Stopping existing payment arrangements

[Freddy03]

Ok since I have made up my mind on filing BK. We meet with attorney next week.

I need to start freeing up some money to pay for down payment. So today I started to cancel the payment arrangements I have with cc that I have agreements with.

One company was awful. They did not want to cancel the payments just lower them. I did tell them I was intending on filing for BK and they got mad and said I will be contacted by their attorney soon. Little do they know I already have a judgement against me and well aware of cc lawsuits.

Was this wrong for me to cancel these payments?

[SMinGA]

No, it was not wrong.

Keep in mind that the person you were dealing with: their job is ONLY to get you to pay. Its time to look out for yourself though, and stopping those payment arrangements is a step in the process. No reason to keep throwing money away.

[ohiogal]

I don't think you were wrong at all, but be aware that if they have your banking account information, some credit card companies will continue to take money out of your account even if you tell them to stop. My attorney told me that Discover card in particular is VERY bad about this, they'll keep taking the money even if an attorney sends them a cease and desist letter.

The only way to really protect yourself from this is to close out any account your CCs have access to and transfer the money to a new account they don't have the numbers for.

Good luck!

[Freddy03]

Thanks - I can't close this account this month. I'll just keep my fingers crossed they don't try to pull a fast one on me.

[SMinGA]

Perhaps keep very little $ in it, just in case. And if you have direct deposits going into this account - work to move them elsewhere. That way, if the creditors DO try to withdraw money, it won't take money that is meant to pay for things you need. And ultimately if they overdraw this checking account, it would just go into your list of creditors.

[Freddy03]

Thanks - I just called them again (because I was nervous) and spoke with a supervisor and they stated all payments were stopped and to get them the name of my attorney asap. If they do take a payment I will call my bank and say it wasn't authorized.

I am concerned about the chase card I have b/c I bank w/ chase. I think I just might keep that payment until next month until I can switch banks.

[ohiogal]

Thanks - I just called them again (because I was nervous) and spoke with a supervisor and they stated all payments were stopped and to get them the name of my attorney asap. If they do take a payment I will call my bank and say it wasn't authorized.

You might want to call your bank and let them know you stopped the payments, and find out what their policy is. You don't have to let them know you're filing BK, just tell them you are no longer authorizing XXX to automatically withdraw money from your account. That would be my advice.

I would also get the agreement from the CC company in writing that they are halting the payments. Couldn't hurt!