AutoPays

[ksgirl38]

I'm preparing to file and I have a question about the autopay option. In addition to preparing to file, I'm also switching over to a new bank so I had to change all my information with everyone anyway. I've heard that once you file all the autopays stop, whether you asked them to be or not. The problem is I have one bill that is set up on autopay and when I went to change it with the company and ask what other payment options they had they told me that this was the only option. So if you have an autopay set up with your gas company for example, does that stop when you file? I just don't want to find out one day by surprise that they didn't get paid and cancelled me.

[tobee43]

most of ours stopped when we notified them, not exactly when we filed, however, we had one autopay with a bank that decided that although we stopped the autopayment plan they were going to take the money anyway.

i brought in the certified letter to my own bank that this creditor was no longer allowed to use that bank account, which we didn't close but i kept very little money in it, at the time, my bank ended up charging back the bank that took our money and giving me back my money.

i don't know if you don't stop them if they will continue when you file exactly. although they are notified and a stay begins where they are not allowed to take any money, so one would think it would stop then. that is, as soon as you have actually filed and have a docket number.

[ksgirl38]

Well I understand how it works when it's something that you carry over a balance from month to month and have listed them on your BK, like a credit card balance or a car, but I'm confused about how it works when it's one of your monthly bills that is paid to current every month. I don't want them to not get paid, but I'm not sure how it works exactly. I'm not even sure if they are notified. Is your gas, electric and anyone else you pay every month automatically notified or is it just who you have outstanding balances with?

[tobee43]

right, i'm not really certain to tell you the truth. i never did auto pay with any utilities until we moved here and now i do the electric and the water sewer etc all by auto pay.

if you are concerned about it, call each business office involved and stop the auto pay and change banks (if you already haven't. also, make certain you close the account so you don't get any charges for the payments bouncing back.

if you don't owe them anything it will not matter at all since zero minus zero is still a zero. in other words why would they attempt to withdraw a payment when there is no balance.

[ksgirl38]

No, I don't think you understand. I DO want them to take the money out. They told me it's the only payment option there is so I'm concerned it's going to get stopped. I just don't want to be surprised when I go in to find out that something has gotten cancelled.

[tobee43]

oh, no, i didn't understand then. i don't know how that would work if you list them on your bk. but, if you don't list them i think it will be fine. however, if you do, the stay will be in effect them and it could disrupt your service.

do you intend to list them? we didn't and actually use the same phone company here as we did in another state with no problem.

[ksgirl38]

Well it's just a monthly membership that's paid every month so there's no need to list them. I'm not behind and I don't want to disrupt anything. I thought it didn't matter if you listed them or not.

[Tater]

We were current on all our utility bills so we didn't have to list them. My electric bill comes out of my account on an automatic basis every month and it was fine after we filed. They wouldn't receive notification of the bk filing unless you actually list them. Our mortgage company was a different story, found out we have to pay with a check or money order. They won't even accept a check paid through online banking for some oddball reason.

[ksgirl38]

See that's what I'm confused about. I guess I thought even if you don't list them that they are notified of your BK and can't do the autopays. Maybe it's different with credit cards. Various people have been telling me that if I don't list my Victoria's Secret or Eddie Bauer credit card that it will still be closed. Those are the ones I use once a year (if I'm lucky) and haven't had balances. It's the Citibank and Chase cards that I plan to list and want closed. I don't get the mortgage company thing though. Money is money so why be particular about what form it comes in.

[Tater]

It could be different with credit cards because they do periodic reviews and do a soft pull on your credit report. Once this happens, they would probably close the account. I didn't get my mortgage company regarding the checks coming from my online bill pay. It's basically like getting cash since the money is taken out of the account before the check is sent. I didn't lose access to our online account but I can't even pay that way but that seems pretty normal through the bk process.

[ksgirl38]

So how does this work with student loans? I hear that people lose access to being able to log in and pay their bill. Do they not want my money? Are you supposed to mail them a check or does it go into deferment?

[TwentyTwelve]

My student loans went into deferment and were not due again until after the discharge. I could not login to any accounts, but I'm not sure if they would've taken a check or not because I was too broke to offer.

Also, keep on top of things. I was told by all the loan companies that I would get a bill in the mail after they were issued a notice of the discharge (you don't have to send it). One company did not send a bill, so I called to see what was up and was informed I had been charged a late fee that they wouldn't waive. Never could get that straightened out (went many rounds on the phone and nothing), so just paid it and moved on.

[Tater]

I lost online access to my student loan as well but was told by my attorney to keep paying it. I mailed them a check last week for my June payment and they have cashed it. I am keeping immaculate records through the bk process just in case something happens after discharge. I haven't received a statement for our car payment but mailed them a check and waiting on that to be cashed. It's only been a few days and that's the car we are planning on keeping. I even sent it certified mail so I would have proof of payment. I did that with my mortgage company as well. It costs extra $$ but it also gives me proof they received payment, along with the cancelled check.

[SMinGA2]

The problem with autopays would be when you set up the autopay thru the creditor's website. Not thru your bank. Such as I have a mortgage with BofA. I could pay thru their website, or I could use my CU's billpay to pay the bill. If I had it set to autopay thru BofA's website, I'd expect that to be cancelled when I filed. The problem is not that the creditors can't accept payment, but they're not supposed to do any collection activity. Pulling money from your bank thru their autopay is a gray area - it could be considered collection activity.

Note: for utilities it should not be a major issue. When you file you must list all debts. Just make sure you don't owe a balance to utilities at the time you file, and you don't have to list them. Such as my gas is due around the 9th and electric around the 20th. If I were filing on July 5th I would want those bills for July already paid - so that each had a $0 balance.

[SMinGA2]

Student loans, even though they are not subject to discharge, are subject to the automatic stay. So expect those to go into deferrment for a few months once you file. You can voluntarily still pay them, as interest does accrue, or you could wait until discharge and contact them about restarting payments.

So how does this work with student loans? I hear that people lose access to being able to log in and pay their bill. Do they not want my money? Are you supposed to mail them a check or does it go into deferment?