Do I stop making the payments?

[Brookamy]

If I'm going to file for BK, do I stop making the payments on my credit cards? I am having a really hard time making the minimum payments...sometimes even getting cash advances on the cards to put in my checking account to make the payments. My credit cards are basically all maxed now, so that isn't a an option.

[Flamingo]

Stop making the payments and stop robbing Peter to pay Paul (Peter will eventually go broke and your credit limit will run out and the interest rate go to 32%). By doing that, you will free up money to retain your attorney because there are attorneys fees which will need to be paid in advance when you retain an attorney. Do not make any more credit card purchases if at all possible. Do not buy any luxury items with your credit cards. Call and make an appointment with a BK attorney as I mentioned to you in my response to your other thread.

[Brookamy]

Peter is already broke and the interest rates are already high...

I will not use any credit cards...that I can promise.

I'm calling to set up an appointment today!

[justplaintired]

Stop using, stop paying. Go see a few attorney's who will give you the same advice. Start budgeting, you'll be surprised once you stop charging and stop paying how good it feels to pay cash for things!

[Dave C.]

Why are you waiting to file? Your debts not going to go away by itself.

[Brookamy]

I'm not waiting. I've got two appointments with two different attorneys in the next week.

[JRScott]

Don't pay the credit cards anymore. However if you took some cash advances recently you may need to delay filing for 6 months, the lawyer will tell you what is best for that when you speak to them. Just be open and honest about everything and they can help. Make sure to pick one you feel comfortable with as it is very important.

[Brookamy]

I have/had a loan up to $20,000 with Bank of America and initially used just over
$19,000. They sent checks to use with every statement. About two months ago I wrote a check out for $600.00. I put that money in my checking account to help pay the other credit cards.

I suppose that is a cash advance, huh?

Ugh....I don't think I can "be in limbo" for six months!

[Lajazz947]

Brook,

I try to take it one day at a time.

It took me months of anguish and guilt to get to this point and my wife and I made the decision.

Now if you read my posts I also may have to wait but once you decide and make a plan you will feel better even if you DO have to wait.

Stop paying everyone and take a rest from the anxiety of no money.

[Flamingo]

Your attorney upon retention will tell you to stop paying credit cars and car payments anyway immediately but to continue to pay on your mortgage(s) if you are keeping your house. When those payments stop, you are amazed at the money that you actually have on hand that you were forking out to creditors (always remember that when you want to obtain credit cards in the future). That is how a lot of folks obtain the money to pay for their attorney's fees that will be required upon retention. What will occur when the payments are phone calls galore. After 30 days being late with a payment, the phone calls and reminder letters in the mail or via email will start and the more payments you miss, the worse the calls get. You can ignore then or answer them. Everyone does something different. When you retain an attorney, you can provide that information to the calling creditors and when you obtain a filing number and give that to them, the calls eventually die down, especially after they receive the filed paperwork for your case.

[Brookamy]

Flamingo, I would like to keep my car....I was planning on making that payment. I've never been behind on a car or mortgage payment.

Will I be able to keep my car? I bought it new in 2006. It is a Pontiac Vibe. I'm sure I owe more than it is worth but I need a car and it is reliable and gets good gas mileage.

[Lajazz947]

Flamingo is right. The calls are relentless but my attorney said I can ignore them.

I gave them my cell # so that I can keep it out of the house.

I also have a separate # ( I work out of the house in a separate structure) so my wife is not burdened by the calls.

Make sure you have caller ID and watch out for Capital one. I think that they have separate area codes that they use just to confuse debtors and have them pick up phone calls when the debtor thinks that it is someone else.

[Lajazz947]

Brook, check with your attorney. Different states have different exemptions.

[Brookamy]

I will do that.

I'm just hoping that no one calls my work.....

[Flamingo]

Keep paying on your car until you talk to your attorney. Some folks who file a Chapter 13 are able to cram their vehicles into their Plan (as we did) and they can stop making payments on their vehicles prior to filing. You are not in that position and you want to keep your vehicle.