Can I do a big spend 90 days of filling?

[DYLAN150]

I was wondering about that car insurance issue. I have a USAA credit card and USAA car insurance too. Won't most car insurance companies raise your rates when your fico goes way down?

[flyinbroke]

Mine did. I am sorry I switched to USAA because they were far cheaper than my 17 year history with State Farm. SF raised them big time and blamed Ike claims. I made no claims as I was houseless at the time. Switched to USAA, now they cost more than staying at SF would have. My "maxed outs" are thanks to CLDs, not because of spending. They don't care....it is not what the reports say.

[Dst1]

If you are in a position that you can't support yourself without credit cards bankruptcy isn't going to fix your situation.

This is the key point of this whole thread.

People keep talking about insolvency and cutting up credit cards yada yada. People sometimes get obsessed by BK and forget the larger issues. Why file BK at all until you have some source of income. Fixing the income problem has to be the first goal because sooner or later the great teat of debt is going to run out.

[kornellred]

A couple of points here: If you stop paying minimums on your credit cards, they are going to get canceled within a couple of months. This has a tendency to render the matter of responsibility into a non-issue. You stop paying - the creditor will stop letting you spend.

If you are planning on filing for bankruptcy, it generally means that you cannot afford to pay your debts. Debtors do not instantaneously become unable to pay their debts except in extreme circumstances, such as suddenly losing a job or becoming incapacitated.

There is no cut-and-dried advice to be given as to how an individual should prepare for filing for bankruptcy. All I can say is that if you willfully continue to utilize credit, knowing full well that you are definitely, absolutely, positively going to file - then you are doing something that can be construed as abuse.

Because this happens to be true in so many cases, and because declaring bankruptcy is a right that is guaranteed by the US Constitution, the presumption of abuse is set aside by following the rules for filing. Aside from the rote procedural necessities, there are no "do's" to contend with, but there are a certain number of "dont's" that must be taken into consideration. Most of them have to do with ameliorating conditions that expose the debtor to criticism by the system.
If it feels wrong - it is wrong.

[JEM]

If I stop paying my USAA credit card that could affect my USAAcar insurance?;
and also what about my car loan I never miss a paying on my car loan. I have my car loan with Qualstar Credit Union.

If I stop paying my usaa credit card do you think that they could repo my car because I have the car loan with another credit union?

Our experience has been this....my husband and I each had separate USAA CC's in each of our names. We stopped paying in Nov/Dec and our auto insurance was just renewed for the next 6 months. I should also add, so far the "increase" has been minimal. About $25 over the 6 month period. Not sure what the "reason" was, but for now, we'll stay with them.

[SMinGA]

We stopped paying around March or April I believe, and got the non-renewal notice in August for an auto policy that expired mid Sept. The non-renewal notice came a few weeks later for our home owners which was up in November.

Our experience has been this....my husband and I each had separate USAA CC's in each of our names. We stopped paying in Nov/Dec and our auto insurance was just renewed for the next 6 months. I should also add, so far the "increase" has been minimal. About $25 over the 6 month period. Not sure what the "reason" was, but for now, we'll stay with them.

[lalap123]

I just wanted to jump in here b/c I've seen a couple of posts regarding not filing BK until you are financially stable.

While I agree with that in theory, we are in a similar situation (not exactly financially stable), but I felt I had to file now b/c: 1) we are expecting a large tax refund, 2) my contract work could pick up at any time and could take me from $0/month to over $1000/month, 3) sometimes my in-laws surprise us unexpectedly with money when their business is doing well, 4) I have assets that a creditor could come after, and I haven't paid them in over a year and 5) I am diligently looking for a full-time job and in my area of work I could potentially get a job making $50K. My problem is that if two, three or all of these happened at the same time then I might either get screwed on the 6-month look back or at the very least have to tell a trustee at the 341 that my situation has changed since filing and now I will be bringing in $50K a year. I should mention that right now my family is VERY close to the median.

So, in certain situations doesn't it make sense to go ahead and file with the intention of scraping by until more income can be found? We really felt like we had no other choice...

[OhioFiler]

I just wanted to jump in here b/c I've seen a couple of posts regarding not filing BK until you are financially stable.

While I agree with that in theory, we are in a similar situation (not exactly financially stable), but I felt I had to file now b/c: 1) we are expecting a large tax refund, 2) my contract work could pick up at any time and could take me from $0/month to over $1000/month, 3) sometimes my in-laws surprise us unexpectedly with money when their business is doing well, 4) I have assets that a creditor could come after, and I haven't paid them in over a year and 5) I am diligently looking for a full-time job and in my area of work I could potentially get a job making $50K. My problem is that if two, three or all of these happened at the same time then I might either get screwed on the 6-month look back or at the very least have to tell a trustee at the 341 that my situation has changed since filing and now I will be bringing in $50K a year. I should mention that right now my family is VERY close to the median.

So, in certain situations doesn't it make sense to go ahead and file with the intention of scraping by until more income can be found? We really felt like we had no other choice...

If you are close to the median income for your family size I wouldn't consider you scraping by. I think the wait for stability plan is better suited for someone who is living only on government assistance or charity.

In your case, your plan sounds reasonable.

[MrBankruptcy]

Remember if you buy a computer a lot of times they will ask for it back. Computers , jewlery, etc.. are no no's. You could get your computer fixed or upgraded but nothing more

[nikkidbl]

LOL... great advice

Based on this and your other messages here is my advice:
Cut up all your credit cards now... like really... now... i'll wait....
....
....
Okay, now when the next credit card bill comes, don't pay it. none of them.
File bankruptcy when you are ready.
Done.