Questions on credit cards???

[253BK]

Hi everyone I have a few questions on credit cards at this point we are current on everything until Nov 1st since we will be short about 5500$ due to having a few rental homes and our wonderful renters arent paying up!

Question is all of our cards are current and we owe about 12K total but need a few items for our house plus taxes are due would we be smart to pay for the items needed and keep paying our cc payments even though we will be late on our 4 homes???

From what I have read on the forum it sounds like most of you are just stopping payments on everything until you get to file? Our total debt would be close to 20K in cc debt if we pay our taxes and everything else we need! What is your thoughts?

[253BK]

I guess the big question is anyone who has filed and closed were any of your credit cards written off??? I hate to put anymore money into the house on a cc if I am going to end up having to pay more for it in the long run! With all the fees and intrest!

Thanks for your time and info

[lrprn]

You must pay for what you hope to keep or have to keep after filing - mortgage on any house you intend to keep along with associated secured costs (taxes, for example), car payments, etc.

You don't have to pay any unsecured debt - credit cards, unsecured loans, etc.

Almost everyone here stops paying their credit cards before filing, and these cards are wiped out once your case is discharged. The only exception would be if a creditor files an objection stating your debt shouldn't be discharged and the court upholds it. This is VERY, VERY RARE - typically in obvious fraud cases where a luxury item or unnecessary vacation is put on a card right before filing. If you've made no charges on the cards for 90 days before you file, even without making payments on them, 99% of the time all credit cards are wiped out.

[CindyLou]

253BK,
Hi.....just a word of advice, beware of paying taxes via credit card before you file. Technically the credit card co. can object to the discharge of that debt up to 3 yrs from the date the taxes were paid. Taxes are not discchargeable unless they meet certain criteria (I think its 3 years from the date you filed) and charging them on a credit card does not make them so. The creditor could argue this point once you file and if you have charged the taxes directly to the card. Of course there is no way to know for sure if the will......

[253BK]

THe hardest part is figuring out if we will be able to go BK7 since I have made a good amount of cash this year and my wife does ok!

[nc73]

THe hardest part is figuring out if we will be able to go BK7 since I have made a good amount of cash this year and my wife does ok!

I guess you'll find out soon enough. You should do the means test yourself and figure out your expenses and income. Don't include payments to the 3 homes you rent out. Some say you can but in the end it probably won't be included. I see a 13 in your future...

[253BK]

SO most unsecured debt is discharged I thought they had some new law that makes you pay back any credit card debt weather you go BK7 or BK13???

[lrprn]

SO most unsecured debt is discharged I thought they had some new law that makes you pay back any credit card debt weather you go BK7 or BK13???

In Ch 7 you pay back zero unsecured debt - all of it is wiped out.

In Ch 13, you pay back anywhere between 0% and 100% of your unsecured debt depending on how your Ch 13 Means Test and Schedules income vs. expenses work out. If the total payback to unsecureds is less than 100%, whatever unsecured debt is left over when the plan is done is wiped out.