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Should I stop paying or look like I am trying

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    #1

    Should I stop paying or look like I am trying

    I will be filing for BK 7 next year. I own a small business that I racked up the debt for and I am currently liquidating and will close, probably FEB 09.

    As of today, I have some cards that I have charges for product, a card that has a cash advance of $1200.00 and a card that has a balance transfer of $1500.00to another card. Currently I have not made a payment on 3 cards for 1 month. One card has a late payment, the other 2 are current.

    Should I at least try to make an effort and pay a little on some of the cards? Or does it even matter?
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    #2
    If you truely intend to file, stop paying all debt that will be discharged. You're just throwing money down a rathole.

    Comment

      #3
      You need a clean 90 days of no use of those cards. If you are going to bk in Feb, you are close to having them figure you out so beware of a suit. Make sure you get your ducks in the row and plan this out. Watch out for any inside transfers. READ this place good. 'Hub
      If I knew it all, would I be here?? Hang in there = Retained attorney 8-06, Filed 12-28-07, Discharge 8-13-08, Finally CLOSED 11-3-09, 3-31-10 AP Dismissed, Informed by incompetent lawyer of CLOSED status, October 14, 2010.

      Comment

        #4
        And do NOT make any more cash advances or transfers. The best advice is to let those age as long as possible. 90 days is the absolute minimum, but 180 is MUCH better.

        Good luck.
        "To go bravely forward is to invite a miracle."

        "Worry is the darkroom where negatives are formed."

        Comment

          #5
          As always, the Cats have provided sound advice. The key thing to remember, is that Bankruptcy law practice has this concept known as technically bankrupt

          The concept suggests that you've been Bankrupt at least 90 days prior to filing.

          That's why the more time you put between having used/borrowed money and filing, the better that they don't consider it as fraud.
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

          Comment

            #6
            Still Confused

            So, I'm still a little confused. I know not to use the cards anymore. I definitely cannot pay the minimums on these, especially for 180 days. Should I try and pay something on them, to show that I am trying. At least for 180 days???

            Or should I not use them, having the last charging activity being July/August, but stop paying them all together, now?

            Thanks everyone, you guys are very helpful.

            Comment

              #7
              Originally posted by CSAS View Post
              So, I'm still a little confused. I know not to use the cards anymore. I definitely cannot pay the minimums on these, especially for 180 days. Should I try and pay something on them, to show that I am trying. At least for 180 days???

              Or should I not use them, having the last charging activity being July/August, but stop paying them all together, now?
              Only if you reasonably attempted to pay them before. For example: say you charged $2,000.00 on May 1, 2008 on a credit card. We would tell you to make payments at least through September, 2008. Then stop paying, then file after December 1, 2008.

              You would want to make sure it looked like you were attempting to pay the bill. Not just ran up the bill, never made one payment, then filed Bankruptcy!
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              Any advice provided is not legal advice, but simply the musings of a fellow bankrupt.

              Comment

                #8
                Originally posted by CSAS View Post
                So, I'm still a little confused. I know not to use the cards anymore. I definitely cannot pay the minimums on these, especially for 180 days. Should I try and pay something on them, to show that I am trying. At least for 180 days???

                Or should I not use them, having the last charging activity being July/August, but stop paying them all together, now?

                Thanks everyone, you guys are very helpful.
                Stop paying on them now, period.
                May 2008 Hired 1st Attorney/Stopped paying CCs
                May 21, 2009 Retained 2nd Attorney
                May 28th - Filed for Ch 7 (FINALLY!)
                9/11/09 - DISCHARGED!!!!

                Comment

                  #9
                  Originally posted by CSAS View Post
                  Should I try and pay something on them, to show that I am trying. At least for 180 days???
                  It does absolutely no good to make partial payments. If you pay one penny less than the amount stated on the payment request, to most creditors it's the same as if you had made no payment at all. Creditors love partial payments because then they can charge late fees - this is where the REAL money is for them.

                  If you are certain you are going to file, then stop paying all the cc cards a and any other unsecured payments now. Do not send them one more cent in payment starting today unless your lawyer instructs you to do so. Clear enough?
                  I am not a lawyer and this is not legal advice nor a statement of the law - only a lawyer can provide those.

                  06/01/06 - Filed Ch 13
                  06/28/06 - 341 Meeting
                  07/18/06 - Confirmation Hearing - not confirmed, 3 objections
                  10/05/06 - Hearing to resolve 2 trustee objections
                  01/24/07 - Judge dismisses mortgage company objection
                  09/27/07 - Confirmed at last!
                  06/10/11 - Trustee confirms all payments made
                  08/10/11 - DISCHARGED !
                  10/02/11 - CASE CLOSED
                  Countdown: 60 months paid, 0 months to go

                  Comment

                    #10
                    Originally posted by lrprn View Post
                    It does absolutely no good to make partial payments. If you pay one penny less than the amount stated on the payment request, to most creditors it's the same as if you had made no payment at all. Creditors love partial payments because then they can charge late fees - this is where the REAL money is for them.

                    If you are certain you are going to file, then stop paying all the cc cards a and any other unsecured payments now. Do not send them one more cent in payment starting today unless your lawyer instructs you to do so. Clear enough?
                    Very clear!! Thank You! I just didn't want to do something that I was unsure of and that I cannot undo. Thanks everyone. This message board is really a mind easer. With everything that I have going on in my head about the situation that I put myself and my family in, this board has helped put my mind at ease a little.

                    Thanks again, everyone.

                    Comment

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