New Account

[tissa]

I finally retained a lawyer this week, he recommended opening a new bank account where we don't have any debt and close our other bank accounts. At one of the banks we have a credit card and a motorcycle loan I think when we opened both having automatic payments was a loan requirement or something so I'm afraid they won't stop the automatic payments when asked. Do they have to stop the automatic payments when asked? If it was a requirement of the loan can they enforce some penalty?

Has anyone every had trouble getting auto payments stopped?

[kornellred]

The simple way to stop automatic payments is to have no money in the account that automatic payments are drawn from. If automatic payments were a condition of a particular loan, the bank will refuse to stop the transaction if you ask, because they know that the most likely reason for asking is that a borrower's financial situation is changing and they want nothing to do with it.
Your bank will charge your credit card for any defaulted payment, but if you are contemplating bankruptcy that should not matter to you.

[Drazil65]

Cancel the card and close the bank accounts.

[LadyInTheRed]

If it was a requirement of the loan can they enforce some penalty?

They can repo the motorcycle if that loan isn't paid, and perhaps even if it is just the credit card that isn't paid if there is cross collateralization. Whether that is an issue depends on how soon you file the BK. The automatic stay will prevent repossession for awhile.

I wonder if closing the account, as opposed to draining it and leaving it empty, will result in quicker repossession of the motorcycle. Something to think about if you plan to keep the motorcycle and are not filing pretty soon.

[tissa]

We're planing to keep the Motorcycle so and now that I think about it I think the Lawyer said to keep making the Motorcycle payments as long as we're keeping it so I'll leave enough in the account to pay that. And try to get them to cancel the credit card one, how do I find out if there is a cross col lateralization with the Motorcycle and the credit card I don't remember them mentioning that but you never know. They are both paid for this month already so I have time to research it.

Another question I bought a few things for Christmas on credit, not over $400 should, I wait till 3 months after those cleared to actually file so I guess that would be sometime in March? Note this will probably be a chapter 13 as we make almost double the California amount for a family of 2.

Also does anyone know if filing will affect being a signer on someone Else's credit card. My parents who live in Canada made me a signer not a joint owner on one of their credit cards to make it easier to give me money for Birthday's and Christmas they just say go spend a certain amount of money on the card as a gift instead of paying crazy shipping fees. I just don't want this to either affect my parents card or credit or something. The card is on a Canadian Bank with no ties that I know of to the U.S. hmm I guess when I pull my credit report I'll see if its there if not I guess there's no sense in telling the lawyer about it.