when to file BK

[253BK]

We just figured out we are going to have to file BK but are current on everything should we wait a few months to file so we can save up some cash and live in our home for free???

What do you think would be best???

[magyar123]

Why file if you are current on everything?

[Cassiopeia]

Why file if you are current on everything?

That was my first reaction too, but after being on this forum for a while now, I have found that there is a vast difference between when various people file. I think I've read here in the last week, even, where some are current on bills and filing. I'm a different story, I hadn't paid some cc's in months and months and months, MOST were in collections. I know now I SHOULD have filed a lot sooner (would have saved a lot of grief and my health), but I don't know if I would have filed when I was completely current. There must be other circumstances as well, that would lead to that decision I guess.

[Skorpnix]

Why file if you are current on everything?

Being current doesnt mean you don't need to file or in massive debt. The very first payment in my life that I missed and that is 15 years worth of cc life was when the bk lawyer said it would be wasting money and I could use it to pay lawyer fees. I robbed peter to pay paul for way too many years yet stayed current and had a 720 FICO score the day of filing. Lessons learned and move on is the plan.

[B12]

Live for free? In another post, you stated that you wanted to keep your house. You need to keep paying the mortgage if you do.

Or, have you decided to foreclose on the primary residence now?

[nc73]

Being current doesnt mean you don't need to file or in massive debt. The very first payment in my life that I missed and that is 15 years worth of cc life was when the bk lawyer said it would be wasting money and I could use it to pay lawyer fees. I robbed peter to pay paul for way too many years yet stayed current and had a 720 FICO score the day of filing. Lessons learned and move on is the plan.

Same here..my savings are tapped out so time to stop paying on the CC's... Have to wait a few months to file though..

[253BK]

I am curretn on everything BUT come the first I will be able to only cover one hosue paymetn out of 4! I had 4 deals closing this month all fell apart when this hole house crash hit our area right around the 1st of OCT.

When should I think of filing then after I get NOD notice in 90 days??? I figure the longer I wait the longer I can live here for free!

The home we are keeping is a rental but we will be moving back into it in the next 3 weeks that is the only one I will be able to cover then I will have a ton of lates on my credit!

[SinkingFast]

What State, 253BK??

You could live in a Judicial Foreclosure State and it could take a while. Or, you could have "Right to Sell" clauses in your mortgage contracts. That would allow the Lender(s) to move quickly, without going thru the Courts.

[ssdsco]

Your financial trouble starts when your debt exceeds your assets not including money you‘ve saved for retirement. After that it’s Peter robbing Paul for many folks. Peter can maintain high credit scores for many years doing this. Does this sound like the voice of experience.

[MomIcantFindmy]

That is exactly where we are. We robbed Peter to pay Paul for 19 years. Wonderful credit scores currently. We decided to start paying everything in cash about three weeks ago while we lawyer shop. It has been a huge eye opener. Missed our first payment on a cc last week. We have no real assets (no house, no property) except a third car we own outright for our daughter. When do things get really nasty for us? I don't mind calls, I can handle that but I am worried about judgements or wage garnishments.

[325Falcon]

Been living with out credit for 2 months now. It certianly is an eye opener!!

Having flashbacks of the 1980s before I had any CCs and only had my paycheck. It would be great if I could live like this untill I retire. Hey, its only 30 years!!

[253BK]

I am in WA state let me know what you think??? I have my laywer calling all the time wanting to file but seems like it may be to early and I think he is just after the money!

I figure we can live through feb 2008 then fileat puts me past 6 months with very little income

[RickInMich]

Been living with out credit for 2 months now. It certianly is an eye opener!!

Having flashbacks of the 1980s before I had any CCs and only had my paycheck. It would be great if I could live like this untill I retire. Hey, its only 30 years!!

I couldn't agree more on how living without credit is an eye opener. We, too, have been doing it now since September 1, and I really have an understanding now of why we're in our mess. I was paying all credit cards and debt on time, but then we'd have to charge our living expenses. I get it now. I only wish I could have gotten "it' a couple years ago. Ugh.

[JollyGG]

Okay, there seems to be some confustion here on what needs paid when, ect.

If you are sure you are going to file bankrupty stop paying any debt that you want discharged. If you want to keep a home or car keep current on your payments to that debt. Stop paying mortgages to houses you are letting go, cars you are letting go, and credit cards. You do not have a choice about which debts you include and don't include so don't cherry pick who to pay and who not to pay.

Unless you have a reason to wait to file it is usually a good idea to file sooner than latter. A few good reasons for waiting include - Waiting for a more ideal six month look back window of your income (qualifying you for either a chapter 7 or at least a lower chapter 13 payment), Waiting for more time to pass between your last credit card purchase for luxary goods, or cash advance (lowering the likelyhood of creditor objections), can anyone else think of others?.

While your credit score should be the least of your concerns when filing bankruptcy. Your focus should be one creating a lifestyle you can afford. Filing sooner is better for your credit score. If you file with a long possitive credit history before the filing date your score rebounds quicker. As you are planning several forclosures it is better to file before those forclosures happen so that your credit report reads IIB, not IIB and Forclosure.
Plus filing sooner is typically better for one's piece of mind. Why deal with creditor call and the stress of an overextended lifestyle sooner than you need to?

[chpxiii]

I've been living without credit for 4 years. Actually, longer than that because I didn't live on credit cards.

What those of you who just now moved to a cash basis will find that when you make a purchase it will be that much sweeter - you will know it is YOURS. Like when I purchased my washer and dryer a year and a half ago. At the time, it was the biggest check I ever wrote, but it felt so good when they delivered them and installed them. I stood there and stared at them, "They're MINE. Like, right now mine. Not when I'm done paying off the debt. Now."

Keep plugging away, folks. I know that when you're first into a chpt. 13 things can be tough and it will seem like forever. But if you simply take this as this is something to do, like breathing, then it will get easier.