I still have been paying on Amex. Payment is like $20 monthly minimum.

Thought at the time, I might be planning to seek settlements and maybe could end up keeping one card. This looks way less likely now. ( I also figured it would be one less creditor calling all the time)

Now, I'm thinking if I can make it to summer, I'll probably file BK 7 instead....so, would it be wiser to stop amex payment now, so it won't look preferential later on? ..or does it matter at all?

[BobMango]

I'd say it won't matter in the bankruptcy, but it might change how other creditors treat you.

I was in a similar situation. I had two companies that I had worked out reduced interest/payment plans that I was continuing to pay. Other creditors that were not willing to negotiate got nothing. After about three-fours months of this Chase filed suit. They could see that I was paying some but not them I guess.

On my bankruptcy petition I listed one of the creditors I was paying as having received more than $600 in the last 90 days. Don't know if the trustee required them to give him the money but at this point it's out of my hands so....

[AngelinaCatHub]

Ryan, it is unwise to keep paying if you are going to file. It is preferential even though it is a small amount. It will NOT allow you to keep that card. These are number crunchers, and not charities, and a bk will close all your accounts. A discharge will help you start up credit as you cannot file again for years. (8). Then gradually build up with small cards.

I will not use a credit card at all and I also do not know my credit score. It was 820 and I could care less if it were 400 at this time. 'Hub

[pcn]

If you are going to file, wouldnt that money be better off in a shoe box rather than sent to them? (In the south they have a saying describing this example. Something about "money blown up a wild hog's a$$"...)

[Dst1]

There are good reason to do what you are doing. After all, having a credit card can be a life saver in an emergency. I have heard of people paying right up until the day they filed without any undue consequences.

I would agree if they amount is large it might pose a problem as an insider transaction. But in your situation I would think that the $20 a month is an easy choice just in case you have an emergency.

[ryan]

Much appreciate all the replies....

as to keeping the card and active, I still may be foolish, for this reason: The card has almost no room on it to charge - not even $100......so it wouldn't be even be useful as a 'lifesaver' in an emergency.

I just paid it the last few months because it was such a low minimum and it was one less cranky creditor to hear from on the phone.

[BobMango]

Much appreciate all the replies....

as to keeping the card and active, I still may be foolish, for this reason: The card has almost no room on it to charge - not even $100......so it wouldn't be even be useful as a 'lifesaver' in an emergency.

I just paid it the last few months because it was such a low minimum and it was one less cranky creditor to hear from on the phone.

Given that, I'd stop paying and save the money until you file. You will not be affected by a preferential payment issue in either case.

[pcn]

wish someone would apy me $20 a month not to call them. although I bet there's a few who might like me not to call...