Bankrupcy Versus Just Not Paying CC's

[Cammy]

Hello, I am new to the forum. I have had great credit on cc's for over 10 years and I own a home in Florida. My home is now worth about 60,000 less that what it's mortgaged for. I am current on payments. I also have homestead exemption. I consulted a BK attorney because I am self employed and find I can no longer pay the outurageous CC monthly installments. I have 46,000 in debt spread over various cards. I have never been late. The attorney told me I should immediately file BK, but I have read that it should be the last resort incase other things come down the pike, I mean I haven't even been late on a card yet and it takes 6 months before they write you off. With so many defaulting and the fact that they cant take my home which I plan to stay in, what is the worst that can happen to me if I wait to file. I am afraid of a judgement where they will take all my household goods. The attorney mentioned these actions could happen quickly. Someone please advise.........

[scorpion35]

i also live in florida and stopped paying my credit cards 7 months ago and i just got served and sued by chase.(7 months later)
so i say u have about 6 months from the time u stop paying

[Freddy03]

I have been sued by CC in FL. After researching I have found that they can't take household items but could take vehicles to sell to satisfy a judgment if they are awarded them. They could garnish your wages (not sure how that works being self employed) and levy your bank account (which could happen at anytime after the judgment).

I tried for months to keep up with the payments but the balances were never going down, then the interest rates went up to where the minimal payments were something I could no longer afford.

If I had to do it over again I would not have waited so long to file BK. I would have stopped paying the cc and used that money to pay my BK attorney. These cc lawsuits have been a nightmare.

Good Luck to you

[AngelinaCat]

Hi Cammy:

Welcome to the forum. I moved your post from the 'BK & Credit News' board, into a new thread in the 'General Bankruptcy Talk' board, as that is where it is more appropriate. The 'BK & Credit News' board is for news articles only.

Now, to your question: I think you are very wise to start thinking about what your options are, especially as you are self employed. I am pleased you have the Florida Homestead Exemption. That helps alot.

Now for some questions: How many are in your family, or are you 'it'? (I couldn't think of a better way to phrase it. Sorry.)
Are you a Sole Prop or LLC in your business? The answer to that will help some of the other members with small businesses to formulate their answers.

What are your other liabilities, if any? Are you paying a mortgage? or more than one? Do you have a car note or lease? If 'Yes' to any of these, are you comfortable with sharing a round figure of what is involved?

As far as the CCs are concerned, the general consensus is that it will take about six months for them to start any kind of legal action if you just simply stop paying the cards. Some are more aggressive than others, especially if you have other loans tied in to the financial institution where your cards are located at.

A final suggestion at this time, once you decide that you WILL file BK, stop paying on your credit cards, and save that money to pay your attorney--if you choose to hire one. You can also start saving some money for an emergency fund, and purchasing some storable canned goods, and soaps, shampoos, paper products, etc., that are used every day.

Good luck to you, and again, welcome to the forum!

[tobee43]

yes, we didn't wait until the summons starting coming before filing in florida.

what we did do tho...was hire an atty and THEN stopped paying the cc's even before our atty was pd in full...that way we knew when we were going to be able to file (we moved to fl from another state, but we didn't want to take any chances) and it took us approx 6 month to pay the atty off warding off all suits from cc in the nick of time! it was tricky!

[AngelinaCat]

To echo tobee43, we had a couple of pending lawsuits regarding a car loan and another small loan from American General. We didn't want to have a judgment, and you don't want one either, as it involves another set of court procedures to get the judgment vacated, rather than having the debt discharged in the first place through BK.

[tobee43]

To echo tobee43, we had a couple of pending lawsuits regarding a car loan and another small loan from American General. We didn't want to have a judgment, and you don't want one either, as it involves another set of court procedures to get the judgment vacated, rather than having the debt discharged in the first place through BK.

exactly angelina..and EACH set of those additional court proceedings COST you extra $.

just make sure you watch your timing and it will work for you just fine.

[Cammy]

Hello, Thank you for answering. I am sole proprieter and live with someone. I have no car, I drive his. I am going to stay in this house. I wonder what difference does it make if I have a judgement sitting on me until I die? I can't be forced to sell, you can't have your wages garnished in Florida and I will not try to buy another house anyway. I will pay cash for things and close my bank account. Just wondering though, as I know people who have taken years to be sued for CC's. Also, with this default climate were in, and the mess with the economy and the Banks bailouts, I wonder how they can keep up with all the lawsuits. What started this for me was they cut my limits down to what I owed. A dirty trick as of course I needed the plastic to help get by..........

[Cammy]

Hello, Thank you for answering. I am sole proprieter and live with someone. I have no car, I drive his. I am going to stay in this house. I wonder what difference does it make if I have a judgement sitting on me until I die? I can't be forced to sell, you can't have your wages garnished in Florida and I will not try to buy another house anyway. I will pay cash for things and close my bank account. Just wondering though, as I know people who have taken years to be sued for CC's. Also, with this default climate were in, and the mess with the economy and the Banks bailouts, I wonder how they can keep up with all the lawsuits. What started this for me was they cut my limits down to what I owed. A dirty trick as of course I needed the plastic to help get by..........