Paying the Bills Question

[colleenbean]

Did anyone pay their bills untill they filed? Just curious.........I have been-the minimum BARELY.
THANKS

[DisneyGirl]

We did even though our atty told us we could stop as soon as we retained her services.

[SinkingFast]

A few people here, have commented in the past, that they stayed current on payments up until filing. Having few or no Lates will help with Credit Rebuilding later.

BUT, it's money down the toilet, so to speak.

If you're paying minimums, you're most likely paying pretty much interest only.

Plus, any Creditors you pay $600 or more total within 90 days prior to filing,........... The Trustee can go back to those Creditors and get that money back to be disbursed amongst all your Creditors. It won't affect your Discharge but it probably will delay Closing of your BK.

[demismom]

Did anyone pay their bills untill they filed? Just curious.........I have been-the minimum BARELY.
THANKS

Yes, we were up to date until the day we went to see the attorney, once we decided to actually file and retained him, that's when we stopped paying. It ended up being 4 months before we actually filed though, our Attorney is slower than molasses growing up hill in the dead of winter!

[keepmine]

I stopped paying unsecured creditors5 months before I filed. It is money down a rathole.

[JollyGG]

We didn't pay any creditors the month we filed, but up until then we were current. We had our heads deeply burried in the sand and once we realized we needed to file we just got it done as soon as possible. We hadn't really been using our credit cards much up until then and the usage we did have our lawyer thought was too small an amount (though over $600) for our creditors to bother with.
While waiting would have simplified our case with those two creditors we had charged on in the previous few months, I dont' regret not waiting the 70/90 days because I would have driven myself insane. Plus the charges to those two creditors were small enough that we could have worked something out if they had objected.
However, by doing so I did complicate my case, paid more in legal fees and am having to wait longer for my closing.
On the plus side I got a WAMU credit card and checked my credit score last night. Experian was 636. Not bad for just a few months out of bankruptcy.

[colleenbean]

Thanks guys I appreciate all your answers, makes me feel like I am not in this alone

[mvanz9999]

I also stopped paying as soon as I retained an attorney. There really is no point, in my opinion.

One you start the process, the attorney should send out letters to stop collectors from calling.

[JRScott]

Whether or not you've retained an attorney if you have made the decision to file bankruptcy in the next 6 months your just wasting your money paying non secured creditors, you should of course continue to pay your secured creditors as well as living expenses like utilities.

[Minnymouth]

Filing bankruptcy already hurts your credit, but having a LOT of late payments, collections, etc really help hurt it even more.

The less late payments and collections you have after bankruptcy helps keep that credit score higher right out of bankruptcy.

But everyone's right, your really throwing money out the door when you pay them and you know your going to file shortly.

But I also wouldn't wait a year to file and let the late pays and collections build up either.....

Kind of a catch 22 - doomed if you do and doomed if you don't situation.

[bkquestions]

Plus, any Creditors you pay $600 or more total within 90 days prior to filing,........... The Trustee can go back to those Creditors and get that money back to be disbursed amongst all your Creditors. It won't affect your Discharge but it probably will delay Closing of your BK.

Is this true in every state?

[CindyLou]

I didn't pay for a couple of years before I filed. Long story. But its been a pretty quick recovery. Hard work, but I think the credit takes a hard hit either way. I stand firm that once you make that decision that paying your unsecured creditors is certainly money down the drain.

[veloguy]

I'm certainly no expert, but my uninformed theory is

That we'll keep paying minimums on our unsecured debt until we file in December. It is throwing money away, but my thinking is it's worth it to just not have to deal w/ 15 different credit card companies calling for payment, and it'll be less to clean up after the BK as there won't be late payments/charge offs on my credit report that I have to chase down w/ the credit reporting folks. We will stop paying our mortgage as of this month though.

[CindyLou]

Hi Veloguy,
Welcome to the forum. About every month or so us oldies have to come together to try and convince a newbie about why its better to just turn off the phone and ignore the creditors and put your money to better use. There are soooo many things you can put that money toward right now. There will nothing less to clean up after your BK. Whether it is late or on time it will still be changed to included in bankruptcy once you file. 99% of the time the creditor will automatically update it to that status once you file whether even if you in a postive status. So the account will end up in the same exact status anyway. There are different schools of thought. BUT if you have retained an attorney, you can give your attorney's phone number once you get a call and they will have to call your attorney after that time. Again, welcome and we are here for you.

[lrprn]

Is this true in every state?

Yes. A preferential payment is defined as any payment by the debtor totaling more than $600 to any non-secured creditor in the 90 days prior to filing bankruptcy. It's a part of the current bankruptcy law.